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E-com cuts CO₂ emissions up to 88% compared to physical retail: Report

21 May '25
3 min read
E-com cuts CO₂ emissions up to 88% compared to physical retail: Report
Pic: Shutterstock

Insights

  • A new study from Amazon Sweden shows that smart, well-managed e-commerce can cut CO₂ emissions by up to 88 per cent per purchase compared to physical retail.
  • It reduces car trips, uses greener delivery vehicles, and offers closer pickup points—especially benefitting rural areas.
  • While not replacing stores, e-commerce complements them and presents a major opportunity to lower emissions.
E-commerce offers significant environmental benefits over traditional retail. On average, it results in 81–88 per cent lower CO2 emissions per purchase compared to physical store visits. For a typical Amazon customer, this shift leads to 2–3 fewer in-store trips per month, reducing the overall transportation footprint. Rural and suburban consumers especially benefit, with driving distances cut by 76–84 per cent, thanks to the efficiency of centralised delivery networks—benefits confirmed by a new study from Amazon Sweden, which offers clear evidence that smart, well-managed e-commerce can significantly reduce emissions by lowering car use and optimising last-mile delivery.

The study, conducted by analysis firm Makrologik in collaboration with Amazon Sweden, carrier PostNord, bookstore Adlibris, and online pharmacy MEDS, combined detailed transport and sales data with survey responses from over 1,800 Swedish consumers. Together, these partners represent some of the largest and most influential players in Swedish commerce, offering a broad and realistic picture of how modern e-commerce operates.

E-commerce doesn't just change how people shop, it also transforms how goods move through society, replacing many private car trips with consolidated, often electric, delivery routes. It tends to reduce emissions and increase efficiency through several key factors. First, people typically order more items per online purchase than they would in-store, resulting in bigger baskets and fewer trips overall. Second, professional logistics teams use advanced tools and incentives to optimise deliveries, consolidating shipments across multiple households. Third, the vehicles used for e-commerce deliveries are often greener—nearly three out of four deliveries in Sweden are made using electric or bio-fuelled vehicles, compared to just one in five private cars. Finally, for many customers, especially those outside urban centres, delivery lockers and pickup points are actually closer than the nearest physical store.

The study does not suggest a world without physical stores; many consumers enjoy and rely on them, and many sellers use multiple channels to reach customers. But it does suggest that e-commerce plays a critical role in complementing traditional retail, especially for rural communities, busy households, or those needing access to a wider range of products.

One of the most eye-opening findings is that 60 per cent of surveyed consumers said they would shop online more often if they knew it was better for the environment. That tells there’s still a perception gap and a real opportunity to raise awareness around how thoughtful, modern e-commerce can help drive the transition to a lower-carbon economy.

ALCHEMPro News Desk (RR)

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