Sustainable E-Commerce and Carbon Reduction in Last-Mile Delivery

Abstract

The rapid expansion of electronic commerce has transformed retailing, consumer behaviour, and logistics systems. Although e-commerce can reduce certain forms of consumer travel and improve supply-chain efficiency, the growth of home deliveries, fragmented shipments, rapid delivery expectations, product returns, and low vehicle-load factors can increase environmental pressures, particularly in the last mile. Last-mile delivery represents the final stage between a distribution facility and the customer's delivery location and is one of the most operationally complex components of e-commerce logistics. This paper examines the relationship between sustainable e-commerce and carbon reduction in last-mile delivery from a Commerce and supply-chain perspective. It analyses the environmental implications of growing online sales and evaluates strategies including electric delivery vehicles, cargo bikes, route optimization, delivery consolidation, parcel lockers, urban logistics hubs, micro-fulfilment, alternative delivery models, green packaging, reverse logistics, and consumer participation in sustainable delivery choices.

The paper argues that carbon reduction cannot be achieved through vehicle electrification alone. A comprehensive approach is required that combines technological innovation, logistics consolidation, improved vehicle utilization, renewable energy, digital route planning, appropriate urban infrastructure, sustainable packaging, and behavioural changes among consumers. Urban logistics hubs can facilitate consolidation and the use of smaller zero-emission vehicles, while parcel lockers and consolidated pickup points can reduce vehicle-kilometres associated with door-to-door delivery. OECD/ITF analysis reports that consolidated package pickup and drop-off locations can reduce urban package vehicle-kilometres by 27% relative to a baseline based on door-to-door deliveries, while asset sharing across operators can reduce urban package vehicle-kilometres by 23%.

The study further argues that sustainability must be integrated with commercial objectives. Delivery speed, free shipping, low delivery charges, and free returns can encourage logistics practices that increase emissions. Consequently, sustainable e-commerce requires businesses to balance convenience, profitability, customer satisfaction, and environmental performance. The paper proposes an integrated framework based on five dimensions: green transportation, logistics optimization, delivery consolidation, circular and reverse logistics, and sustainable consumer behaviour. It concludes that carbon reduction in last-mile delivery is most effective when technological, organizational, economic, and policy interventions operate together.