Here's How You Can Make Your DTC Business More Sustainable ♻️

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📆 Friday, 27th October 2023

Hi, and welcome back to Growth Espresso - Your one-stop destination for 👏 all things 👏 DTC

Today, we talk sustainability ☘️ and what steps you can take to make your DTC e-commerce eco-friendly while not compromising on business.

In fact, this Forbes research reveals that consumers across all generations—from Baby Boomers to Gen Z—are now willing to spend more for sustainable products with nearly 90% of Gen X consumers saying that they would be willing to spend an extra 10% or more for sustainable products.

All that, coming right up in 5 ways to introduce sustainability into your DTC business 👇️ 

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Now, coming back to the topic

#1: Contribute sales to an eco-friendly cause

This initial step is likely the simplest to take! It immediately creates a positive impression with consumers during the checkout process and has no negative effects on your day-to-day business operations.

Whether you opt to contribute 1% of your yearly sales to support environmental nonprofits, as seen with the sparkling water brand Aura Bora, or allocate a portion of your earnings for tree planting initiatives, like the apparel brand Tentree, associating your brand with a larger purpose will leave customers with a sense of satisfaction about their purchases.

#2: Carbon audit and CO2 offsetting

E-commerce companies can reduce their environmental impact by measuring their greenhouse gas emissions, which is called a carbon audit. If they can't reduce emissions further, they can balance things out through CO2 offsetting.

To simplify the process, it's a good idea to get help from experienced environmental experts who can determine the exact amount of CO2 you need to offset and suggest ways to reduce it.

After calculating emissions, the next step is carbon offsetting. This means you compensate for your emissions by funding eco-friendly projects. To become carbon neutral, you buy carbon credits from projects like Pachama.

You can either factor credits into your product pricing or allow your customers to opt into the program during the checkout process (it generally adds $1-2 extra to their order).

#3: Reduce returns

Returning goods not only means losing money but also an increased carbon footprint caused by transporting items back to the warehouse. This is particularly a problem in fashion and apparel industries where consumers return because of two primary reasons:

• They didn’t find the right fit for their clothing

• They didn’t like the product as it didn’t match their expectations

To address this, provide detailed product descriptions, realistic photographs, and size charts on your website. Alternatively, you can ask people their sizes when they’re dropping a review so other customers can get a reference.

#4: Eco-friendly packaging

Every order needs to be packaged to reach the customer safely. Estimates indicate that up to 30% of e-commerce’s carbon footprint comes from shipping packaging. Hence, it is worth considering greener solutions instead of single-use packaging. Many biodegradable, plant-based materials are available that decompose without harming the environment.

Opting for reusable packaging can also be a good option as it extends their life cycle. Packaging is often the customer’s first physical point of contact with a company. You can only make a good first impression once!

#5: Get on board with a recycling program

A lot of DTC companies are partnering with companies like TerraCycle. This allows customers to mail/drop off their used items in exchange for coupons and loyalty points. In early January, DTC sleepwear and bedding brand Lilysilk also launched a recycling program with TerraCycle. The Lilysilk X TerraCycle Recycling Program allows customers to send silk and cashmere products to be recycled.

Wendy Zhang, marketing lead at Lilysilk, says that the brand realized it needed a partner to go about such a program. “Sustainability is not a one-man show, and it’s hard for one brand to take on,” Zhang said. It’s why the company sought out professional help to break down and recycle the material efficiently. Similarly, DTC brand Bombas will send you a Take Back Bag that holds up to 10 lbs of clothing; when you mail your used items you get a $10 credit!