Sustainability and purpose-driven branding are the future of e-commerce

There is no doubt that e-commerce is the driving force of the economy. According to Doofinder reports, there will be over 26.5 million e-commerce brands operating worldwide in 2024, with over half of them coming from the US. These millions of e-commerce companies will serve nearly 3 billion people around the world in 2024, for whom shopping online is more accessible and often cheaper than browsing in stores, according to Oberlo.

While online shopping provides consumers with convenience and discounts, it is not without its drawbacks, especially environmental concerns. That’s why sustainability has become a key growth driver for many e-commerce companies looking to take a more purposeful and sustainable approach to their business.

Creation of a sustainable e-commerce brand

People love comfort. But they also love the environment and, perhaps surprisingly, are aware of the impact their online shopping habits have on it. According to Statista, one-third of American consumers would delay their delivery by five days if they felt encouraged to do so, and even more would be willing to combine orders to reduce emissions.

“Today’s online consumers want convenience, but they also recognize the cost of that convenience when it comes to the environment. That is why they are actively looking for companies that focus on sustainability,” says Sabrina Liak, co-founder and CFO of KITS. This Canadian brand is one of the fastest growing eye care retailers in North America. “Consumers are demanding a better way to shop online without sacrificing sustainability and quality. The brands that will succeed are those that listen to the needs of their customers.

Scaling growth while staying focused on your goal

In addition to sustainability, purpose has become a key brand differentiator. “Everyone needs purpose and meaning in their lives. I think employees thrive on it, society expects it of us in business and, finally, if nothing else, purpose ensures growth,” says Debora Koyama, CMO for Europe at Mondelēz International. Scaling growth while meeting goals requires a delicate balance of innovation, strategic partnerships and an unwavering commitment to core values. E-commerce uses technology to expand reach while maintaining sustainable practices and ethical standards.

“For our brand, sustainability and scaling growth come with strategic investments in technology and infrastructure to streamline operations and improve customer experiences. Whether it’s implementing advanced supply chain management systems or using data analytics for personalized marketing, technology enables sustainability without compromising on purpose,” says Liak.

Moreover, strategic partnerships play a key role in sustainably increasing growth. By partnering with like-minded organizations, whether eco-conscious suppliers or ethical manufacturers, brands can amplify their influence and reach new markets while staying true to their purpose. These partnerships expand the brand’s reach and contribute to a larger ecosystem of sustainability and social responsibility.

Vertical integration is key for purpose-driven brands

According to Investopedia, vertical integration is “a strategy that allows a company to streamline its operations by taking direct responsibility for various stages of the production process, rather than relying on outside contractors or suppliers.” This strategy can help companies stay competitive and keep retail costs low. “While conventional wisdom might argue that having your own production is more trouble than good and that outsourcing production to third parties is more efficient, vertical integration actually offers a whole host of competitive advantages that can help retailers gain an advantage,” explains Elliott Goldstein for The MBS Group.

Embracing the future of e-commerce

Looking ahead, the future of e-commerce lies in sustainability and purpose-driven branding. “Vertical integration underpins this transformation, enabling brands to adhere to ethical standards and environmental practices while delivering value to consumers. By scaling sustainably, organizations can expand their reach and influence without compromising their core values,” says Liak.

By leveraging vertical integration and sustainable growth scaling, organizations can not only thrive in the marketplace but also make a positive impact on society and the planet. It’s time for e-commerce to sell products, inspire change and deliver meaningful progress for future generations.