Data Shows Consumer Demand for Brands to Ship Green

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As the post-pandemic retail landscape continues to evolve, 2023 promises big things on the consumer spending front. Consumerspending is expected to grow 2%, and more than 265 million consumers are estimated to be shopping online this year, accounting for nearly 21% of purchases in 2023 and increasing to 23% by 2025. Online holiday shopping this past holiday season was slated to account for nearly $210 billion (Adobe Analytics 2022 Holiday Shopping Forecast),squarely dispelling any lingering doubt about the future of ecommerce. 

As consumers click, buy and tee up goods for delivery to their front doors, many of them are considering the environmental impact associated with the delivery of their purchases. In fact, data from a recent survey of 1,000 U.S. adults reveals that more than 2/3 of consumers (70%) have considered the environmental impact of package delivery, and 42% are more concerned now than last year (Merchants Fleet 2022 Consumer Shipping Survey). 

Ship Green and Win

Brands today are called to bolster their commitment to sustainability. Heightened focus on adherence to environmental, social and governance (ESG) standards span all sectors and, for retailers, extend right out to the very last mile – package delivery to front doorsteps. With competition for recession-strained share of wallet at an all-time high, heeding the call for green delivery could be the bottom-lineboost retailers needed this year

The data shows where shoppers stand on sustainable shipping. While 55% of consumers planned to order more goods online this past holiday season, 56% would consider buying more online if they knew shipments would be delivered by electric vehicle. Even more – 60% – say environmental impact at least somewhat influences their decision to have packages shipped (Merchants Fleet Shipping Survey).

EVs as a Differentiator

With billions of dollars at stake, online retailers and the delivery fleets that support them must look to integrate andexpand the use of electric vehicles. Survey results reveal that 54% of consumers would like to see delivery fleets transition from gas-powered vehicles to electric vehicles, and given a choice, 48% would select one package carrier over another if they knew only one would deliver by electric vehicle. 

Even further bolstering the customer perspective, 40% of respondents would pay a small premium to ensure packages are delivered by electric vehicle.While this shines a light on theimportance of EV integration for ecommerce companies and package delivery carriers, there is an important hurdle to overcome when it comes to EV adoption

Overcoming Supply Chain Pain

Continued supply chain disruptions and the shortage of semiconductors have significantly impacted not only the consumer automotive sector but also commercial vehicle availability.Even for companies already committed to sustainable delivery, access to electric vehicles is limited; estimates suggest up to 10% of demand for EVs will be unmet. Implementation and management of the necessary infrastructure required to effectively operationalize a new or expanded fleet of EVs poses further challenges. 

Leveraging a Fleet Management Company is one way companies can overcome the barriers to EV adoption while keeping an eye firmly on the prize – maximizing holiday shoppingrevenue. By turning over to a trusted partner and vehicle management expert the procurement and management of green fleet assets, retailers and package carriers can focus on what they do best, while also meeting customer expectations – this holiday season and beyond. 

Together, we can give new meaning to “go green and win.”

Brendan P. Keegan
Brendan P. Keegan is the Chairman, CEO & President of Merchants Fleet, the fastest-growing fleet technology company in North America. He is an award-winning 6-time president and chief executive officer having raised nearly $3B in capital and returned over $6B to investors. Brendan has experience in business transformation, capital raises, strategy development, revenue growth, operational scale, technology enablement, and enterprise value creation with successful liquidity exits.

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