Sustainability And Purpose-Driven Branding Is The Future Of E-Commerce
There’s no question that e-commerce is a driving economic force. In 2024, there are more than 26.5 million e-commerce brands worldwide, with over half originating in the U.S., according to reporting from Doofinder. These millions of e-commerce companies will serve nearly 3 billion people worldwide in 2024 who find shopping online more accessible, and often less expensive, than browsing in stores, according to Oberlo.
While online shopping offers convenience and discounts for consumers, it isn’t without flaws, particularly concerning the environment. That’s why sustainability has emerged as a critical growth driver for many e-commerce companies that want to take a more purposeful and sustainable approach to their business.
People love convenience. However, they also love the environment and are, perhaps surprisingly, mindful of the impact their online shopping habits have on it. One-third of U.S. consumers would delay their delivery by five days if they felt incentivized to do so, and even more would be happy to combine orders to reduce emissions, according to Statista.
“Today’s online consumers want convenience, but they also recognize the price of that convenience when it comes to the environment. So, they are actively seeking companies that focus on sustainability,” says Sabrina Liak, Co-founder and CFO of KITS. The Canadian-based brand is one of North America’s fastest-growing eyecare retailers. “Consumers demand a better way to shop online without sacrificing sustainability or quality. The brands that will thrive are the ones listening to what their customers want.”
In addition to sustainability, purpose has emerged as a key brand differentiator. “Everybody needs purpose and meaning in their lives. I think employees thrive on it, society expects it from us in business, and finally, if nothing else, purpose delivers growth,” says Debora Koyama, CMO for Europe for Mondelēz International. Scaling growth while staying true to purpose requires a delicate balance of innovation, strategic partnerships, and a steadfast commitment to core values. In e-commerce, leveraging technology to expand reach while maintaining sustainable practices and ethical standards.
“For our brand, embracing sustainability and scaling growth involves strategic investments in technology and infrastructure to streamline operations and enhance customer experiences. Whether it’s implementing advanced supply chain management systems or leveraging data analytics for personalized marketing, technology enables sustainable growth without compromising on purpose,” says Liak.
Moreover, strategic partnerships play a vital role in scaling growth sustainably. By collaborating with like-minded organizations, whether eco-conscious suppliers or ethical manufacturers, brands can amplify their impact and reach new markets while staying true to their purpose. These partnerships expand the brand’s footprint and contribute to a larger ecosystem of sustainability and social responsibility.
Vertical integration is “a strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers,” according to Investopedia. This strategy can help companies stay competitive and maintain a low cost to retail. “While conventional wisdom might say that owning manufacturing is more trouble than it’s worth, and that outsourcing manufacturing to third parties is more efficient, vertical integration in fact offers a whole host of competitive advantages allowing retailers to get ahead,” explains Elliott Goldstein for The MBS Group.
As we look ahead, the future of e-commerce lies in sustainability and purpose-driven branding. “Vertical integration serves as the foundation for this transformation, enabling brands to uphold ethical standards and environmental practices while delivering value to consumers. By scaling growth sustainably, organizations can expand their reach and influence without compromising their core values,” says Liak.
By embracing vertical integration and scaling growth sustainably, organizations can not only thrive in the marketplace but also make a positive impact on society and the planet. It’s time for e-commerce to sell products and inspire change and drive meaningful progress for generations to come.
One Community. Many Voices. Create a free account to share your thoughts.
Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.
In order to do so, please follow the posting rules in our site’s Terms of Service. We’ve summarized some of those key rules below. Simply put, keep it civil.
Your post will be rejected if we notice that it seems to contain:
User accounts will be blocked if we notice or believe that users are engaged in:
So, how can you be a power user?
Thanks for reading our community guidelines. Please read the full list of posting rules found in our site’s Terms of Service.