Should You Be Creating a Sustainable and Ethical eCommerce Brand?

The short answer: Yes. But what does creating a sustainable and ethical eCommerce brand really mean? 

There are two main drivers behind eCommerce sustainability:

1. Growing customer awareness, especially among Gen Z shoppers, of the environmental impact of fast fashion 
2. Inflation and other economic shifts driving consumers to slower fashion trends (i.e., buying fewer products, less often, of better quality) 

It’s far more complex than just combining the right buzzwords or switching to recycled packaging. 

While there is strong consumer demand for sustainability, challenges remain. For instance, there is still a lot of confusion over what constitutes sustainability for eCommerce brands, and many consumers are concerned about greenwashing. However, this also gives online retailers a significant opportunity to stand out by offering clearer, more transparent information about their practices​. 

But is it worth the investment? Let’s break down the costs. 

The Environmental Costs of Not Going Sustainable 

When you consider that the fashion industry emits as many greenhouse gasses (GHGs) as the economies of France, Germany, and the UK combined, it’s hard not to see the environmental costs of not creating a more sustainable and ethical brand. Additionally, upstream activities like fiber production and textile dyeing contribute to 20% of global freshwater pollution. 

These are substantial numbers made even more frightening when you consider that 85% of all textiles — that take hundreds of years to decompose — go to landfills each year. 

The Social Costs of Not Going Sustainable 

The rapid production cycles of fast fashion, in particular, can lead to exploitative labor practices in developing countries, where workers are paid low wages and face dangerous working conditions. 

Not to mention the increased exposure risks — to harmful chemicals used in dyeing and finishing — from textile manufacturing can cause issues such as cancer, respiratory diseases, and skin disorders. In fact, it’s estimated that a whopping 43 million tons of chemicals are used for textile production, exposing hundreds of thousands of workers to harmful substances like carcinogens. 

It should not surprise you that the average annual growth rate of the ethical fashion market is 8.3%, with 73% of Millennials willing to pay more for these sustainable brands​. 

But How Do Environmental and Social Costs Impact Your Business Costs? 

More than 60% of shoppers want to shop from brands prioritizing eCommerce sustainability​. 

As consumer awareness of environmental and social issues grows, brands that don't adopt sustainable practices face the risk of negative publicity and boycotts. This can result in an increasingly negative brand image that, with social media amplification, could ruin your brand’s reputation. As we know, this can stunt long-term growth and decimate your retention. 

How shoppers view the buying of secondhand clothing has changed considerably in the last 10 years. The global secondhand clothing market is estimated to be worth around $152.5 billion and is expected to grow to $350 billion by 2028. And it’s not just due to environmental reasons; shoppers opt for secondhand apparel due to economic factors, which are becoming more and more relevant. 

The bottom line is that resale markets and sustainable fashion brands are growing faster annually than traditional fashion is. and brands who do not transition to more sustainable models risk losing significant market share to more eco-friendly competitors.

However, the financial impacts don’t stop there, and they are not as generalized. Let’s look at two. 

Increased Operational Costs for eCommerce Brands Who Don’t Adopt Sustainable Practices 

As governments enforce stricter regulations and resources become scarcer, operation costs will likely increase. For example, increased costs of raw materials like water and fossil fuels or disruptions in supply chains due to environmental damage could heavily impact profit margins​. 

But even for those outsourcing parts or all of your manufacturing and fulfillment (👋hello dropshippers!), you’re likely to see increases in print-on-demand and other products due to resources becoming scarce. Water-intensive crops like cotton, for instance, are particularly vulnerable to climate change and water shortages, both of which drive up costs. 

Additionally, supply chain disruptions are likely to increase. Disruptions caused by extreme weather events, political instability, or increased scrutiny of labor practices can lead to costly delays and forced shifts in suppliers, which will also increase your operational costs. 

Decreased Growth Opportunities for eCommerce Brands Who Don’t Adopt Sustainable Practices 

Brands who do not make meaningful eCommerce sustainability changes risk losing investor confidence and funding. This is because sustainability has become a key metric for investors, who are now prioritizing environmental, social, and governance (ESG) factors in their portfolios. 

However, sustainability trends point to possible innovations for growth. For instance, you could make upcycling part of your brand instead of fearing the growing secondhand resale market. This is something Patagonia was able to do with their Worn Wear platform. 

You also might struggle to attract the talent you need to grow your business if you’re not seen as an ethical business. Younger workers, especially Millennials and Gen Z, are increasingly choosing to work for companies that align with their values, including sustainability.

Can You Create a Sustainable and Ethical Brand Without Blowing Your Budget? 

Yes, creating a sustainable and ethical brand on a budget is possible, but it requires strategic planning, resourcefulness, and a focus on long-term gains over short-term costs. For those of you just starting your eCommerce brand, you want to start by sourcing eco-friendly materials or working with ethical suppliers, even if it means starting with fewer product offerings on your store. 

Cosy London is a great example of this in practice. On a mission to create the lightest, most comfortable mask on the market, they went to great lengths to locally source sustainable fabrics and materials and ensure that every hand involved in the design and production of their masks is treated fairly. A strategy that got them listed in the September issue of Vogue Magazine. 

But what if you have already launched your store? How can you make it more sustainable and ethical? Here are five ways. 

1. Gradually Introduce Sustainable Materials

You don’t need to make giant leaps to transition your business into a more sustainable and ethical eCommerce brand. Like with any business change, it’s better to start with minor tweaks to your inventory than to make a complete 360. For instance, you could slowly roll out sustainability optimization in your operations first. Here are a few examples: 

1. Work gear and desk essentials. Opt for recycled paper, eco-friendly ink, and energy-efficient office supplies. Or switch to a paper-free office, if possible.   
2. Warehousing and inventory management. Use renewable energy sources to power your operations where possible, and choose eco-friendly cleaning products for your warehouse. Invest in good demand forecasting tools to prevent overproduction, reduce excess stock, and minimize waste.

Now, what about your products? 

You want to test your market first to gauge the response when slowly shifting your inventory to include more eco-friendly, ethically sourced, or recycled materials. You can do this by surveying your current customers or launching limited-edition sustainable product lines to see what your shoppers engage with. 

Once you have a baseline, you can start with a few core products or partner with sustainable suppliers for a portion of your inventory while keeping the rest of your supply chain intact. Then, increase the percentage of sustainable materials over time as you scale, using customer feedback and sales data to guide you. 

Here are some eco-friendly product examples to get you started:

Eco-Friendly and Ethical Products to Sell in 2025

1. Reusable shopping bags (who doesn’t love a tote!)
2. Solar-powered gadgets
3. Compostable tech accessories
4. Pet toys made from recycled materials
5. Vegan treats for pets made from food waste
6. Ethical fashion basics
7. Recycled cotton apparel
8. Limited-edition clothing collections
9. DIY gardening kits
10. Recycled plastic outdoor furniture
11. Activewear made from recycled plastic
12. Natural personal care products
13. Natural and ethically made body products
14. Reusable utensils and eco-friendly straws
15. Plastic-free kitchenware
16. Candles with a charitable mission
17. Eco-conscious paper products
18. All-natural children’s toys
19. Eyewear made from recycled materials (think Sea2See)

[Source: Sea2See]

2. Look for Ways You Can Reduce Business Waste  

The first place you want to look to reduce eCommerce business waste is in your packaging. Is your packaging the right size for your products? Is it recyclable or biodegradable? Are you still using single-use plastics? If you answered yes, there is a lot of room in your post-sales strategies for more eCommerce sustainability practices.  

Looking for some inspiration? Mega online retailer Allbirds is a sustainable packaging superhero! They use 90% post-consumer, recycled cardboard that gives them a shoebox, shopping bag, and mailing package, all in one. 

But that doesn’t mean you need to invest as much into your packaging design as they have. You can start small by optimizing for custom-fit packaging, which would help stop the waste associated with oversized boxes and padding. Or change to a recycled packaging material. EcoEnclose, for instance, is a popular choice for Shopify stores. 

Here are some other ways you can reduce your eCommerce business’s waste:  

1. Look for demand forecasting tools to help you prevent overproduction and reduce excess inventory or dead stock. This not only helps prevent the waste of unsold products but the costs as well! 
2. Switch to on-demand manufacturing to eliminate the need for large inventories. An economical way of doing this would be to partner with print-on-demand services like Printful or Teemill, who also offer eco-conscious material options. 
3. Repurpose or upcycle any returned products by selling them at a discount, donating them, or refurbishing them. 
4. Consider starting a take-back or recycling program where customers can return their used products to be recycled. This is something eCommerce brands like MUD Jeans or Swedish Stockings have been having a lot of success with to offset their environmental impact and boost loyalty. 

This brings us to our next eCommerce sustainability tip! 

3. Consider Launching an eCommerce Circular Program

The idea behind circular programs is that they extend the life cycle of products to reduce waste, conserve resources, and minimize environmental impact. Simultaneously, these programs help your shoppers save money through rewards and discounts or reduced pricing for refurbished or resold products. 

There are plenty of ways your brand could put this into practice — choosing between them will depend on cost, effort feasibility (do you have teams and systems in place for the program?), and whether or not they align with your brand, business model, and market. Ultimately, you need a program adapted to your specific needs to help you stand out in your niche. 

So, where to start? 

First, decide on the type of program that will work for your business. For inspiration, here are some more popular eCommerce circular programs you could adapt for your brand: 

1. Product take-back or trade-in programs. Encourage your shoppers, with a discount, to return or trade in their unwanted products for recycling, refurbishing, or proper disposal.
2. Waste-to-resource initiatives. Create new products with customer-returned waste materials.
3. Resale or refurbishment programs. Refurbish returned materials or set up a brand-sponsored secondhand marketplace to extend product life cycles and make higher-end products more available to customers with smaller budgets. 
4. Repair services. Offer repair services to customers as a way to extend the lifespan of products and build long-term brand loyalty. 
5. Upcycling initiatives. Start an upcycling program where you transform returned, damaged, or unsold products into new items of equal or higher value.

Here’s an example of a Shopify brand who created their whole brand around upcycling, turning vintage denim into modern, stylish jeans.

Whichever program you decide on, remember to start small. You want first to test your initiative or program with your market. Then, if it hits the mark (it meets your clear objectives), you can gradually scale your program. 

4. Use Sustainability to Optimize Your Logistics/Supply Chain

Moving to a more sustainable supply chain operation doesn’t just mean running a more ethical eCommerce brand. It can also bring down your costs, improve brand loyalty, protect your business from future regulatory risks and fines, and help set your brand apart from your closest competitors — all factors that can drive profit! 

For eCommerce brands using outsourced fulfillment, you want to review your 3PLs (third-party logistics) to ensure they prioritize sustainability. 

Are their warehouses energy efficient? Do they use electric or hybrid vehicles for last-mile deliveries or offer carbon-neutral shipping options​? Do they provide localized fulfillment centers to reduce shipping distances and associated emissions? 

If not, move to 3PLs focusing on sustainable and ethical logistics, such as ShipBob, DHL Supply Chain, or Flexport. 

For those of you handling your supply chain in-house, here are some ways you can use sustainability to optimize your logistics: 

1. Opt for consolidated shipping. This means grouping your orders (order bundling) to reduce the number of shipments and, therefore, the environmental impact of multiple deliveries.
2. Choose eco-friendly partners. Decrease your brand’s carbon footprint by partnering with logistical services that offer carbon-neutral or low-emission delivery options. 
3. Find collaborative freight solutions. Look for other businesses with which to share freight space. By combining shipments in underused trucks or containers, you maximize load while saving on transport costs. 
4. Switch to electric or hybrid vehicles. Partner with couriers that use these vehicles for the last-mile portion of deliveries. Or, if you have your own fleet, invest in electric or hybrid delivery vehicles yourself. This will also save your business money in the long run, as it will reduce fuel costs and lower maintenance expenses due to fewer moving parts and longer lifespans of electric vehicles.​
5. Optimize routes for last-mile delivery. Factor traffic, delivery windows, and the vehicle capacity needed to build more efficient delivery paths to reduce fuel consumption, emissions, and time. Shopify apps like Routific or EasyRoutes by Roundtrip can help you do this effortlessly. 

5. Be an Open eCommerce Sustainability Book 

Last but not least, let’s talk about transparency. When it comes to sustainability, you definitely don’t want to overpromise and under-deliver. This means always being very honest about your current sustainability goals, progress, and setbacks. 

On the most basic level, this means using clear, honest marketing. You want to ensure you are not greenwashing — making claims about sustainability that aren’t accurate or verifiable. Not only is this morally suspect, but the long-term brand damage from being misleading will outweigh any short-term marketing gains. Instead, use your social channels to educate customers about the importance of sustainability and outline where your products contribute and where your brand is looking to improve. 

Or share behind-the-scenes TikToks or YouTube shorts to show how your products are made and the teams and materials making them. 

Whatever the medium, you want to be as transparent as possible regarding supply chain details, material sources, environmental impact reports, and certifications. Even if you are well into creating a sustainable and ethical eCommerce brand, you still want to communicate where you are in that journey. An awesome example of this in practice is Nisolo. 

Nisolo positions themselves as a responsibly made shoes and accessories brand. However, they also emphasize transparency in their sustainability efforts and openly share their achievements as well as areas they aim to improve in. They do this in their FAQ, copywriting, and marketing. But it’s their Sustainability Facts Label that sets them apart. 

So, Should You Be Creating a Sustainable and Ethical eCommerce Brand? 

Absolutely! 

Embracing sustainability not only benefits the planet but also strengthens your brand's reputation, encourages customer loyalty, and can reduce your operational costs. 

Remember to start small, be transparent, and integrate as many eco-friendly practices as possible into your backend operations to ensure long-term growth and stay competitive in the evolving eCommerce landscape where customers expect more brand responsibility. 

Happy selling! 

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