April 12, 2023
SINGAPORE – One in three consumers here opted for reusable packaging for their e-commerce purchases in a pilot study conducted by World Wide Fund for Nature Singapore (WWF-Singapore).
Over a six-month period from April to September 2022, about 5,000 parcels out of 15,000 transactions with 12 participating retailers were in reusable packaging. The retailers dealt in a wide range of products, from healthcare to shoes and toiletries.
About 40 per cent of the reusable packaging was returned through a Singapore Post letter box or post office. On average, it took customers 16 days to return the packaging, with the slowest being three months.
The study found that consumers preferred to have convenience over incentives for returning the packaging. A few customers chose to keep the packaging for their own use.
For the study, WWF-Singapore partnered UOB, DHL Consulting, SingPost and Better Packaging Co.
WWF-Singapore chief executive R. Raghunathan said they embarked on the study to gauge consumer sentiment and behaviour about reusable packaging, and to demonstrate to retailers that the concept was viable if scaled-up.
Among consumers who opted for the reusable packaging, about eight in 10 later surveyed did so as it was the sustainable choice.
In a speech at an event launching the study report on Tuesday at Capital Tower, Mr Raghunathan said: “We are heartened by the findings from the pilot as it demonstrates Singaporeans’ willingness to do more for the environment while emphasising the pivotal role of retailers and industry players to create a new, sustainable e-commerce ecosystem that appeals to the public.”
Speaking at a panel discussion during the event, Ms Neo Su Yin, CEO of SingPost in Singapore, said: “People have different interpretations of what convenience means. We think SingPost’s network of 800 letter boxes and 56 post offices already makes it fairly convenient to return packaging. But sometimes even that’s not convenient enough.
“We should improve convenience such that the return of the reusable packaging becomes convenient by being on the way to work or home, so that it becomes truly convenient.”
An earlier survey by WWF-Singapore found that a total of 200,000 e-commerce parcels are delivered across Singapore every day, and this number is projected to grow by almost 50 per cent by 2025.
In the pilot study, 90 per cent of the participating retailers said the use of reusable packaging improved efficiency, as the sealing method of using Velcro was fast and simple.
About 40 per cent of the reusable packaging was returned through a SingPost letter box or post office. PHOTO: ST FILE
Retailers estimated they could get cost savings and there would be an environmental benefit when the packaging is reused at least four to six times, or has a return rate of between 75 per cent and 83 per cent. This would effectively reduce resources for production and transportation of single-use packaging.
But the process may be harder for larger online retailers, noted Ms Pritha Saraf, project manager of DHL Consulting, which was the research partner in the survey.
“A major consideration for many of the bigger companies in embarking on a pilot project is whether they are confident of scaling it.
“It’s not just a small experiment for them. Also, when these bigger companies have machines to pack the parcels, compatibility with the packaging and whether the parcels can move efficiently on the belt are major considerations. So I think it’s very, very difficult compared with a small-sized retailer implementing it,” she said.
Dr Yvonne Lin, materials experts at WWF-Singapore, noted that reusing, which uses the original item again without changing it, should be prioritised as more sustainable over recycling, which breaks down the original item into raw materials that can made into something new.
“Sometimes the argument is that it’s okay because the carton boxes are recyclable – some people even equate that as a circular economy. But actually, the circular economy is not just about recycling,” she said.
“Recycling is always the last resort. Not generating waste in the first place is the most important. So in the circular economy, we should always look for ways where we can reduce, if not reuse or recycle.“