Sustainable packaging is a buzzword in ecommerce and logistics, and for good reason. Ensuring your delivery packaging is eco-friendly is not only good for the environment, but it is also encourages increased brand loyalty as the impact ecommerce is having on our environment is creating more and more wariness in consumers. Whilst the ‘green approach’ was gaining momentum this time two years ago, the panic of the pandemic and the issues surrounding supply chains meant that retailers and sellers became less concerned with packaging, and more concerned with ensuring they had enough stock to keep up with the massive increase in demand. However, as the pandemic begins to tail-off, those who turn their focus back to the sustainability of their operations quickest stand to gain the most.
Why Is Sustainable Packaging Important?
The most obvious answer is the impact that non-biodegradable plastic can have on the environment. In the UK alone, research found that supermarkets used around 900,000 tonnes of plastic packaging in 2019. This, coupled with the fact that UK homes recycle plastic far less than they do metal or cardboard, is a huge issue.
On top of this, it can be a massive waste of money to your company. Spending endlessly on packaging that can only be used once is not financially beneficial. This is likely why many companies are now looking into ways of reusing their packaging, to get more value for their money.
The Other Benefits Of Sustainable Packaging
However, it is not only the environment that you should be considering. By adopting a more eco-friendly approach to your packaging, you will almost certainly gain more brand loyalty and awareness.
Surveys of USA consumers have shown that 70% consider sustainability important and 47% even went as far to say they would spend up to 25% extra on a product if it was sustainable.
Clearly, consumers are concerned about their carbon footprint and will bear this in mind when making decisions on what products to buy. As the ecommerce industry becomes more crowded by the day, little changes such as the sustainability of your products and packaging can really make you stand out.
One of the easiest ways to reduce the amount of waste resulting from your packaging is simply to use smaller packages. By doing this, you will likely save storage space and money on shipping costs. The lower fees at customs will certainly add up quickly.
Some Examples You Should Consider
We’ve already mentioned using smaller packaging, but there are other ways of ensuring your packaging is more sustainable. The most obvious way is to change the material of your packages. Whilst options were limited in the past, sellers now have access to more material options than ever before. Whether it be recycled material, plant based materials, or even edible ones, there are a lot of materials that you can use instead of plastic.
There are even less drastic steps you can take. Many vendors use too much packaging throughout the supply chain when moving their products from A-B. Take a look at your own products; do you really need the package to be double-wrapped and bundled up? Reducing the layers around your product is an easy way to make yourself more sustainable immediately.
Another easy way for you to make your operations more sustainable is to educate your consumers. You can do this through brand messaging on social media or even in the form of instructions on the packaging, but just ensure you are making it easy for your consumers to recycle or reuse your packaging.
The Imminent Plastic Tax Makes Sustainability Even More Urgent
UK sellers should be even more eager to reduce the amount of plastic used in their packaging as April 2022 will see the introduction of the new Plastic Packaging Tax. The government have said of the tax:
“The aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.”
This will surely act as an extra incentive for UK merchants. Find out more about the incoming plastic tax by following the link.
Should you require any assistance, don’t forget that our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we offer expert advice when it comes to your processes.
Please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today for our support with all your tax needs or logistic support. In addition to our logistic and ecommerce services, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
