In recent years, sustainability has become a priority for both companies and consumers. Increasing environmental awareness has driven many e-commerce brands to seek more responsible ways of operating. In this scenario, artificial intelligence (AI) emerges as a powerful tool not only to improve efficiency but also to reduce environmental impact.

The problem of waste in E-commerce

E-commerce is synonymous with convenience, but this convenience comes at a considerable environmental cost. Frequent shipments, massive returns, and excessive packaging contribute to a growing carbon footprint. According to Statista, in 2023, over 30% of products purchased online were returned, and a significant portion of these products ends up in landfills because they cannot be resold.

These inefficiencies not only harm the environment but also increase operational costs. In this regard, AI presents itself as a key solution to mitigate these challenges and promote more eco-friendly practices.

Here are six ways in which artificial intelligence is helping to improve sustainability in e-commerce:

1. Inventory optimization: less excess, less waste

Poor inventory management can generate large amounts of waste. Unsold products and overstocking can lead to obsolescence and waste accumulation. With AI-driven tools, companies can predict demand more accurately, adjusting inventory levels in real-time.

AI analyzes historical sales data, buying patterns, and market trends to recommend when and how much to restock. Brands like H&M and Zara are already implementing these solutions to minimize excess inventory and reduce textile waste, thus creating more efficient and eco-friendly supply chains. An interesting case is Thread, a fashion platform that uses AI to identify which products are most likely to be purchased and retained by its users. In this way, Thread adjusts its inventory and avoids producing excess items, contributing to a reduction in textile waste.

2. Reducing returns with more accurate listings

Inaccurate or poorly detailed product descriptions are one of the main causes of returns in e-commerce. Every time a customer returns a product, not only are economic costs incurred, but there is also a significant environmental impact due to additional transportation and packaging.

Tools that automatically optimize product listings using AI can help reduce these types of problems. By creating more accurate and detailed descriptions, as well as including clear images and specifications, the chances of a customer receiving a product that does not meet their expectations are minimized. This not only improves the customer experience but also reduces the number of returns, helping to decrease the waste associated with reverse logistics.

Dondo, the AI platform specialized in optimizing listings, improves product descriptions to ensure customers receive the most accurate information possible. Additionally, it suggests suitable images based on product data, ensuring that each image meets high-quality standards and faithfully represents the final product the buyer will receive. This helps customers have a better perception of what they are purchasing, reducing the likelihood of the product not meeting their expectations upon arrival.

3. Intelligent personalization to reduce impulsive consumption

Another way AI contributes to sustainability is through the personalization of the shopping experience. By analyzing user behaviors and preferences, automated tools can recommend products that truly match the customer’s needs. This personalization reduces the likelihood of impulsive purchases, which often end up being returned or discarded.

This approach not only improves the shopping experience but also promotes more conscious and responsible purchasing decisions. For example, Stitch Fix, a personal styling service, uses AI to offer personalized fashion recommendations, helping customers find products they are actually going to use. Similarly, Etsy uses AI to personalize searches and recommendations, helping its users find products aligned with their preferences and reducing the waste generated by unnecessary purchases.

4. Lower energy consumption in operations

Process optimization through automation also allows e-commerce companies to reduce energy consumption in key areas of their operations. For example, by reducing the amount of time and resources required to manually update product listings or manage inventory, companies save significant amounts of energy. This energy savings translates into less use of servers, electricity, and other associated resources.

By implementing AI solutions like Dondo, companies can reduce the time spent on repetitive tasks by 75%, which will indirectly lower energy consumption and its associated costs.

5. Smart and sustainable packaging

Packaging is one of the biggest challenges for e-commerce in terms of sustainability. With the help of AI, companies can optimize the amount and type of packaging they use, personalizing packaging solutions according to the specific characteristics of each order. This means fewer small products in large boxes, saving materials and reducing transportation costs. Additionally, some AI-based solutions are developing reusable or compostable packaging, further contributing to the reduction of plastic waste.

Ikea, for example, is using AI algorithms to design more compact packaging, which allows for reduced shipping sizes and, therefore, less packaging material. Moreover, it has begun developing sustainable packaging solutions made from recyclable fibers, all optimized by AI.

6. Supply chain optimization: fewer emissions, more efficiency

Another key area where AI is helping to improve sustainability is in the supply chain. By using AI algorithms, companies can optimize their shipping routes and reduce fuel use. These tools enable shipment consolidation and minimize unnecessary trips, reducing both logistical costs and carbon emissions. Additionally, by automating processes such as supplier selection and demand forecasting, companies can avoid delays or unnecessary shipments, optimizing their logistics operations.

For example, UPS uses an AI system called ORION (On-Road Integrated Optimization and Navigation), which analyzes millions of data points in real-time to find the most efficient routes for drivers. This system has reduced the company’s fuel consumption by 10%, equivalent to a reduction of approximately 100,000 tons of CO2 emissions per year.

Conclusion: AI, sustainability, and the future of E-commerce

The integration of artificial intelligence into e-commerce is not only changing how companies operate but also how they address environmental challenges. By optimizing processes, reducing inventory waste, and minimizing the impact of returns, automated tools are paving the way for a more sustainable e-commerce sector.

The commitment to sustainability is not only an ethical obligation but has also become a competitive advantage in an increasingly environmentally conscious market. By adopting AI-based solutions, companies can operate more efficiently and responsibly, aligning their growth objectives with sustainable practices that protect our planet.

References:

• Statista. (2023). E-commerce Return Statistics. Retrieved from https://www.statista.com
• Thread. (2023). AI-powered Inventory Management. Retrieved from https://www.thread.com
• UPS. (2023). ORION AI Optimization. Retrieved from https://www.ups.com
• Datafeedwatch. (2023). AI in Ecommerce. Retrieved from https://www.datafeedwatch.com
• PixelPlex. (2023). AI in Ecommerce: Use Cases. Retrieved from https://pixelplex.io