Clicks>Consumption>Consequences
Forget everything you know about online shopping; eCommerce is changing. New online retail brands like TikTok Shop, Shein, and Temu have seemingly sprung out of nowhere (China) and are shaking the ground beneath the feet of more familiar faces like eBay and Amazon. These new kids on the eCommerce block have set out their stalls primarily on our smartphones and harnessed the power of social influence and gamification to offer deals that look so good that you’d be crazy not to buy.
According to ChannelX, the UK-based eCommerce industry blog, Temu and Shein are flying between 4,000 to 5,000 tons of goods worldwide daily. That’s the equivalent of 100 Boeing 777 freight flights, carrying a lot of low-value impulse purchases and delivering them directly to our homes for less than the cost of a first-class stamp. While there are bargains to be found on these sites, it’s also fair to say there’s a lot of cheap rubbish and products destined for landfill faster than you can say ‘TikTok made me buy it’.
The good news is that conscious consumption is on the rise. Second-hand platforms like Vinted and Back Market are tapping into demand for sustainable alternatives, while smaller retailers offer ethical choices with a community focus. With Gibraltar’s economy closely tied to global retail trends, how we buy matters — for our wallets, our businesses, and the planet.
Rebranding the preloved segment
While every purchase you make online or on the high street will have an environmental impact, there are brands offering a more sustainable choice. A big part of this sustainable eCommerce revolution is the re-imaging of the second-hand market.
The fashion industry is leading the charge, with eCommerce brands like Vinted and Depop successfully rebranding second-hand clothing as pre-loved or vintage. Meanwhile, eBay, with a little help from stars from reality TV’s Love Island, has made second-hand clothing aspirational.
This is having a significant impact on consumers’ buying habits. According to a recent survey by the eCommerce technology company Linnworks, 68% of consumers have made a second-hand purchase in the last year, with 40% of those shoppers buying second-hand clothing. While the cost-of-living crisis is clearly a driving force behind this trend, there is also a growing movement to more sustainable shopping practices, particularly amongst Gen X consumers.
According to Keep Britain Tidy, 10,000 items of clothing are sent to landfill in the UK every five minutes of the day. When you consider the massive scale of the problem, anything that can be done to reduce this incredible waste is essential.
Distressed Inventory
While any efforts to extend the lifespan of clothing through the second-hand market should be applauded, the fashion industry has a more significant problem. In an industry recognised for short sales seasons and high numbers of returns, the industry manages millions of items of overstock and distressed inventory that it cannot or will not sell. Reports suggest that upwards of 40% of clothes made every year go unsold. Sadly, much of this waste material is destined for landfill.
While many traditional retail brands’ business models are not equipped to effectively manage these overstocks, a new breed of online marketplaces has emerged to help liquidate stock and prevent unsold inventory from going to landfills. eCommerce sites like Secret Sales manage overstocks from thousands of European retailers, including many luxury brands.
Alongside the obvious environmental impact sites like Secret Sales aim to redress, they also solve a significant economic problem referencing £140 million worth of stock going to landfills in markets like the UK every year.
Technology and e-waste
But it’s not just the fashion industry embracing a more conscious approach to ecommerce. Technology and consumer electronics is another sector making strides to improve its environmental impact.
Online marketplaces like Back Market and MusicMagpie are promoting second-hand and refurbished tech as an affordable, reliable and sustainable alternative to buying brand new.
They also encourage individuals and corporations to reconsider what they do with their old tech. You might see that old phone in your junk drawer (we’ve all got one) as an insignificant problem. But when you dig a little deeper into how that smartphone was made, it really makes you think.
Back Market offers a compelling reason to consider recycling old devices and buying refurbished tech by highlighting the environmental impact of manufacturing a new smartphone. This process includes the excavation of 246 kg of raw materials, 89,000 litres of fresh water, and 84 kg of CO2e (the equivalent of 600 miles of driving).
Gibraltar Opportunity
The data used for this article largely references UK trends and information, but this doesn’t mean that Gibraltar can bury its head in the sand and think these challenges don’t exist here. There are problems to solve when it comes to handling e-waste and unsold inventory, but there could be opportunities too. Could there be space for local versions of Backmarket, Vinted and Wallapop? It has certainly worked for the food delivery sector…
While global e-commerce giants like Amazon, Shein and Temu dominate online shopping, there’s an ethical alternative much closer to home – the small businesses. In a world where sustainability is becoming more than just a buzzword, supporting local enterprises offers a more environmentally conscious option. Our homegrown retailers also bring a personal touch and accountability to their practices, ensuring that every purchase supports a business committed to ethical standards, quality, and the local economy. In doing so, we not only make more responsible consumer choices but also contribute to strengthening our community.
OTHER
Technology is having a major effect on every aspect of our lives, and the retail environment is not immune to these changes. Not only has online shopping revolutionised the way we think about buying and consuming, but it has also dramatically changed how we shop in physical stores.
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