Bizrate Insights data suggests 73% of shoppers prioritize sustainable shipping when making online purchases. 

It’s known as values-driven ecommerce. In today’s world, customers have more choices than ever. And given the option, they don’t want to make choices that might harm the environment. That’s why customers are gravitating towards sustainable materials and eco-friendly shipping to reduce their impact on the environment. 

Competing with big-box retailers on variables like speed and affordability is difficult for any small business. But eco-friendly shipping is different. It gives consumers a reason to spend more — or possibly wait a little longer. Even with Amazon shipping 1.6 million packages daily, is there a way small businesses can compete by adding eco-friendly shipping? The answers might surprise you.


The Rise of Values-Driven Shopping

Values-driven consumers are making their priorities clear these days. As we noted in Values-Driven Commerce, 33% of shoppers actively seek out eco-friendly retailers, and 14% are willing to pay more to select sustainable options.

This rise isn’t a passing fad, either. Younger shoppers (ages 18-39) are especially motivated by the desire for sustainable products and shipping. This suggests that the next generation’s affluent purchasers will prioritize eco-friendly living. 

This is a unique opportunity for small-to-medium-sized businesses (SMBs). It’s rare to find customers willing to pay more for shipping. As a general rule, free or affordable shipping is a major incentive for purchasing online. And big-box retailers have already mastered logistics to offer free shipping to millions, making it hard for SMBs to compete.

But with values-driven shopping, many customers are willing to pay a premium for an experience that has less of an impact on the environment. For the SMB without a fleet of delivery trucks at their disposal, offering eco-friendly shipping in ecommerce becomes a way to differentiate your products and command more online sales. It’s how you can please an ever-increasing population of environmentally conscious consumers.


Eco-Friendly Shipping as a Competitive Edge

There’s no getting around it. Big retailers have lots of trucks, planes, and big-budget resources. They can leverage these resources to deliver the kind of fast, reliable shipping that customers love.

But customers love other things, too, including sustainability. That’s why SMBs can use eco-friendly shipping as a differentiator. While larger retailers focus on speed, small businesses don’t necessarily have to spend more for faster delivery and more exquisite packaging. 

48% of shoppers want free same-day delivery. There’s a reason big-box retailers focus on speed: it encourages a lot of customers to click “buy now.” But with 20% of shoppers wanting sustainable packaging, there’s an opportunity for SMBs to focus on a subset of consumers who want a more specialized experience. As we noted in Looking Through the Online Shopper’s Logistical Lens, 14% of shoppers want sustainable delivery options in addition to sustainable packaging.

The sustainable packaging market is surprisingly large: $266.4 billion in 2023, potentially surpassing over half a trillion dollars by 2033. Packaging made from eco-friendly materials like seaweed, mushrooms, and cornstarch can make nice novelty options. However, we found that for most customers, recycled cardboard and paper were the most popular (64% preferred it), with biodegradable and recycled plastics up next (43%).


Practical Steps for SMBs to Implement Eco-Friendly Shipping

How can SMBs turn the sustainability boom into a decisive advantage against the bigger retailers? You have a few options to consider:

  • Offer sustainable packaging. Transition to biodegradable or recycled materials. This not only hits consumers’ preferred sustainable packaging materials, but addresses the packaging concerns that 40% of shoppers have, according to our Values-Driven ecommerce Survey. Although alternative packaging materials like cornstarch and corrugated bubble wrap can also work, our survey showed they were less popular with customers than plain old, recycled cardboard and paper.

  • Offer carbon-neutral shipping. Do you have a carbon offset program? If not, consider adding one to your shipping page. Highlight it as a major selling point. 50% of younger shoppers monitor environmental impact, according to our Logistics Shopper Insights. A badge that indicates your order comes with complimentary carbon-neutral shipping can potentially sway their buying decision.

  • Add flexible shipping options. Consumers enjoy sustainability, but they also like having control. So, give them options. Work with local fulfillment centers or green last-mile delivery providers to see if there are ways to reduce emissions if you’re offering speedier, more convenient delivery methods. Younger shoppers still value flexibility with what they order online. Being flexible enough to offer eco-friendly options — without insisting on seaweed packaging — can help you cast a wider net.


Communicating Green Initiatives to Consumers

Sustainability is one thing, but customers must know what options you offer. That’s why transparency will be critical. For their part, consumers are interested. Nearly half of consumers say they always consider a retailer’s values when purchasing. If you want your SMB to have a decisive advantage over bigger retailers, you’ll need to communicate your sustainable practices on product pages.

But don’t stop there. Mention your eco-friendly priorities in promotional emails. Highlight it every so often on social media. Include any verification badges that attract eco-conscious buyers. Add a section to your website that highlights all your shipping options while pointing out why your company makes environmentally conscious shipping a priority. 

And don’t forget about the checkout page. Promote eco-friendly shipping at checkout, including detailed information about any carbon offsets or green packaging. This will help you satisfy the 31% of shoppers who prioritize transparency in how you handle your logistics.


An Eco-Friendly Way To Compete with the Big-Time Shippers

Eco-friendly shipping isn’t every customer’s priority — but it’s a rising trend that can give your SMB a distinct advantage over retailers who emphasize shipping speed at all costs. With transparent, carbon-neutral shipping, you can attract those value-driven consumers who are becoming an increasing presence in the marketplace. Even better, you’ll start to adopt logistics habits that help make your company a positive influence on the world. And if it helps you make a few sales? That never hurts, either.

Bizrate Insights can help you gather the voice-of-customer data you need to make informed decisions about sustainable shipping initiatives. Schedule a demo today.