New Study: Consumers Willing to Pay More for Sustainable Delivery

photo_08aMore than half of all consumers would be willing to pay 5% or more for the products that they order online if it means they can be delivered using environmentally-friendly trucks and delivery vans, according to the results of a new study.

And 76% of consumers polled said they would be willing to wait at least one extra day for their orders if it meant they could be delivered by vehicles using sustainable resources.

Changing Mindsets

The survey — which was conducted by Loyola University’s Business School in conjunction with BearingPooint and West Monroe Partners — could represent a turning point in consumers’ attitudes toward the products they order through such online stores. Up until now, many web-based retailers have focused their efforts on finding ways to deliver their products to consumers faster, rather than more environmentally efficiently.

Amazon even announced that it would like to offer same day delivery and use pilot-less drones to make deliveries to customers’ homes by air.

But this study, and others like it, could cause executives to reconsider their delivery processes, opting for cleaner rather than faster.

Business Attitudes Evolving

In fact, the same study found that a majority of North American supply chain executives currently are making sustainable delivery systems a strategic priority for their businesses.

According to the study, 36% of executives surveyed said  they plan to incorporate sustainability into their operations in the near future. And 2% said they plan to do so within the next 12 to 36 months.

But the reasons behind this new thinking aren’t entirely altruistic, according to the survey. Many of the business executives interviewed for the surveys said they were considering making the change to more environmentally friendly delivery systems in order to boost their brand image and make their businesses look more appealing to consumers.

Reasons Behind the New Approach

While companies may not be willing to take on the higher costs of sustainable delivery systems on their own, if they can view it as a competitive necessity in a marketplace where consumers prefer environmentally conscious companies, they can justify the additional costs, according to Yves Leclerc, managing director with West Monroe Partners.

“Most supply chain teams are struggling to manage the complexities of globalization, the war for talent, and the increasing demands,” Leclerc said in a news release announcing the study’s results. “So allocating budget and resources towards sustainability doesn’t seem feasible unless companies can put together a business case for the return on investment.”

Europe Ahead of the Curve?

Compared to their counterparts in Europe, North American executives are still not entirely buying into the whole sustainability issue, according to the survey.

A similar survey in Europe found that 59% of companies have prioritized sustainability — which is not surprising given that the European Union recently implemented draconian environmental emissions requirements for all vehicles, including delivery vans and trucks.

And while European executives cite also cite brand image as the most important motivator, innovation was far less important than it was to North American survey participants. European executives placed the highest important on the economic impact of sustainability while their American counterparts said that environmental impact was more important overall.