E-commerce microfulfillment — it's more than just a trend
It's 2024. Shoppers are becoming a lot more mindful of the impact online retail leaves on the environment, and sustainable deliveries will continue to have a pivotal role in the future of e-commerce.
According to recent reports, over 50% of digital consumers in Europe are concerned about the environmental footprint of online shopping, and 73% of shoppers would definitely or probably change their consumption habits to reduce their environmental impact.
For online retailers, sustainable deliveries don't necessarily mean an expensive endeavor with high fulfillment costs, because microfulfillment will be one of the fastest-growing trends in logistics throughout the 2020s.
E-commerce microfulfillment refers to a supply chain and logistics strategy designed to speed up the delivery of online orders by decentralizing distribution and storing inventory closer to the end consumer.
This approach typically involves the use of small-scale, warehouse-like fulfillment centers located within urban or suburban areas, as opposed to relying only on large, centralized spaces located far from the customer's reach.
Here's the best part. Microfulfillment centers (MFCs) can be integrated into your existing retail spaces to make your shipping operations faster and greener, either with an in-store pickup option or a ship-from-store delivery. Let's see how it works in a real-life e-commerce scenario.
Nudie Jeans, the success story of sustainable fashion
They don't just make clothes. They create future classics. Nudie Jeans is a Gothenburg-based denim brand that breathed new life into the Swedish word lagom — 'just the right amount'.
Their environmental philosophy was present even before the first collection was designed. They're not just in the business of selling jeans. They're in the business of making them a part of people's life for the long haul — 'forever jeans' customers would want to repair, not replace.
Nudie Jeans ships to over 50 countries worldwide. They think globally while acting locally. As of February 2024, Nudie Jeans offers domestic ship-from-store delivery options in several countries, including the Netherlands, United Kingdom, Australia, Germany, and Sweden.
They have ambitious plans to expand these options even further during the first quarter of 2024 — an achievement in their sustainability agenda, which involves years of partnership building and integrating with multiple carriers across the brand’s markets.
Nudie Jeans' delivery strategy combines sustainability and efficiency. First, the goal is to prioritize bulk warehouse deliveries to brick-and-mortar stores, while sourcing goods from sustainable suppliers.
Second, Nudie Jeans strives to leverage physical store inventory for last-mile consumer delivery to the largest extent possible and, in this way, minimize the volume of individual global shipments. It's an innovative combination that ensures both speed and eco-consciousness.
The brand's Dutch market makes an excellent, recent example of a successful microfulfillment strategy. Nudie Jeans' Amsterdam store, centrally located at the Nine Streets, or De 9 Straatjes, includes excellent staff and a substantial stock.
Given these advantages, it was a natural choice to implement a ship-from-store option in the city, just as Nudie Jeans has already been successfully doing in German, Swedish, British and Australian locations. What they also needed was a local carrier aligned with the brand's sustainability goals, and Peddler fit the bill perfectly.
Peddler Express, a hyperlocal spin to green deliveries
At Peddler, they're all about a sustainable, fast and effortless last mile. The company's roots in building a hyperlocal marketplace have uniquely positioned it to provide stores, leading retail chains and global brands like Nudie Jeans with the ultimate same-day delivery experience.
Peddler Express network operates in six major Dutch cities, including Amsterdam, Utrecht, Rotterdam, Groningen, Eindhoven and the Hague. Not only does the carrier service ensure that local customers always have what they need when they need it but also helps retailers make the best use of their local inventory and reduce the environmental impact of e-commerce deliveries.
As of today, Peddler Express fleet of light electric vehicles helps retailers achieve up to a 60 percent reduction in CO2 emissions on average. It also takes over 2500 diesel vans off the city roads in the Netherlands.
Now, how could Nudie Jeans reach their local Amsterdam customers and nudge them towards environmentally-conscious delivery options? How could Peddler stay on top of the customer's mind at e-commerce checkout and add more order volume to their Amsterdam operations?
With the right technology partner knowing how to connect the dots between the retailer, delivery carrier and consumers in a smart and easy way.
Ship-from-store, the new definition of last mile
In November 2023, in collaboration with Peddler and the delivery experience platfrom Ingrid, Nudie Jeans successfully went live with fossil-free bike delivery service, serving Amsterdam from the local store within 1-2 business days.
Nudie Jeans uses a descriptive 'fossil-free' tag, available for retailers in Ingrid Delivery Checkout, to inform customers of what exactly makes this hyperlocal delivery option sustainable.
"We’re committed to further reducing our environmental footprint while ensuring efficient service for our customers," Victor Sjöstedt, Supply Chain Coordinator at Nudie Jeans, shares. "Ingrid's ability to scout and integrate new carriers, provided the integration lead time is managed effectively, remains a valuable feature that they provide to merchants."
"Our 'slow but fast' delivery approach in Amsterdam is growing."
Victor Sjöstedt, Supply Chain Coordinator at Nudie Jeans
When an Amsterdam customer chooses to have their package delivered with Peddler instead of a regular, non-fossil-free delivery option from the centralized warehouse in Sweden, it contributes to Nudie Jeans' mission of significantly reducing e-commerce carbon emissions. As an added bonus for the customer experience, such a streamlined delivery model has the potential to improve the lead time for same-day package delivery.
"We’ve also started using Ingrid Tracking, which has proven to be a great tool, and the upgraded retailer's dashboard, which enables us to closely monitor conversion rates and the proportion of delivery options selected during the checkout process. I truly recommend Ingrid for retailers who share a similar mission centered around delivery optimization and sustainability. Throughout the years, our collaboration resulted in the creation of a streamlined and complex system that seamlessly enhances our omnichannel flow."
Join forward-thinking retailers
Nudie Jeans isn't just creating timeless denim — they're setting a new standard for environmental responsibility in the e-commerce world by prioritizing strategic supply chain partnerships and carbon-neutral delivery methods. Join us in celebrating and supporting brands that are committed to making a difference — and let us know if you'd like to become one.
