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The Carbon Footprint of Amazon and Modern E-Commerce

January 15, 2025 • April Miller

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E-commerce has driven hyperconsumerism across the globe. Nowadays, it’s easier to click the strategically-colored yellow Buy Now button on Amazon from your smartphone or computer should you need to shop for something in a jiffy. However, this convenience comes at a great price for the environment through Amazon’s carbon footprints. The leading e-commerce platform is making great strides toward greening its image through a sustainability pledge, but is it fulfilling the promise?

The Growth of E-Commerce in Recent Years

The landscape of the global e-commerce industry has skyrocketed since 2000, going from barely 100 million to 2.3 billion by 2021. The digital economy report published by the United Nations Trade and Development estimates that the value of business sales made by the top 35 platforms rose from $2.6 trillion in 2019 to $4 trillion in 2021. 

The pandemic is partly to blame for fueling this fire. In June 2020, online retail shops saw an unprecedented boom of 22 billion visits as people were forced to stay home in fear of catching the virus. With physical stores closed, people turned to online shopping for contactless transactions — sometimes just to beat boredom — further exacerbating hyperconsumerism. Subscription services are also helping the retail industry flourish, as 15% of avid online shoppers subscribe to products they purchase online often. 

In 2024, sales are expected to surge above $4.1 trillion worldwide. China is the world’s leader in the e-commerce industry, serving a large population on the mainland with demand from beyond borders across the globe. 

ation on the mainland with demand from beyond borders across the globe. 

The Hidden Environmental Costs

The ease of online shopping makes it feel like one click doesn’t do much. Unknowingly, your every click contributes to an unseen web of carbon-intensive activities.

  • Shipping: Next-day shipping and other fast delivery options rely on air transport, one of the biggest contributors to carbon emissions in transportation.
  • Overpackaging: Have you ever received a small item in an oversized parcel with plastic cushioning? Excessive plastic or cardboard packaging and cushioning materials pile up in landfills.
  • Warehousing: These expansive storage facilities are usually located on the outskirts of cities, increasing the gas emissions necessary to pick up and transport products. Additionally, they require energy for 

Amazon’s Carbon Footprint and Sustainability Failures

In 2019, Amazon pledged to achieve net-zero carbon emissions by 2040. However, by 2020, cracks in its facade of promise started showing. Amazon employees staged environmental walkouts, accusing the company of failing to prioritize the planet despite lofty pledges. In contrast, the e-commerce giant saw a 40% increase in its emissions ever since announcing their commitment. In 2024, Amazon’s carbon footprint reached over 68 million metric tons, as generated by its direct and indirect operational activities. 

Critics also pointed out that Amazon’s Sustainability Report conveniently excludes a majority of its emissions from third-party sellers that use the platform to sell products. Despite its dominance in the industry, the company reports fewer emissions than Target, a significantly smaller company. Amazon undercounts its emissions by tallying only Amazon-branded products like Kindle and AmazonBasics, which make up about 1% of its online sales.

Despite carrying numerous brands and products on the platform, Amazon does not count the carbon footprint of manufacturing, electricity, and logistics that go into the making and delivering all those products. 

How Other E-Commerce Giants Contribute

While Amazon’s carbon footprint is alarming, it isn’t the only company contributing to the planet’s carbon emissions. What are other e-commerce giants doing to address their carbon contributions to the planet?

Alibaba

This China-based Asian giant is one of the world’s largest global e-commerce platforms. Once a modest marketplace established by kingpin Jack Ma, it has grown into a multifaceted group dominating numerous industries. Alibaba Group aims to achieve carbon neutrality by 2030, actively investing in green logistics. According to its yearly Environmental, Social, and Governance (ESG) report, a 12.9% cut in net carbon emissions from its direct operations was made possible, and a 22.907 million metric tons decline in its broader ecosystem.

Shopify

Shopify is a Canadian e-commerce platform that allows sellers to build online stores, process sales, and ship products to buyers. Its 2022 climate report mentions the company’s efforts to offset carbon emissions by purchasing carbon removal. They declared an offset of 120,000 tonnes of carbon emissions. Additionally, their data centers run on Google Cloud, making the platform 100% carbon neutral.

Pinduoduo

Pinduoduo is another Chinese company with a unique “team purchase” model that links large groups of people who want to purchase the same item. The wholesale number of buyers allows the customers to pay at a discounted price for products ranging from home appliances to daily groceries. While this strategy may sound great in reducing packaging waste, the platform’s heavy reliance on low-cost, fast logistics still generates significant emissions.

Since the company is intensely focused on agriculture, it has pledged CN¥10 billion or $1.5 billion of its profits to Chinese farmers to address critical agricultural needs. Unfortunately, there seems to be no comprehensive strategy for addressing its carbon footprint.

Meituan

Meituan is China’s largest catering platform, best known for its on-demand food delivery service. Beyond its usual catering focus, Meituan connects users to locally available consumer products and diverse services, including entertainment, dining, and travel. Its large fleet of delivery drivers, emphasizing speedy delivery, accumulates substantial emissions. The company has pledged toward sustainability by introducing eco-friendly transportation called Meituan Bikes and electric mopers in 2023. This allowed them to reduce over 485,000 tons of carbon emissions.

The Path Forward is to Rethink Online Shopping

Clearly, e-commerce companies need to improve their sustainability efforts and commitments. However, the responsibility for change doesn’t fall on their shoulders alone, as buyers are also responsible for reducing environmental impact. As consumers, you can reduce your online shopping carbon footprint by:

  • Choosing slower purchases to cut down on air transport emissions.
  • Grouping purchases to minimize packaging waste.
  • Supporting companies with genuine sustainability initiatives.
  • Making small, conscious changes to your shopping habits.

Before You Click Buy Now

Online shopping has made lives easier as people don’t need to step outside to purchase products. However, with the impact of each product purchase, the environment can suffer from careless transactions. Every click can kick-start a complex system of emissions — from packaging your item to delivering it to your doorstep. 

So the next time you’re about to check out the items in your cart, ask yourself first — Do I really need this? Rethinking your habits is the first step for a consumer to prioritize the planet’s well-being. After all, there’s only one earth, and convenience isn’t worth the cost of our planet. 

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