Sustainability a consideration in e-commerce purchasing: FedEx 

• 7 out of 10 prefer to buy from companies with an ESG strategy
• 67% express interest in quick delivery as they do in sustainability 

New research commissioned by FedEx Express shows that small and medium-enterprises (SMEs) that embraced e-commerce during the Covid pandemic are underestimating the importance consumers now place on sustainability in their purchase decision-making.

In a statement, the express transportation firm said 75% percent of SMEs surveyed noted that their customers are more interested in receiving their goods as quickly as possible rather than in sustainable shopping. 

A similar number, 73%, thought that receiving goods as cheaply as possible is more important to customers, however insights from consumers show the reality is very different, it added.

The "What's Next in E-Commerce" survey polled SMEs and consumers in 11 markets in the Asia Pacific, Middle East, and Africa region (AMEA) in July 2022. 

The poll explored the continuing evolution of e-commerce in the region and identified trends that could fuel their future growth, FedEx said.

According to the survey, the accelerated growth of e-commerce during the Covid-19 pandemic occurred as consumer concerns over the environment continued to grow. 

It said for a significant number of consumers, the future of the planet is top of mind, and they do not want to compromise as they want both sustainability and speedy delivery. 

Across the region, 67% of those surveyed expressed as much interest in receiving their goods quickly as they did in the sustainability of the online shopping process, it added.

FedEx said consumers in Vietnam, Thailand, and South Korea placed the greatest priority on sustainability over delivery speed. 

Conversely, consumers in Taiwan, Hong Kong, and Malaysia are more likely to focus on delivery lead time, it added.

The research shows that eight out of 10 consumers in AMEA expect the e-commerce companies they buy from to pursue sustainable business models. 

Seven out of 10 said they prefer to buy from companies with an effective environmental, social and governance strategy in place, but only 29% of SMEs actually have one. 

The survey stated that SMEs acknowledge that consumers expect them to run sustainable businesses, but many (68%) either fear the associated costs or are unconvinced that any investment in this area will produce a return.

Kawal Preet, president of Asia Pacific, Middle East and Africa (AMEA) at FedEx Express, said, “Consumers increasingly see it as an essential and non-negotiable part of their decision-making process.

“SMEs can make an immediate difference by thinking about the logistics connecting their supply chain all the way to the end-consumer,” Preer said, adding that FedEx is already taking tangible steps to mitigate the impact of delivery on the planet."

SC Chong, managing director, FedEx Express Malaysia said with nine out of 10 consumers surveyed in Malaysia willing to pay a premium for products with proven positive environmental impact, SMEs can align their logistical journey by leveraging on providers that focus on sustainability as their core driving value. 

According to FedEx, it is following a multi-track path to reduce carbon emissions in the delivery cycle with a goal of achieving carbon neutral global operations by 2040. 

This, it said, includes investing in electric vehicles for last-mile deliveries, and digital solutions like FedEx Ship Manager® Lite that allows consumers to fill out their shipping information using their mobile device to quickly generate a label supporting our ultimate goal of zero paper air waybills. 

Additionally, it is implementing solutions like reusable packaging to help reduce waste in the shipping process.