The Waste Packaging Problem

The amount of global packaging waste has steadily increased with the number of e-commerce consumers, which has produced a significant strain on the environment. The Packaged Waste Predicament The twenty-first century could be considered the age of convenience. Consumers increasingly want what they want, exactly when they want it. While as a consumer, the increasing willingness of companies to provide convenience is, well convenient, it comes at a cost. The amount of global packaging waste has steadily increased with the number of e-commerce consumers, which has produced a significant strain on the environment. The Shipping Struggles of E-Commerce Prior to the rise of e-commerce, shipments were largely in bulk from supplier to retailer. However, as e-commerce sales have increased, so to have individualized orders. While one of the issues with individualized shipments lies in the individualized rather than bulk orders, it’s not the only problem. E-commerce orders also increase the retail supply chain by requiring 4X as many touchpoints. This means that rather than 5 points of handling between producer, distributor, retailer, and consumer, there are 20 points of contact between producer and consumer. On average, a package is dropped 17 times prior to arriving at the final destination and this increases with every added touchpoint. This predisposition to damage is why online retailers such as Amazon began packaging small boxes inside bigger boxes surrounded by air-filled plastic bags – and this type of wasteful packaging is what prompted consumer concern. Damage to the Environment Given the current rate of plastic disposal, it is predicted that by 2025, there will be one tonne of plastic for every three tonnes of fish in the ocean. As if that prediction isn’t troubling enough, the UN has predicted that by 2050 there will actually be more plastic in the ocean than fish. These numbers represent the urgency with which the retail and manufacturing industries must re-evaluate their impact on the environment. Although rethinking packaging may not solve the packaged waste issue entirely, it’s certainly a step in the right direction. Fortunately, while consumers demand convenience, many also demand sustainability, which has prompted many retailers to rethink their packaging. For instance, Amazon has begun to utilize machine learning to group shipments, ship small items in cardboard envelopes, and opted to ship items in its original packaging when possible. Dell has also made changes to reduce its environmental impact. The company replaced its foam packing nuts with recyclable materials, which reduced packaging materials by 20M pounds and saved the company $18M USD in associated costs. Given the environmental and financial success of these efforts, Dell plans to become 100% sustainable by 2020. Although these shifts represent positive change, the industry continues to produce an extreme amount of waste, which has inspired a number of independent sustainable packaging companies. Some of these companies have developed reusable bags and provide prepaid return labels to promote their reuse, while others have developed recyclable alternatives to foam packing peanuts. A select few companies have also attempted to eliminate the need for interior packing alternatives altogether by utilizing smart technology to ship multi-item orders into the smallest package possible. It’s clear that the days of bulk shipments from supplier to retailer are quickly fading and individualized orders are taking its place. As consumers increasingly turn to convenience, the environment will ultimately pay the price. While e-commerce organizations and independent packaging companies have made steps toward sustainability, there is still room for improvement and all industries involved will need to step up to the plate to reduce their impact on the environment.

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