2012年6月2日星期六

INTL 280 2012S Term paper: The Environmental Implications of Online Shopping in Consumption and Energy Use


Xiaorui Huang

INTL 280 International Environmental Issues

Term Paper
 
Score 96/100
 

The Environmental Implications of Online Shopping in Consumption and Energy Use

Introduction

Market value of online retailing in America has reached 152.9 billion U.S. dollars in 2010 with an average annual growth of 9.3% since 2006 and is predicted to grow quickly in the next several years (MarketResearch.com). Together with its expanding scale, the environmental impacts of online shopping have become noteworthy. Researches about the logistics of online shopping in USA have found out that the logistics of online shopping are more energy-efficient than the one of traditional shopping (Hendrickson et al. 2; Matthews et al. 496-98). These researches somewhat give the public a perception that online shopping is more environment-friendly than traditional shopping. However, to examine the environmental implication of online shopping, isolated analyses on logistics systems are insufficient. The influences of online shopping on consumption and consumer behaviors must be taken into account because they directly influence the overconsumption issue that fundamentally contradicts to the limited resources on the Earth. In this paper, I will investigate the implications of online shopping on consumption and energy use in order to examine its actual environmental impact.

Online shopping creates a shopping environment that promotes consumerism and in this environment several consumer behaviors that unconsciously increase energy cost occur easily, which at least compensate the energy saved in the optimized logistics if not outrun it. In the following text, I will firstly examine four ways that online shopping promotes consumerism and worsens overconsumption. After that, I will focus on two energy-wasteful behaviors that online shoppers often do. Then before reaching a conclusion, potentials of online shopping in promoting sustainable consumption will be briefly discussed.

 

Online Shopping Promotes Consumerism

            Online shopping creates an environment that promotes consumerism and increases consumption in four ways. First, online shopping enables retailers and businesses to apply effective marketing strategies that are unachievable in traditional store shopping and target specific consumer groups and even individuals. An example is the advertising based on the collection of digital trait of people’s internet surfing. Specifically, advertising companies track the sites and contents that people view online and categorize people into groups according to these information for targeted marketing (Baker). Furthermore, individual tracking technique is applied on several large online shopping websites like Amazon.com, which collects the information of items viewed by individuals and advertises exactly the same items back to these individuals on the ad column on other websites. The targeted marketing strategy is effective in converting advertisement viewers into buyers. According to two quantitative studies, online targeted advertising generates a 79% increase in the number of ad viewers’ who search for the brands advertised and nearly doubles the percentage of viewers who make the purchase when compared to non-targeted advertisement (Farahat and Bailey 9, Beales 17-18). Therefore, by allowing targeted advertisement that is impossible in traditional store shopping, online shopping increases consumption by making people buy more.

            The second way that online shopping promotes consumerism is that it allows consumers to access to huge amount of information about style and fashion, which is particularly true in clothing and footwear shopping Other than the advertising discussed above, a major source that online shoppers receive such information about is from the reviews of goods by other consumers. I have conducted a simple analysis based on data collected from Zappo.com, one of the largest online footwear stores in America. I have randomly collected 15 samples[1] of online consumer reviews from reviews that are marked by two or more viewers as “useful” (as shown on the website). Among the 15 piece of consumer reviews about shoes, totally seven of them (46.67%) include simple description about styles and three out of the seven describe the style of the goods in detail. These three pieces (20%) also provide additional information either about desire to purchase or about how the goods match the owners’ status. Although further research is needed, this simple analysis indicates that consumer reviews provide can lots of information about fashion and style of consumer goods and people view these reviews as important source of shopping guidance (as two or more people mark these reviews as useful). These information increases viewers’ desire to purchase goods and to keep in fashion, which contributes to consumerism and therefore overconsumption. To some degree, the experience of online shopping has replaced need for goods or even the goods themselves to be the primary goal (Reisch 274). 

             Also, in the virtual shopping on the internet, consumers psychologically tend to increase consumption. According to Lucas Reisch, a scholar in consumer economics, “the more virtual the buying act and the money involved, the lower the barrier to impulse buying” (275). Specifically, when shopping online with virtual money such as credit card, consumers are less self-restrained from making the unnecessary or unplanned purchase. Thus, the low psychological barrier to buy things on the internet increases consumption.

            The fourth way that online shopping increases consumption is through the policies of combined shipping discounts. Many online stores and retailers adopt the policies that if consumers purchase goods that worth over certain amount of money, they can get discounted or even free shipping. For example, Amazon.com has the FREE Super Saver Shipping policy providing customers free shipping for orders worth over 25 dollars (Amazon.com). Such policies can encourage consumers to combine several items that they want to buy in a single order (but not necessarily deliver in a single shipping). However, sometimes consumers tend to buy something they do not necessarily need just to make up the value of the order to qualify the discounted or free shipping. In such cases, consumers will get the illusion of taking advantages of the combined shipping discount, yet, the consumptions especially unnecessary consumptions increase due to these policies. Therefore, the combined shipping policies adopted in online shopping increase consumption by encourage consumers’ unplanned and unnecessary purchasing.

 

Online Shopping Causes Unnecessary Energy Costs in Shipping

Other than creating a pro-consumerism environment, online shopping also encourages several consumer behaviors that unintentionally increase energy cost in shipping. Firstly, in online shopping, consumers rarely consider the shipping distance that directly influence energy cost. This is because the shipping distance is made invisible by the free shipping or flat shipping rate. For example, on Amazon.com, for the same item, shipping rate is calculated based on its weight, size, packaging condition, and means of delivery. The distance from retailers to consumers will not influence the shipping rates. As a result, if a geographically further retailer provides the exact same item on a lower price than a geographically closer retailer, consumers will simply buy from the further retailer because the shipping rates of the two are the same. In this process, unnecessary energy cost of longer shipping is generated by the rational consumer choice to buy goods on a lower price. In contrast, in traditional store shopping consumers have to pay for the transportation that is positively correlated to distance between them and the stores, which reduce unnecessary energy cost because rational consumers will choose a store from which they can buy stuff at the lowest total cost (including the price and the transportation cost). Thus, compared to traditional store shopping, online shopping make consumers increase energy cost unintentionally because of the flat shipping rate.  

The second energy-wasting consumer behavior encouraged by online shopping is the preference to faster delivery. After making payment for goods, consumers psychologically tend to have what they have paid as soon as possible and thus often choose the fastest shipping service they can afford. As a result, in a virtual environment where barrier to spend money is low (as discussed above), hotheaded consumers often choose one-day shipping (Plepys 520). Consequently, air transport is substantially used in online shopping, which becomes a major source of its environmental impacts (James Wilsdon 62). According to a study about the online book retailing in America, the increased energy cost in air transport could neutralize or even outweigh the energy saved in the optimized logistics system (Matthews et al. 499). Therefore, due to the consumer preference on fast delivery, unnecessary energy cost is caused in online shopping.

 

Potential of Online Shopping in Promoting Sustainable Consumption

So far I have discussed several ways that online shopping promotes overconsumption and increases unnecessary energy cost unintentionally, nevertheless, great potential exists to use online shopping to promote sustainable consumption and green products. Firstly, if online retailers use its powerful marketing channel such as the recommender tool on websites to promote green products, the great advertising power that previously promotes consumerism will be transferred to promote sustainable consumption (Zureik and Mowshowitz 51; Lee, Huang, and Hwang 552). Besides, the internet can easily connect consumers with the producers and sellers of green products and provide consumers the access to “how-to” information about sustainable consumption (Wilsdon 62). Therefore, online shopping has great potential to advertise green products and sustainable consumption.

 

Conclusion

Online shopping creates a shopping environment that greatly promotes consumerism and overconsumption. Besides, several unintentional consumer behaviors that cause unnecessary energy cost in shipping are very likely to occur in online shopping. In general, the overall environmental impact of online shopping is much worse than the results provided by researches that solely focus on the logistics. Specifically, online shopping could subtly increase the total resources consumption as well as energy use per capita of online shoppers. With the expansion of online retailing in America, the national resources consumption and energy use may increase, which poses challenges for us in addressing energy crisis, global warming, and the inequality of living standard between developed and developing countries. Nevertheless, great potential exists in using online shopping to promote sustainable consumption and green products. Real practices are called for to make full use of this potential. 


 

Work Cited

"Amazon.com Help: FREE Super Saver Shipping ." Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. N.p., n.d. Web. 26 May 2012. <http://www.amazon.com/gp/help/customer/display.html/ref=help_search_1-1?ie=UTF8&nodeId=527692&qid=1338353863&sr=1-1>.

Baker, Loren. "Behavioral Targeting and Contextual Advertising | Search Engine Journal." SEO & Search Engine News : SEJ. N.p., 1 Sept. 2004. Web. 29 May 2012. <http://www.searchenginejournal.com/behavioral-targeting-and-contextual-advertising/836/>.

Beales, Howard. The Value of Behavioral Targeting. Network Advertising Initiative 24 May. 2010. Web. 29 May 2012.

< http://www.contact-mcs.com/crimtan_newsletter/resources/bealesbt.pdf >

Farahat, Ayman, and Michael Bailey. How Effective is Targeted Advertising?. Proc. of WWW 2012 Conf., 16 - 20 Apr, 2012, Lyon, France. Web. 29 May 2012. 

                  < http://www2012.wwwconference.org/proceedings/proceedings/p111.pdf>.

Hendrickson, Chris, Scott Matthews, Amy Nagengast, Rachael Nealer, and Paulina Jaramillo. Life cycle comparison of traditional retail and e-commerce logistics for electronic products: A case study of buy.com. Proc. of Sustainable Systems and Technology Conf., 18 – 20 May, 2009, Carnegie Mellon Univ. Weber: UP of Carnegie Mellon, 2011. Web. <http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=5156681&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D5156681> 

Lee, Ying-Lien, Fei-Hui Huang, and Sheue-Ling Hwang. Green Advocate in E-Commerce. Proc. of the 13th International Human-Computer Interaction Conf., 19 - 24 Jul, 2009, San Diego, CA, USA. Jacko: Springer Berlin / Heidelberg, 2009. Web. 29 May 2012.

                 < http://www.springerlink.com/content/pl8h38250650604x/about/ >

Matthews, Scott, Eric Williams, Takashi Tagami, and Chris Hendrickson. "Energy implications of online book retailing in the United States and Japan." Environmental Impact Assessment Review 22.5 (2002): 493-507. ScienceDirect.com. Web. 25 May 2012.

"Online Retail in the United States by MarketLine in United States, Consumer Goods, E-Commerce & Online Retailing." MarketResearch.com - Market Research Reports - Business and Industry Analysis. N.p., n.d. Web. 1 June 2012. <http://www.marketresearch.com/MarketLine-v3883/Online-Retail-United-States-6652758/>.

Plepys, Andrius. "The grey side of ICT." Environmental Impact Assessment Review. 22.5 (2002): 509-23. Web. 18 Apr. 2012.

Reisch, Lucia. "The Internet and Sustainable Consumption: Perspectives on a Janus Face ." Journal of Consumer Policy 24.3-4 (2001): 251-86. SpringerLink. Web. 27 May 2012.

Wilsdon, James. "E-topia? Scenarios for e-commerce and sustainability." Digital futures: living in a dot-com world. London: Earthscan Publications, 2001. 39-68. Print.

Zureik, Elia, and Abbe Mowshowitz. "Consumer power in the digital society." Communications of the ACM - The Digital Society 48.10 (2005): 46-51. Web. 26 May 2012.

 

Appendix

The following are samples of consumer reviews collected from Zappo.com. They are randomly chosen from reviews that marked by two or more viewers as “useful”.

 

Notes:

“**”  This piece of review contain detailed description about style 

“*”   This piece of review contain simple description about style

“__”  The underlining text is the description about style

 

l  http://www.zappos.com/dr-scholls-jennie-parchment-white?zfcTest=fw:1

**They are quite comfortable, except the strap on the back of my ankle rubbed me the wrong way. Also, I just really don't like the style of the straps on top. I think the straps look a little cheesy and aren't especially hip for my age group (late 20s, early 30s.)

 

l  http://www.zappos.com/product/7786233/color/355665?zfcTest=fw:1

I bought these for my husband for his half-marathon training. He is a minimalist, very no-frills type of man. He liked these shoes the first time he wore them. They are as described: a lightweight but high-mileage trainer with plenty of arch support and cushioning. He regularly runs hilly 14-milers, and these seem to provide the cushioned support on the downhills. He also wore them for his half-marathon race. They gave him no blisters and have a zero break-in period - can be worn right out of the box for a long run.

 

l  http://www.zappos.com/product/7894619/color/347?zfcTest=fw:1

*These are cute but there is absolutely no cushioning in the footbed. I'm returning them. I guess I'll have to keep shopping! Good thing Zappos has awesome customer service, an easy return/exchange policy, and fast shipping

 

l  http://www.zappos.com/blowfish-timo-blue-belize-blanket?zfcTest=fw:1

*The back strap was a bit too long for me. Wish I could adjust a bit tighter, but fits well and looks cute

 

l  http://www.zappos.com/naturalizer-prissy-cosmic-dust-metallic-foil-leather?zfcTest=fw:1

**Great sandal! I bought this shoe a few weeks ago and I absolutely cannot wait to wear it! It's ridiculously cute on. I bought it in black and had to have the silver. It's great for work and for going out. Very comfortable, though the strap does rub slightly against my pinkie toe (nothing some surf wax won't fix - a trick I was taught last year that completely changed my life! No more blisters!)

 

l  http://www.zappos.com/product/7925314/color/337396?zfcTest=fw:1

**Love! This new Free Run+ is really a hot item right now and I couldn't resist buying them! I went into the Nike store, they didn't have my size, and I was so happy to find it on Zappos! Ordered these Saturday night, and got it on Monday afternoon. love the speedy delivery! When I opened the box, the vibrant hot punch color just made me so happy! How could anyone not want to run when they have this pair! I tried them on, they are so light. compared to the Airmax ones I previously wore to run. I was concerned after reading one of the reviews about the tongue of these shoes, but they did not affect me at all. They are so comfy, and light and i love it so much!

 

l  http://www.zappos.com/reef-fanning-brown-gum?zfcTest=fw:1

Reef Fanning - I bought these shoes for my husband. Mainly because the bottle opener on the bottom was a novelty. He loves the shoes though and insists that they are the most comfortable flip flops he owns.

 

l  http://www.zappos.com/sperry-top-sider-billfish-3-eye-boat-shoe-tan-beige?zfcTest=fw:1

These shoes are extremely comfortable but lack good, lasting construction. I'm now relegated to tossing my second pair due to a tear in the cloth portion of the shoe which hasn't lasted more than a year. I won't be buying these again. Too bad because they are so comfortable but I can't justify paying this much for something that just doesn't last.

 

l  http://www.zappos.com/asics-gel-kayano-18-white-black-hot-blue?zfcTest=fw:1

Awesome shoes. Buying a new pair to replace ones that I wore out. My only complaint is that ASICS only makes the one style in the wide widths.

 

l  http://www.zappos.com/birkenstock-gizeh-birko-flor-metallic-silver-birko-flor-trade?zfcTest=fw:1

Why the plastic thong? I like the birkenstock footbed, but found the hard plastic "thong" uncomfortable. Mephisto uses leather, not hard plastic, I can't understand why the birks folks don't do the same.

 

l  http://www.zappos.com/product/7925831/color/337799?zfcTest=fw:1x

Love them, as a college football player and avid weightlifter these shoes are great for running and lifting!

 

l  http://www.zappos.com/crocs-kids-keeley-sandal-infant-toddler-youth-fuchsia-bubblegum?zfcTest=fw:1

I ordered these for my 3-year-old. She cannot wear flip-flops with anything between the toes. I ordered these a half size up so they will fit her all summer. The ankle strap adjusts with velcro. The footbed is squishy but still supportive. The only thing is, if you don't put the kid's heel far back enough in the sandal, the toes can be pushed too far up front and risk stubbing. We had to play around with them a little to get the right fit. I would recommend ordering either true to size or a half size up for extra toe room.

 

l  http://www.zappos.com/orthaheel-tide-pewter-metallic?zfcTest=fw:1

*Got these in black. Expensive for a flip-flop, but well-made and very supportive (and cheaper than chiropractic). Shiny black makes it a little dressier than normal flip flops. Took about a week to break in the uppers. Bottoms are very supportive & I am already feel my feet, knees and back realigning (I got plantar fasciitis after being pregnant). I normally wear a 7.5 and got these in an 8, so I'd say order up if you're a half size.

 

l  http://www.zappos.com/brooks-adrenaline-gts-12-bright-green-cactas-flower-black-ombre-blue?zfcTest=fw:1

These are the greatest shoes. Nice to have good shoes for walking that look better with slacks or jeans than white running shoes. Totally prompt delivery. No problems. In terms of just the shoes, they are really sized well except that I notice a little too much movement in the heel. Solved by wearing 2 pairs of socks. Wouldn't not buy them for this.

 

l  http://www.zappos.com/dansko-jute-pro-multi-stripe?zfcTest=fw:1

*Very cute in the picture but not so much in person. They run large, ordered my regular size and they were huge. Also not a fan of the Gummy sole on these and the feel was very clunky...even more than regular Danskos. Sadly these are going back.

 

 

 



[1] Refer to the Appendix at page 10

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