5 Best ESG Practices for all UK Dropship Sellers

Introduction

Discussions around ESG related topics have been a growing trend, with most of the talks mainly highlighting the influence that businesses have on the environment and society. The UK has particularly been quite vocal on the subject over the past few years, a discussion that has led to the development of ESG regulatory frameworks. Company groups are now mandated to produce a sustainability statement on climate-related disclosures in their annual strategic - energy and carbon reports. These are steps that truly reflect UK’s great commitment towards sustainability. Small businesses are no exception from this responsibility, subsequently triggering a trickledown effect to its smaller supply chain, including its drop shippers. Drop shippers, wanting to succeed in business should be conscious of these trends as they are able to promote themselves via the ESG route. Acknowledging the fact that ESG factors are inevitable and affect everyone, we would like to provide 5 tips you can use as a drop shipper to stay inline with ESG, whilst optimizing your service.

3Rs of Sustainability

We find it important to firstly highlight the key negative impacts (ESG related) that come with managing your drop shipping business. To a large extent, research shows that ecommerce business models (drop shipping included) largely create detrimental environmental impacts, particularly relating to certain business practices such as quicker delivery. Not to mention the concept of immediacy, free returns and increased packaging (the cardboard footprint challenge). Such commercial practices consequently lead to hazardous transportation emissions as well as enormous package waste, negative impacts that ultimately affect our ecological system.

Addressing the latter challenge – waste, experts often suggest among other variations, the application of the 3Rs sustainability framework. The concept generally details hierarchical steps organizations can take to generate minimum waste, an initiative that consequently protects the environment and conserves resources. The 3Rs include: reduce, reuse and recycle. We maintain that the 3R sustainability framework consequently surfaces as an excellent guiding framework to use in your drop shipping business, and as such, practices that effectively reflect use of the 3R approach could best suit your business.

1 Larger Order Grouping

Drop shipping is widely known to use fast-delivery strategies, approaches that unfortunately contribute to the increased release of carbon emissions. The problem is further amplified by the frequent delivery of small order quantities. As a drop shipper, you might encourage your environmentally conscious consumers to group their orders rather than conducting small frequent orders, a practice that can result in decreased vehicle demand and the consequent decline of emissions. This strategy not only promotes the reduction of environmental pollution, but also encourages your customers to purchase larger orders. Perhaps by offering bundle deals, package deals and kits/sets you can generate further revenue for the company whilst staying in line with ESG concerns. Running promotions like this that are ESG centered, often lead to people sharing your page – this is not only positive publicity but can also lead to more followers/customers.

2 Reducing your Order Return Rate

Largely an unavoidable process, however, the journey of a product from your supplier’s warehouse to your customer and then back again results in double levels of emission. Trying to minimize product returns can therefore be a helpful approach, particularly in addressing emission concerns as well as being an attractive sales goal. To aid with this, you should make sure that the information you provide about your products is consistently accurate, thorough, and up to date. Pictures and or demonstrations of your product should be clear and accurate as to not mislead or disappoint buyers. Such detailed material is more appealing to consumers since it clarifies all of their concerns and gives them a clearer concept of the nature of the goods. This results in less disappointment and confusion between the purchase made and the actual delivery. In the end you should be left with not only a 5 star review but also a returning customer, 0 returns hassle and less carbon emissions.

3 Encouraging the Recycling of Packages

Additionally, you might embrace behaviors that support the circular economy rather than mass, destructive consumerism, especially by encouraging your clients to recycle the packaging they get with shipments. Of course, aiming for zero packing seems impossible, especially since your company has to move items effectively and protect them from harm, while also keeping in mind that packaging offers a significant chance for branding. Nevertheless, reusing packaging can go a long way in alleviating negative environmental impacts linked to excessive waste. Maybe provide a tutorial to your buyers of how they could recycle your packaging or run a promotion for users who do #recycle. These features are things that you can use as marketing, to show the populations that your company is above the rest as you highlight care towards the environment.

4 Promotion and Sale of Long-Lasting Products

It is obvious that increasing a product's lifetime has a positive effect on the environment. Indeed, some experts suggest that the key to sustainable consumption is not only in the circular economy's emphasis on reuse and recycling, but rather in the expansion of product longevity. Promoting the use of long-lasting products contributes to cleaner air, less waste, and lower energy costs associated with manufacturing and transportation. Long-lasting products also offer better resale value (linking to recycling/second hand), a marketing advantage you could employ in your trading efforts.

5 Giving Back to the Community

Along with environmental solutions, you could as well think about researching social initiatives that your drop shipping company might take part in. One strategy that resonates strongly with most customers is giving back to the community. As studies have shown, today's consumers now place a premium on corporate social responsibility, a tactic that works in favor of many organizations, particularly by drawing in new customers. Consumers often report being more influenced to making a purchase from a company that displays social responsibility as opposed to ones that don't. However, the abundance of options may make it hard to settle on a plan of action, especially when trying to find the best fit for your business. Nonetheless, you must recognize that what works for one industry and one shop isn’t always the best for another. It is instead important that you devote time and resources to issues that really excite you and make sense for your company. Planting trees, giving to charity, and taking part in political and social causes like pushing for stricter regulations on child labor, are all good examples.

Conclusion

A plethora of other #esg approaches are widely available across the internet to which their suitability is highly dependent on the nature of your #dropshipping business. Weather you personally care about ESG or not, the success of your business may rely on it. Altogether, ESG issues are inevitable however, now that the world is progressively seeing an increase in #environmentallyconscious consumers it is a good thing to be a step ahead and ready for change.