Transparent Sustainable Marketing and Why it’s Important For Shopify Businesses

Change is in the air and environmentally aware brands are looking for a fresh new approach to marketing. Learn more about transparent sustainable marketing and how e-commerce brands can make a difference…

It’s never been easier or more cost-effective to set up an online store, especially if you use a platform like Shopify. While great news for business opportunities, this can have a high cost for the environment. The swelling rate of overconsumption damages our health, our environment and our planet, and e-commerce is feeding this unprecedented problem.

Ecommerce as we know it today began in 1997 with Amazon and Ebay, and since then has become the fastest growing segment in retail. The COVID-19 pandemic has seen more consumers shop online, and ecommerce sales are projected to grow by about 20% in 2020

But as ecommerce grows, so does its impact on the planet. The way a product is made, packaged, fulfilled and shipped to the customer can have damaging effects on our environment. Packing puffs and bubble wrap don't just disappear after use. And then there’s the impact of shipping the products to shoppers and the afterlife of a product. 

We shouldn’t be fooled by the term ‘Free returns’. Once items are returned, which has been increasing due to COVID 19 lockdown periods, some companies find it more cost effective to dispose of the products instead of reselling them. This has resulted in huge piles of mainly defect-free products in a landfill every year. Maybe the term ‘free shipping’ feels wrong when it has such a high cost on the environment.

Every visit and purchase to an online store is zapping energy from the earth. The internet which powers an ecommerce store is also hugely damaging to the planet. Energy used for data centres, telecoms and consumer devices like phones and laptops all make a difference. 

But it’s not all doom and gloom — we promise! When used the right way, ecommerce can form an eco-friendly retail option.

Enter Sustainable Marketing...

Sustainable marketing is the promotion of products that are: 

  • environmentally and socially responsible
  • have ethical practices
  • hold transparent brand values 

It’s when a consumer is ‘persuaded’ to purchase a product based on its origin - who made it, where it was made and how e.g. “this product is made from recycled bottles”. 

Sustainable marketing can be as simple as the retailer making it known that they donate a certain percentage of sales to a charity or not-for-profit.

Why is Sustainable Marketing So Important to Consumers and How Can Brands Respond?

Sustainable marketing is a response to the increasing demands of consumers who want to shop sustainably. From a consumer’s perspective, it’s about being able to recognise exactly what a brand is doing to fight the climate crisis through transparent and honest marketing.

Consumers’ Ethics and Actions

Consumers worldwide are becoming increasingly eager to fight the climate crisis through their purchasing decisions. It's no longer just about saving the planet for future generations, it’s about our current health and the health of our children. Health issues such as asthma and typhoid have been linked to deteriorating air and water quality

However, there is a gap between consumers' sustainability values and their actions. In a 2019 study of 25,000 people over 25 countries, 54% of people said that living sustainably is a major priority for them, but only 37% said they currently live this way. 

So what’s causing this gap? Predominantly, it comes down to transparency and cost. In fact, almost 20% of executives highlighted that one of the top three biggest factors that attracts consumers to their brand is transparency. But consumers don’t just need transparency, one of the biggest barriers people found to living sustainably was the cost, particularly for respondents aged 18-24. Maybe if consumers are shown (through sustainable marketing) that sustainable, quality products can last much longer than the alternative then price may be viewed as less of an obstacle.

Where Can Brands Begin Their Journey to Sustainable Marketing?

Merchants who want to be part of the world of sustainability can use Shopify’s platform as a springboard for transparent and sustainable marketing practices. Shopify is carbon neutral and champions the world of sustainable marketing in ecommerce. As part of their commitment to reversing climate change, Shopify's Sustainability Fund invests $5 million every year in industries, emerging technologies and pilot projects that work to save the planet.

An Honest Sustainable Brand 

Sustainability isn’t the same as transparency. You need to seriously work towards sustainable practices first, and be transparent about it second. Brands need to be careful not to enter the “greenwashing” zone.

Sustainable marketing is about brands taking responsibility for their environmental impact and incorporating sustainable ethics into their entire business operations. It may sound overwhelming but breaking it down into small simple steps can be a good way to start.

Begin with a business plan review and look at the role sustainability plays in your core business goals, then plan how this can be put into action and made visible to your consumers. Lean into strengths and make new plans to fix your weak points.

Consider the environmental impacts of:

  • Products and services (the carbon footprint of materials, resources and products ending up in landfill)
  • Packaging and shipping (is it as eco friendly as it can be?)
  • Policies and systems (e.g. reflect on numbers of returns or lost parcels)
  • Electricity usage/your website or platform (look at customer usage and employees’ usage)

As a simple first step, consider using Shopify’s innovative Shop app which enables customers to offset carbon emissions for free, and simplifies the shopping process to minimize mistakes and returns. The Shop app makes the merchant’s carbon footprint smaller while enabling customers to browse recommended retailers, keeping sustainable brands easily accessible in one green space.

How to Use Transparent Marketing for Positive Change

If a brand doesn’t clearly communicate its sustainability strategies and activities to customers, partners and the public, it could lose sales and miss out on major contracts to supply to global firms. Transparent marketing boosts confidence in consumers and helps them to trust in their purchasing decisions — knowing they are aligned to their personal values and the fight against climate change.

Ready to Get Started on Your Journey to Sustainable Marketing? Here are a few actionable tips to communicate sustainable practices and ethics:

Products and Packaging

To make a change brands should swap existing products or product materials for eco- friendly alternatives and work only with manufacturers who are local and as sustainable as possible. The same goes for the packaging, using minimal or recyclable and biodegradable packaging is a simple way to send the right message. Thankfully there are simple solutions such as environmentally conscious packaging made by betterpackaging.com and alternatives to packing puffs and Styrofoam.

To make it clear that products or packaging have the health of our planet at their heart, brands should detail this on their website, product listings, the checkout and on the package or product itself. In addition to this, it should be clear where the product is made, how long it should last and how packaging or products can be recycled, re-used or composted.

Circular Movement

The circular movement is helping to cut waste and minimise the negative impact of retail. Ecommerce brands can look to the three principles of the Circular economy. This is a great way to design out waste and pollution, keep products in use, and regenerate natural systems by using renewable energy.

One way to promote a circular movement is to keep products in use. The used product market is growing 21 times faster than traditional retail, showing that consumers are already re-selling products. When it comes to re-using, repurposing and reselling products, brands need to support consumers to do the right thing. Shopify merchants can use apps like Recurate to further stimulate the circular economy by promoting the resale of their products. 

Power of Choice

To give consumers the power of choice requires open communication about how their purchase decisions will impact the environment, enabling them to make decisions that are right for them. 

For example, making customers aware of the environmental and social impacts of fast deliveries makes it more likely that they will pick the greener choice of standard shipping. Merchants can go a step further and offer even greener choices for consumers by focusing on local deliveries by foot or bike. 

Measure and Share your Impact

Measuring a brand’s impact on the planet is an essential part of sustainable transparent marketing. A brand that can measure its environmental impact is a brand that holds itself accountable, looks to continually improve and works to share its journey and efforts with consumers. Brands can’t grow or share their achievements if they have no clear reference points.

Brands can measure and share their fight against climate change with the GreenStory app. GreenStory provides an analysis of supply-chain sustainability through informative graphics and marketing strategies, and can be integrated into an e-commerce store so that impact is seen by consumers. 

Transparency Creates Ripples of Hope

The complex issue of climate change holds the attention of consumers and brands. It is a messy issue but when progress is made visible, it sends ripples of hope into an ever-growing conscious community. Conscious consumerism is the future, and brands that don’t make changes will be left behind.

“One way or another, your actions will determine your fate, not mine. I am nature. I will go on. I am prepared to evolve. Are you?”

- Conservation International.

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