Technology lends a hand to green e-commerce

THE world has witnessed an e-commerce boom in the past 2 decades, and Asia-Pacific is now driving the latest wave of growth. The Covid-19 pandemic has further accelerated consumers' growing preference for online consumption, with the Asia-Pacific region raking US$230 billion in online retail sales in 2020.

Within the same year, 1 in 3 digital services consumers in South-east Asia was a new user and 90 per cent intended to continue their newfound habits post-pandemic. In Singapore itself, there has been 70 million new digital consumers since the start of the pandemic and online sales here is estimated to reach US$8 billion. These developments led to the prediction that Asia-Pacific's online retail market would be worth US$2.8 trillion by 2025, up from US$1.7 trillion in 2020.

As consumers continue to enjoy the convenience and flexibility of online shopping, e-commerce is silently exerting pressure on the environment. More orders translate to more packaging waste and more delivery trips result in more transportation emits. Generating a larger carbon footprint than before, e-commerce businesses have to be mindful of the increasing impact on climate change.