Unveiling the Economy | Online or in-store: Which is the right choice?

2024-08-10 07:24:30

Every Saturday, one of our reporters will be joined by experts to answer your questions about the economy, finance, markets and more.



“More and more people are ordering goods from Amazon. What is the difference, environmentally and economically, if everyone goes to the store to buy products, or if Amazon deliverymen take turns to deliver the purchased products every day? »
–Pierre Gravel

You are not the only one who is curious about this: many studies have tried to answer this question as faithfully as possible.

The popularity of online shopping in Quebec has continued to grow in recent years, according to a new report from NETendances. In 2023, Quebec adults will spend an estimated $17.8 billion online, an increase of $7.3 billion from 2018.

A research team at MIT ran hundreds of thousands of simulations in 2021 to determine the best shopping options. In 75% of cases, online shopping was the most sustainable option.

The David Suzuki Foundation concludes on its website that, roughly speaking, “a van making 100 deliveries is more environmentally friendly than 100 cars making trips to the store.” But the group says the study focused on the “last mile,” the moment a purchased item enters the delivery truck to your door.

“There are many other factors. First, there is the origin of the goods. Second, there is how the product is distributed,” explains Damien Silès, general manager of the Quebec Business Council (CQCD).

Amazon’s Case

As you mentioned, the latest NETendances report shows that Quebecers are buying more and more on Amazon. In 2023, 51% of online purchases by adults in Quebec were made on the platform, compared to 46% in 2022.

Amazon reveals on its website that on a typical day, a delivery person can make 170 to 190 stops: This quickly pays for itself in terms of greenhouse gas emissions. Unless we take the following into account.

Number of delivery vehicles on the road

The World Economic Forum predicts that this will increase by 36% by 2030. The increase in the number of trucks will not only lead to increased greenhouse gas emissions, but also cause congestion on roads that are not all designed to accommodate this demand.

Delivery time

If Amazon prides itself on providing ultra-fast service, this comes with an environmental cost. “When delivery companies have to meet one- or two-day deadlines, […]they have no choice but to mobilize less-than-full trucks and planes, which increases the carbon footprint of each item delivered,” explains the David Suzuki Foundation.

Product Returns

“If you want to return something, you either bring it back to the store or have someone pick it up. That’s the problem,” Damien Silès concludes. According to the latest barometer published by the Quebec Retail Council in 2023, 81% of consumers return some of their goods. “Returns cost double because the delivery van comes back and leaves as well. That’s the worst thing,” adds the general manager of the CQCD.

In-store pickup

Online shopping may be growing in popularity, but according to the NETendances 2023 report, 32% of adult online shoppers in Quebec “always, very or often pick up their orders directly in store to avoid paying delivery fees.”

In summary

Amazon’s shipping and return policies are spot-on and very good for customers’ wallets. [Amazon] Have the financial, technological and mobile means to do it. Yet the vast majority of traders do not. That’s where things get heavy,” Mr. Siles said.

The Quebec Retail Council believes the most sustainable option remains shopping by bike or on foot, when possible.

All in all, Damien Silès believes that the bulk deliveries proposed by Amazon are indeed “worse” than driving yourself … if there are few trucks on the road, if you are not in a hurry to receive your purchase, if you do not return the goods, and if you do not need to go to pick them up.

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#Unveiling #Economy #Online #instore #choice

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