With climate change and its devastating consequences, consumers have realized the importance of their purchases and their impact on the environment. They have become increasingly aware of the urgency of making sustainable purchasing decisions. In response to these changes in customer preferences, companies began to develop their products in accordance with environmental standards.
Today companies are striving to reduce their environmental impact, reduce carbon emissions and ecological footprint. As a result, Green trade is becoming the subject of increasing global attention. In this article we will explore the world of green trade, understand its concept, benefits, the main strategies for its application, as well as some inspiring examples.
Let's start exploring this exciting field, there is no doubt that a lot of opportunities and challenges await us.
What is green trading
Green trading is a type of business that takes into account sustainability and environmental dimensions while conducting business activities. Hence, it is pursuing more environmentally friendly options in shipping, packing and selling methods.
It has become clear that there is a general trend in the market for environmentally friendly products. Thus, companies began to switch to Green trade to attract many environmentally interested customers.
Advantages of green trade
Green trading is more than just a trend that will take time and then wane. It's a reaction to a crucial issue that people are starting to care about, which is climate change. Therefore, there are a lot of advantages of green trading that we will highlight in the coming paragraphs.
1-attract more customers
In the last couple of years, it has become noticeable that customers are buying from brands that correspond to their values and advocate a common cause. This can be strongly linked to Generation Z and its impact on companies. They are constantly looking for sustainable alternatives as part of their environmental responsibility.
Accordingly, highlighting the focus of your business on sustainability and its role in the environment will enable your ecommerce business to gain more customers. And most importantly, these customers will eventually become loyal customers.
2-a good marketing tool
Your sustainable practices through green trade can be an ideal marketing tool to promote your business. All you have to do is showcase your eco-friendly practices to customers.
This will resonate with environmentally conscious consumers and will enable your e-commerce to stand out among competitors. Hence, you will gain a competitive advantage and position your online store as one of the industry leaders.
In addition, this will open up more opportunities, cooperation and markets for your e-commerce. So, it's a win-win situation. You have a positive impact on the environment and also grow your business.
3-Reduce Costs
By adopting more efficient and sustainable practices, you are addressing a critical aspect-cost reduction. Reducing energy consumption, recycling products and sustainable packaging increase productivity, increase efficiency and reduce costs.
But it is worth remembering that starting with environmentally friendly practices for your e-commerce may cost you a little. However, in the long run, it will save you money and reduce costs.
To convince you even more, it turns out that 33% of companies use sustainability strategies as a way to increase efficiency by reducing costs (BusinessDIT, 2023).
4-generates more sales
Initially, Forbes magazine stated that 87% of customers would buy a product if it had a positive social or environmental impact.
Similarly, a study by Accenture (2019) stated that 81% of respondents expect to buy more environmentally friendly products in the next five years.
So, these studies indicate that the orientation towards green trade will contribute to increased sales and certainly more profits.
Customers are already looking for environmentally friendly alternatives. Hence, embarking on such a global demand will be beneficial for your e-commerce by increasing sales.
5-a better brand image
Trust us when we tell you that there is no better way to build a better brand image than to advocate for a cause, and in our case, it is sustainability.
In general, companies that adopt environmentally friendly practices are perceived by customers as ethical and responsible. Hence, having a green e-commerce that uses consistent and sustainable practices builds an improved brand identity and image.
As a result, they become the best choice for customers in the industry. In addition, you will be able to gain more customers and enhance the loyalty of your existing customers.
A study conducted by Forbes magazine showed that 88% of customers are loyal to companies that support environmental issues.
This strong customer base can act as brand advocates to promote your brand and its practices. Thus generating a positive word and building a better brand image.
The best strategies for Green trading
Now you are familiar with the advantages and examples, it's time to implement. Hence, we will review the best strategies to start working on for your green business.
1-switching to renewable energy
First of all, the transition to renewable energy is the basic strategy of green trade. This can be done by switching to more environmentally friendly energy sources such as solar or wind energy. Accordingly, this will contribute to reducing your carbon footprint.
2-adoption of sustainable supply chains
In any business, its supply chain is crucial not only for its success but also for its path to sustainability.
Therefore, one of the key practices is the adoption of sustainable supply chains. This means collaborating with suppliers who share the same environmentally friendly vision. Your supply chain does not stop at this point; it continues to manage inventory and shipping.
As a result, you have to ensure sustainable practices at all steps within your supply chain to reduce carbon emissions as much as possible.
3-production of sustainable products
Needless to say, one of the main practices of green trade is the production of sustainable products. For example, products with less harmful ingredients and more sustainable materials.
This ensures that your negative impact on the environment is minimized. In addition, it resonates with customers by positioning your brand as a sustainable one. They also offer them more sustainable alternatives.
4-Consider lower emission charging options
Your shipping methods can significantly contribute to increased carbon emissions, especially with long shipping routes. Accordingly, companies have to embark on such an issue by considering lower-emission shipping options.
For example, they can ship in bulk and not individually, or they can provide customers with green shipping options. This means longer charging times but with less negative impact on the environment.
It is also necessary to deal with a logistics company that has the same core values as yours to be on the same page and follow similar procedures.
5. use environmentally friendly packaging
Here comes one of the most important strategies, which is to use environmentally friendly packaging that can be easily recycled or biodegradable.
Your packaging is the first thing that consumers see from your brand, sometimes even before the product. Not to mention that consumers are becoming more aware of the importance of sustainable packaging than ever before.
Hence, the use of environmentally friendly packaging provides a positive image of your brand and indicates that you are an environmentally focused company. It also positively affects the environment by reducing waste and carbon footprint.
6-promote recycling and waste management
Recycling can be a real gem and a vital strategy for Green trade. Accordingly, it is necessary to promote recycling procedures and ethical waste management. This will ensure that companies minimize their environmental impact. In addition, it shows the environmental responsibility of companies to the environment.
You can create a program that encourages customers to recycle the packaging of your product in exchange for redeemable points, for example. You can also motivate customers to return their unused products to be recycled next to you.
Examples of the most famous brands destined for Green trade
1. IKEA
IKEA never fails to impress us with its products and even with its green business practices. It is fully dependent on renewable energy while reducing its gas emissions.
All its raw materials come from sustainably managed forests. In addition, its cotton is compliant with strict standards, which leads to less water and energy consumption. 60% of IKEA products are made from renewable materials (Boldist, 2023).
And green business practices don't stop there. IKEA supports recycling programs and motivates customers to follow the path of sustainability by adopting energy-efficient products.
2. Nike
Nike leads the green trade with its various environmentally friendly practices. In addition, she highlights her efforts in her marketing campaigns to communicate her vision to customers.
As we talk about Nike's focus on sustainability, we have to address its “move to Zero”initiative. It is considered a reaction to climate change and a way for Nike to reach a zero carbon and waste level to protect the sports industry.
Accordingly, it has removed all single-use plastics in all its buildings. In addition, it has collaborated in various efforts to reduce its environmental footprint and catalyze industry change.
Nike has switched to using 100% renewable energy in production. It also sells 50% recycled clothing, and one of its lines is based on sustainable materials such as recycled polyester.
3 - The Body Shop
The eyes of consumers are always turning towards beauty product brands and their manufacturing practices, especially those related to animal experiments.
Accordingly, the body shop has made sure to address this crucial dimension and follow the green trade laws. She constantly highlights the development of cruelty-free products that do not involve animal testing.
Not to mention the brand's inclination towards the use of renewable energy. It also relies on plant-based ingredients in the majority of its products, which make up 60% of its products (Givz, 2022).
In the end
All signs point to a global consumer shift towards green trade. Accordingly, the integration of green practices is no longer an option.
If you are seeking to outperform the competition by gaining a competitive advantage, Green trading can be a place to start from.
However, following Green trade practices does not mean neglecting basic e-commerce practices. You still have to automatically segment your audience, work on automated advertising, make relevant product recommendations, and integrate a powerful email marketing tool.
