Revolutionizing Reusables: A Bold Step Towards Global Sustainability
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In a world increasingly aware of the environmental impact of single-use items, Petaluma, California, is setting a remarkable example with its new reusable cup initiative. Starting next month, over 30 eateries in the downtown area will adopt a vibrant purple reusable cup, replacing disposable options. This innovative pilot program, which includes local cafes and major chains like Petal Pie Company, aims to make reusing cups as effortless as tossing a disposable one. This initiative not only marks a significant step for Petaluma but also sets a precedent for global efforts in making reusables convenient and economical.
A Collaborative Effort for Global Sustainability
The reusable cups will be provided free of charge and can be easily returned to designated bins located throughout the city. After use, the cups will be cleaned and redistributed to participating establishments, potentially eliminating hundreds of thousands of disposable cups from circulation. This initiative is spearheaded by the Center for the Economy at Closed Partners, with Kate Daly highlighting its significance as a pioneering effort in the U.S. to normalize reusable cups in restaurants.
The Importance of Consistency for Global Impact
For the program to succeed and be replicable globally, a shift from individual store initiatives to a city-wide approach is essential. Daly emphasizes that consistency and ease of use across various retailers are crucial to meeting customer expectations. Starbucks, which has conducted reusable cup trials globally, recognizes the challenges of ensuring cups are returned effectively to maximize environmental benefits.
A New Strategy for Returns on a Global Scale
Unlike previous attempts that relied on incentives for cup returns, the Petaluma pilot focuses on simplicity and accessibility. By saturating the city with the program and providing pickup services for cups taken home, the initiative encourages returns without requiring additional incentives. The messaging throughout Petaluma will reinforce the motto “Sip, Return, Repeat,” promoting a culture of reuse that can be emulated worldwide.
Designed for Functionality and Global Adoption
The reusable cups are designed for both hot and cold beverages, balancing functionality with an unattractive aesthetic to discourage customers from keeping them. The project will be monitored closely until November to assess its effectiveness, with feedback from restaurant staff being crucial to its success. This practical design and feedback loop can serve as a model for other cities and countries looking to implement similar initiatives.
A Blueprint for the Future of Reusables
With an estimated 50 billion single-use cups discarded annually in the U.S. alone, initiatives like the Petaluma project aim to shift away from this unsustainable practice. Daly envisions a future where a combination of personal reusable mugs and community options could eliminate single-use cups entirely, marking a significant step toward sustainability. This vision, if adopted globally, could lead to a substantial reduction in waste and a more sustainable approach to everyday consumption.
Leading the Way for Global Change
As this initiative unfolds, it could serve as a model for other cities and countries looking to reduce single-use waste and promote a more sustainable future. The Petaluma project exemplifies how community collaboration and innovative thinking can pave the way for meaningful change in our consumption habits. By making reusables convenient and economical, Petaluma is leading the way for a global shift towards sustainability.
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5 Simple Ways to Contribute to a Circular Economy
In today's world, where environmental concerns are at the forefront of many discussions, the concept of a circular economy has gained significant traction. At LimeLoop, we're passionate about creating sustainable solutions for shipping and packaging. But what can you do to support this shift towards a more circular economy? Here are five simple yet effective ways you can make a difference:
1. Embrace Reusable Packaging
One of the easiest ways to contribute to a circular economy is by opting for reusable packaging whenever possible. When shopping online, look for retailers who use LimeLoop's reusable shipping packages or similar sustainable options. These packages can be used over 50 times, significantly reducing waste compared to single-use cardboard boxes or poly mailers.
2. Return Reusable Packaging Promptly
If you receive a product in a reusable package, make sure to return it as soon as you've unpacked your items. With LimeLoop packages, it's as easy as zip, flip, and ship. Just zip up the empty package, flip over the pre-paid return label, and drop it in your mailbox or a USPS collection box.
3. Choose Products with Minimal Packaging
When shopping, opt for products with minimal or eco-friendly packaging. This reduces waste and encourages manufacturers to rethink their packaging strategies. Look for brands that prioritize sustainable packaging solutions.
4. Repair and Upcycle
Before discarding items, consider if they can be repaired or upcycled. Many products can be given a new lease on life with a little creativity or maintenance. This extends the life cycle of products and reduces the demand for new resources.
5. Support Brands Committed to Sustainability
Choose to support brands like Toad&Co that are actively working towards sustainability goals. Look for companies that use recycled materials, offer take-back programs, or are transparent about their environmental impact.
By voting with your wallet, you're encouraging more businesses to adopt circular economy principles.Remember, every small action counts. By incorporating these practices into your daily life, you're contributing to a more sustainable future and helping to "deliver a world without waste" – a mission we're deeply committed to at LimeLoop.
Join us in the reuse revolution and let's create a circular economy together!
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Embracing Circularity: 5 Compelling Reasons for Leaders
In an era of tightening environmental regulations and growing consumer sustainability awareness, embracing circularity is no longer just a choice for C-suite executives – it’s a strategic necessity. By minimizing waste and maximizing resource utilization, circular practices can mitigate risks, reduce costs, drive innovation, and create competitive advantages.
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In today's rapidly evolving business landscape, sustainability and resource efficiency have become paramount concerns for enterprises across industries. As all leaders navigate the complexities of modern-day operations, embracing circularity – a regenerative approach that minimizes waste and maximizes resource utilization – is no longer just a buzzword; it's a strategic imperative.
Here are the top five reasons why C-suite leaders should prioritize circularity in their organizational strategies.
1. Innovative Sustainability. Mitigating Environmental Impact and Regulatory Risks
As environmental regulations tighten and consumer awareness of sustainability issues grows, companies that fail to adopt circular practices risk facing hefty fines, repetitional damage, and potential legal liabilities. By embracing circularity, enterprises can proactively mitigate these risks, reduce their environmental footprint, and position themselves as responsible corporate citizens.
2. Sustainable Profitability. Enhancing Resource Efficiency and Cost Savings
Circularity is inherently geared towards optimizing resource utilization and minimizing waste.
By embracing circular business models, such as product-as-a-service, remanufacturing, or closed-loop reusables, enterprises can significantly reduce their reliance on finite raw materials, lower operational costs, and unlock new revenue streams through innovative product life-cycle management.
3. Driving Innovation and Circular Competitive Advantages
Embracing circularity fosters a culture of innovation within organizations.
By rethinking traditional linear business models and exploring new ways to create value from existing resources, enterprises can develop cutting-edge products, services, and processes that differentiate them from competitors and create sustainable competitive advantages.
4. Elevating Brand Equity. Attracting and Retaining Top Talent
Today's workforce, particularly younger generations, is increasingly conscious of environmental and social issues. By demonstrating a genuine commitment to circularity and sustainability, enterprises can enhance their employer brand, attract top talent, and foster a sense of purpose and engagement among their employees.
5. Future-Proofing Business Operations with Circularity
As the global economy transitions towards a more sustainable and circular model, enterprises that fail to adapt risk becoming obsolete. By embracing circularity now, all leaders can future-proof their organizations, positioning them to thrive in an increasingly resource-constrained and environmentally conscious world.
"The circular economy is becoming a core component of forward-looking business strategy. By rethinking the way we design, make, and use products and materials, companies can open up new opportunities for growth and value creation while reducing risks and increasing resilience." - Naoko Ishii, CEO and Chairperson of the Global Environment Facility
Implementing circularity is not just a matter of compliance or public relations; it's a strategic imperative that can drive long-term value creation, innovation, and resilience for enterprises. As leaders, the time to act is now – by integrating circularity into their organizational strategies, they can pave the way for a more sustainable, efficient, and future-ready business landscape.
Want to learn more about embracing circularity. Let's grab a coffee.
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From disposable to durable: Making the change to reusable packaging
In a world driven by convenience, we've become accustomed to the luxury of disposable packaging.
Plastic and cardboard containers have become a ubiquitous part of our daily lives, serving as vessels for everything from our morning coffee to the products we order online. While these materials offer convenience, they also contribute to an ever-growing environmental problem. Plastic pollution clogs our oceans, and landfills overflow with cardboard boxes.
Amidst this convenience, it's crucial to recognize the scale of the issue. Of the 40 millions of plastic waste generated in the U.S. specifically in 2021, only 5% to 6% - or about two million tons - was recycled. And before you say that many of these packaging options are made of recycled materials and can be recycled, there’s a lot more to this than meets the eye. We’ll get into it a little later…
However, what is clear is that a change is needed.
Recyclable doesn’t make it better
A common misconception is that if something is recyclable, it is better for the environment. Why do many believe that? Because it’s what we’ve been told from big brands across the nation.
If it’s recyclable it’s sustainable, right? Hardly.
Did you know that over 90% of products in the United States are shipped in corrugated cardboard boxes? The amount of cardboard boxes that get broken down each year, month, day even is extraordinary. And, the amount of poly mailers that are also either recycled or thrown away each day should be illegal.
Here are 3 specific reasons to move to reusable packaging.
- Efficient
One of the key advantages of adopting reusable packaging is the efficiency it brings to your supply chain. Traditional disposable packaging, like cardboard and poly mailers, often end up as a one-time-use waste, requiring constant restocking. Sometimes, brands can get 2 uses out of this kind of packaging in their ecommerce shipments, but it’s honestly somewhat rare as consumers have made it a habit to toss their packaging the moment they open…
Reusable packaging, on the other hand, is designed to withstand multiple trips. This reduces the need for constant replenishment and decreases the environmental footprint of your supply chain.
Moreover, you'll save on resources, transportation costs, and labor associated with constantly replacing disposable packaging, making your operations more streamlined and cost-effective. - Economical
Many businesses are hesitant to transition to reusable packaging because they perceive it as a costly investment upfront. However, the long-term financial benefits are substantial. By replacing just 20% of single-use plastic packaging with reusable alternatives offers an opportunity worth at least $10 billion. That’s huge long-term. While the initial investment might be higher, the durability of reusable packaging means you'll save money over time. Instead of constantly purchasing disposable materials, you'll make a one-time investment in packaging that can last for years.
Your bottom line will reflect the cost savings in the form of reduced waste, decreased transportation expenses, and lower packaging procurement costs. - Environmentally friendly
Disposable packaging generates an astonishing amount of waste that can take hundreds of years to decompose in landfills or poses a serious threat to our environment as plastic pollution in our oceans. Every year 19-23 million tons of plastic waste leaks into aquatic ecosystems, polluting lakes, rivers, and seas.
It isn’t just the oceans that we are worried about as well. Walk down a city block near you later today. How much trash do you see in the gutter? Along the sidewalk? Overflowing trash bins? How much of this trash is from some form of packaging? Case in point…
Reusable packaging promotes sustainability. While the packaging you use for your retail items may not be what’s polluting the streets, many of it does end up in oceans and it does wreak havoc on our ecosystem. By choosing durable materials and implementing a circular approach to your packaging, you reduce your carbon footprint and contribute to a cleaner, more sustainable future.
Change is good
We hear time and time again that change is scary, but it doesn’t have to be. Transitioning to reusable packaging with the right partner and a clear strategy can be smooth and seamless.
The shift from disposable to durable, reusable packaging is not just a trendy idea; it's the way of the future. It offers substantial benefits to your business, from increased supply chain efficiency to long-term cost savings and a smaller environmental footprint.
And with the right partner who will help you identify where a reusable solution works in your supply chain, how to mitigate any potential risks and guides you on implementation, you’ll be in great hands. Ellen MacArthur, Founder of the Ellen MacArthur Foundation, said, “Rethinking the future: It is a profound challenge, at the end of an era of cheap oil and materials to rethink and redesign how we produce and consume; to reshape how we live and work, or even to imagine the jobs that will be needed for transition.”
Together, we can build a more sustainable and responsible future for our planet, one package at a time. The days of wasteful plastic and cardboard packaging are numbered, and by making the change to reusable packaging, we're paving the way for a more sustainable and efficient future for all.
To learn more about LimeLoop’s reusable packaging, including our LimeCare–your own dedicated Reuse Specialists–schedule a meeting with no strings attached.
The problems with recycling
Since you were young, it’s been ingrained in you that recycling is essential for our planet. Your milk carton? Goes in the recycling bin. Your empty yogurt cups? Recycled! Cardboard boxes? Drop it in the recycling bin.
And now you can say you’ve done your part for the planet!
Unfortunately, it isn’t that simple and it doesn’t actually solve as much as we want it to. Or said another way, we aren’t actually solving the root issue when we recycle. Virgin materials will still be used to create new items, and what you’ve recycled may not actually get recycled due to municipality regulations and/or due to contamination–whatever your neighbors and/or others have dropped into the recycling bin as well.
In the United States, the recycling landscape is a bit of a mixed bag, with numerous challenges along the way. Do you know where your recyclables actually go?
A day in the life of recycling
When you toss your aluminum cans, plastic bottles, and paper products into the recycling bin, you expect them to have a second life because that’s what you’re told. Sadly, that’s not always the case.
Once your recyclables are picked up, they're sent to recycling centers. These centers sort and process the materials, preparing them for the next step. Some materials are transformed into new products, while others are exported to countries like China, which used to be a significant player in recycling until it imposed stricter regulations in 2018.
Only 9% of items recycled actually get recycled. 9% is nothing when you see full recycling bins along your street or within your building complex. One time, I saw a TV in the recycling bin in my complex…what!
Ongoing challenges
In the United States, recycling challenges include product contamination, limited infrastructure, and a fluctuating market demand of materials. All of these make it so that staying on top of what can and cannot be recycled, how to physically recycle something, and the convenience of it is really challenging to stay on top of.
Contamination
Contamination happens when non-recyclable items get mixed in with recyclables, making the sorting process more difficult. Similarly, it’s imperative that you clean out your recycled items before dropping them in a bin. Those almond butter containers can’t have an excess of almond butter left inside them if you want it to make it through the recycling process. Same with those tomato sauce jars or cans of beans.
Subsequently, are you up to date on what can and can’t be recycled?
Glass, aluminum, paper and cardboard are all pretty standard recyclable materials–as long as they are free and clean of other materials (this includes tape on cardboard boxes!) Where it gets confusing is when it comes to plastics. Those numbers on the bottom of plastic containers are called resin identification codes, and they indicate the type of plastic used. These numbers range from #1 (PET) to #7 (Other). Unfortunately, the presence of these numbers doesn't guarantee that an item will be recycled. It depends on the recycling facility's capabilities and local regulations.
So, depending on where you live, that plastic bottle you diligently put in the recycling bin might not be living its best life after all…
Limited infrastructure & fluctuating demand
Insufficient recycling facilities and low demand for certain materials often lead to recyclables ending up in landfills. The pandemic played a big part in this as well considering many didn’t want secondhand with trying to stay safe and virus free. This is pretty consistent across the entire US.
What makes it more challenging is that different cities and regions are able to recycle some items that other areas are not. Do you know what you can and cannot recycle in your district? What's recyclable in one city may not be in another.
This lack of standardization can confuse consumers and increase contamination rates. To tackle this issue, it's been left up to you to stay up-to-date and current on what is and is not recyclable in your area.
Does it really end up in landfills though?
Even with all your good intentions, a significant amount of recyclable material still ends up in landfills. According to the U.S. Environmental Protection Agency (EPA), in 2018, more than 146 million tons of waste were sent to landfills. That's a lot of missed opportunities for recycling! Especially when plastics accounted for over 18% and paper and paperboard made up about 12%.
However, there are many efforts underway to improve recycling infrastructure, reduce contamination, and boost domestic recycling markets. Consumers can do their part by being more aware of what they're recycling and striving to reduce waste in the first place. I.e. making more conscious purchasing decisions.
Questions you can ask yourself before purchasing something can include:
- Do I really need this?
- Where will this go if I purchase it?
- Will this help with a sustainable lifestyle?
- What joy will this item bring me?
- Will I still use this item in a year? In 5 years?
- Do I have something at home like this already?
- Does this item truly serve a purpose or do I just like the aesthetic?
- Will this item be thrown away after one use?
In other words, rather than focus on recycling at the end of life, why not focus on reducing your intake and reusing what you already have?
To learn more about LimeLoop’s reuse programs, schedule a call with one of our Reuse Specialists today.
Why quitting cardboard should be a top priority
If you’re anything like me, you recently found yourself basking in the glow of a beautiful holiday season. With a smile on your face you looked around a sitting room at your family members, felt the pleasant warmth of a full belly, watched exuberant children play with a new toy, and noticed a slight sense of panic due to the stacks of cardboard boxes littered around the room.
This feeling of cardboard overwhelm would only increase once it came time to take out the recycling. Your bin, like mine, will undoubtedly be full. So maybe you’ll find yourself sneaking down the street at midnight, hoping you can find space in a neighbor’s recycling bin, knowing the entire time that every single bin will be just as full as your own…
This will launch a weeks-long process in which you frantically search for recycling bin space and fight the rising tide of every-day recyclables that are building up behind your holiday cardboard log jam.
If this feels familiar, that’s because we all live in a world powered by single-use cardboard.
And if you feel bad about it, it’s not just you gnashing your teeth at all the waste you’re witnessing.
The question is, how can any person or any company be part of the solution when we live in a world where every day in the retail supply chain looks and feels like your living room does on Christmas morning?
Breaking down cardboard
Understanding the scope and scale of cardboard manufacturing:
- American factories generated more than 400 billion square feet of cardboard in 2020
- The global production of cardboard was estimated to be 66 million tons in 2020
- Cardboard output is forecasted to increase to more than 72 million tons by 2022 (25% increase)
- By 2025, the international market for corrugated packaging will be over $205 billion
- Amazon shipped an estimated 7.7 billion packages in 2021 (however, not all of these were in cardboard boxes)
- Cardboard packaging can be recycled and made into new packaging up to 7 times (which really isn’t that many)
If global cardboard consumption continues at this rate, we’ll have a real problem…
Cardboard kills, somewhat literally
The problem with single-use cardboard is that from the beginning of its life to the end of its life, there’s no real solution to make it truly sustainable.
Instead, we’re cutting down forests and using billions of gallons of water to produce it. Then, we recycle it assuming it actually does get recycled. Yet much of this single-use cardboard that powers the retail supply chain ends up in a landfill, while new cardboard is created destroying not only forests, but the entire surrounding habitat that nurtures our wildlife.
Think of it like this, a tree in the ground fights global warming by absorbing carbon dioxide. Cardboard in a landfill, which is where all cardboard eventually ends up, releases methane, one of the most harmful greenhouse gasses. The question is, do we want trees to be growing and storing carbon, or do we want to continue contributing to the global explosion in the use of corrugated cardboard packaging?
You know that disheartening feeling of cardboard overwhelm that you had on Christmas? Take it and multiply it by 365 days and 300 million people’s needs to begin understanding the daily reality at retail locations and distribution centers.
Is there a solution to this problem?
Since we’re all in this together, we should all start looking for solutions together.
That’s why LimeLoop is dedicated to quitting cardboard.
LimeLoop helps brands transition to reusable packaging from single-use cardboard in their supply chain from first mile, middle mile to last mile.
The future is bright in the reusable space and there is a world where you can save money and increase efficiency by switching away from single-use cardboard packaging.
If you are interested in learning more about the benefits of quitting cardboard, start with your free Sustainable Packaging Evaluation.
Sadly, holiday waste is only going to get worse this year
The beginning of October means that the holiday season is just around the corner. And, with the holidays, that means an increase in shopping which ultimately leads to more returns, or in other words more holiday waste.
We live in a world where ordering more rather than less is the norm so if something doesn’t work, we ship it right back. And we’ve become accustomed to this approach.
Last year, returns reached a record high after the 2021 holiday season.
- Ecommerce made up 20.9% of total U.S. retail sales in 2021
- This is up 11% compared to 2020
- UPS shared that 21% of adults made a return before Christmas day in 2021
- 60% of people prefer to make a return by carrier rather than in person
Holiday returns are inevitable.
Will 2022’s holiday waste look the same?
Unfortunately, yes.
We are still on an upward trend of holiday waste when it comes to returns rather than a downward trend.
Looking back at 2021 again:
- An estimated 8.75 million packages are returned the first week of January
- 17.8% of merchandise sold is estimated and expected to be returned both online and in-person.
- Returns have increased for 8 consecutive years
Returns are going to continue in ecommerce which is why creating a circular economy becomes that much more important.
"The returns problem is only going to continue increasing this year and in the coming years," Optoro director of sustainability Meagan Knowlton said in January of this year (2021). "And luckily, quite a number of retailers and brands in the market are recognizing it as a problem, but also as an opportunity."
Who/what/where suffers the most with returns?
We like to look at this in two ways:
- Your bottom-line
- The environment
Your bottom-line
Naturally, your bottom-line is the first thing that comes to mind when thinking about returns around the holidays.
When more than 15% of merchandise sold is expected to be returned, it impacts your entire supply chain:
- Operational efficiency is impacted
- Warehouse storage becomes a priority
- Products are returned to sit in a warehouse
- Additional employees and management may be needed
- Operational costs increase
- Return labels are needed
- Additional shipping materials may be needed
- Increased transportation costs from stores to warehouses arise
- And, cleaning and repairs join the party…
According to a recent study, in 2021 it cost $33 for retailers to process a $50 return item, a 59% increase over the previous year.
Refunds are really just the start of a retailer’s costs…
The environment
Sustainability goals are inevitable for retailers today.
Returns create a challenge when it comes to your sustainability goals as most become holiday waste and in most cases, additional paper, labels, boxes, bags, etc. may be needed to get your returns back to your warehouse or business by carrier rather than in person.
Even returns in person may use some of these additional items as well as they get transported from your storefront to your warehouse anyway…
According to a 2018 report, returns account for five billion pounds of waste sent to landfills and 15 million tons of carbon emissions every year in the United States.
Cue “reusable packaging”
You’ve heard the phrase “reduce, reuse and recycle” time and time again.
The United States designed its current recycling program over 50 years ago to take on cardboard consumption from retailers. While effective in its day, recycling centers and the planet can’t keep up with the ecommerce influx causing waste and recycling programs.
It just means that we’re focusing too heavily on the latter rather than the former: reducing and reusing.
Reusable packaging takes recycled waste and turns it into something we can use over and over again. And with reusable packaging, there typically comes increased visibility into your supply chain as technology is a forefront of this operation if partnering with the right company.
Retailers can use reusable packaging to:
- Enhance and reach their sustainability goals in reducing:
- CO2 emissions
- Water use
- Land use
- Oil and plastic use
- Increase visibility into your supply chain through sensors that track location, temperature management and consumer behavior
- Increase your triple bottom-line overtime
With holiday shopping and holiday returns just around the corner…
Are you ready to move to a reuse model for your shipping and packaging needs?
Get started with a LimeLoop Reuse Specialist. We’ll discuss your logistics and supply chain needs along with your sustainability goals to strategize what works best for your business.
Get started today.
Designing for an Ecommerce economy
We now live in a digital culture.
And it has fundamentally shifted the shopping and packaging experience from the corner store (1900’s) to the store and the door (1990’s). Key examples include companies that have embraced the change – Warby Parker (once Lenscrafters), Third Love (once Victoria Secret, now For Love and Lemons ), Everlane (once Gap), and Casper (once Serta). Companies are using digital to create a brand, and a brand experience, rather than push products. For example, Casper, which doesn’t promote itself as merely a mattress company, but rather a digital-first brand focused around the concept of sleep. Jonathan Ringan noted, in Fast Company:
“Casper sees itself less as a simple mattress company and more as a lifestyle-driven enterprise that looks at sleep as a unique, optimizable category comparable to exercise or cooking or travel.”
With increased clickable convenience, online shopping continued to gain momentum. According to a 2016 Pew Research Center study, by desktop or mobile, 79 percent of Americans made purchases online – compared with 22 percent in 2000. In addition, 15 percent of adult shoppers made an online purchase once per week and 28 percent made multiple monthly online purchases. In 2017, 5 billion items worldwide shipped with Amazon Prime (63 percent of Amazon customers).
Further still, momentum propelled ecommerce forward as the pandemic kept people inside and shifted retail away from brick and mortar, seeing a 25% spike in March 2020 alone. The digital age transformed the supply chain over the years, but the future of ecommerce is here. Therefore, designing for an ecommerce economy, for a circular economy, requires retail and ecommerce retailers to think outside the current systems still designed for the corner store, from point of order to delivery. If not, we’ll see a widening post-purchase gap, rising unsustainable costs to people and the planet, and a continuing shift in global relations and processes.
Post Purchase Gap
First, it is important to look at the experiential economy or specifically in this case, the post-purchase gap and how it relates to future generations. Millennials crave a new experience both in store and at the door. Gen Z, at 60 million strong in the United States, demand it. “Compared to any generation that has come before, they are less trusting of brands. Authenticity and transparency are two ideals that they value highly,” says Emerson Spartz, CEO of the digital media company Dose.
Today, when a customer makes a purchase online, there’s an “experience gap” from the time the customer checks out to when the product arrives. This is the new experiential moment for digital shoppers. According to Amit Sharma at HBR,
“Providing a positive experience at this time of anticipation is a tremendous opportunity for retailers to deepen their relationships with customers and build loyalty for their brands. Surprisingly, only 16% of companies are focused on customer retention, even though it costs at least five times more to acquire a new customer than to keep an existing one.”
More than ever, customers want personalized shopping experiences from point of order to delivery and beyond. And with customer LTV becoming more and more important as the ecommerce momentum continues to push the boundaries of what’s possible, retailers find themselves paying higher and higher costs while the gap between consumer and retailer continues to widen. When is enough, enough?
UNSUSTAINABLE COSTS
Ecommerce customers, today, receive their products in a cardboard box, most likely in an OCC (old corrugated cardboard). The continued growth of online shopping and retail closings (70 million sq ft to close in 2018) have created a massive transition in the OCC (old corrugated containers) recovery market.
“There is a shift taking place and it’s more from the consumers. It’s a question of where that packaging material is going to end up and is it going to be as easy for us to capture,?” said Ben Harvey of Massachusetts hauler.
The United States designed its current recycling program over 50 years ago to take on cardboard consumption from retailers. While effective in its day, recycling centers and the planet can’t keep up with the ecommerce influx. And, the world is changing more in 10 years now than it used to change in 100 years, including rates and ways each generation consumes.
To keep up with the rapid change, innovative recycling companies are revamping their current systems. For example, Recology, a San Francisco serviced recycling center, is investing over $11 million dollars to add new processing equipment and supporting citywide taxes (15%) to account for the massive shift in receiving recycling from consumers versus retailers. While Recology is revamping to create temporary solutions, we must consider if the rest of the country can keep up with the rising cost and the impact to the environment we live in.
Today, humans are currently consuming nature 1.7 times faster than ecosystems can regenerate. The average American consumes its weight in trash each month and 165 billion packages and envelopes are shipped each year. Sixty-five billion parcel packages are shipped worldwide. 178 million parcel packages are shipped daily. This is a daily consumption of 1.2 million trees, 242 million gallons of water, and 5 million gallons of oil.
With the future of retail, we must consider the triple-bottom line – people, planet, and profit – as we build out more sustainable systems and collectively work to reduce and reuse what’s in circulation already, rather than just recycle.
SHIFT IN GLOBAL RELATIONS
To top it off, a recent shift in global policy will continue to impact the current supply chain systems in place. For example, the U.S. exports about one-third of its recycling, and nearly half goes to China. For decades, China has used recyclables from around the world to supply its manufacturing boom. But last year, it declared that this “foreign waste” includes too many other non recyclable materials that are “dirty,” even “hazardous.” In a filing with the World Trade Organization the country listed 24 kinds of solid wastes it would ban “to protect China’s environmental interests and people’s health.”
With e-commerce on the rise, the question becomes, do we revamp outdated systems or design a new one to solve for the growing costs to people and the planet? At LimeLoop we are designing a new one for the digital culture. Specifically, we are reimagining the packaging experience. First, by replacing recycled packaging with reusable packaging. Second, with sensored packaging to complete the brand experience loop. Packages that are received and sent back and reused, over and over again. With insights in where your package is and its state at all times, too boot. In return, is a high integrity system and experience for an environmentally sound world for many generations to come.
The need for a circular solution
With the rise of consumerism, and the continued expectation of convenience and fast delivery, online shopping undoubtedly embedded itself in our culture. In a letter to shareholders, Amazon CEO, Jeff Bezos revealed they have more than 100 million Prime subscribers. The digital economy has officially arrived. Inevitably, every new age brings with it a new set of challenges.
E-commerce’s rise simultaneously resulted in a momentous rise in packaging waste. At LimeLoop, instead of focusing on the existing packaging solutions – traditionally cardboard boxes and plastic poly mailers – we chose to re-imagine an entirely new shipping landscape and introduce a circular solution: smart reusable packaging.
Why, you ask, do we need to consider alternative shipping materials? After all, cardboard boxes and paper mailers are recyclable. As it turns out, recycling is a complex matter. What consumers understand as recyclable has led to a significant amount of non-recyclables making their way into single-stream containers. From plastic bags, organic matter to metal… you name it. Today, the average contamination rate sits at approximately 25%, which translates into 1 in every 4 non-recyclable item being placed in a recycling container.
For example, when foods or liquids contaminate good cardboard and paper, their value is lost and, are then, un-recyclable. Papers can only be recycled 5 to 7 times before the cellulose fibers become too short, as stated by the U.S. Environmental Protection Agency (EPA). And with rising recycling costs and as much as we like to think our packaging materials are being recycled, that is not entirely accurate.
The Circular Solution
Rather than emulating the current packaging and shipping ecosystem, we decided to shift our thinking towards envisioning a different kind of shipping landscape. We asked ourselves, what if we shipped items using something that is not a cardboard box? What would that look like? How would it move an item from point A to B? Beyond product, what else could this shipper hold? How would it interact with the user and the environment? And the list goes on.
In this stage of the brainstorming process, we don’t edit ourselves. No question is stupid, and no answer is correct (or wrong). The goal is to think outside of the (cardboard) box, literally, and examine the root of the problem. Essentially, we were looking to solve for packaging waste in a sustainable way, as opposed to designing a single product to replace the cardboard box. This means examining form, function, and material use for the entirety of the product lifecycle. The result: a full-circle shipping solution in the form of a reusable, trackable shipper that lasts up to 10 years.
How it Works
The LimeLoop shipper is made from recycled billboard vinyl and is designed to be reused over and over, in place of a cardboard box or mailer. Designed to be modular, the shipper can snap and contract as needed. When expanded, the shipper is large enough to hold up to 11 adult shirts comfortably. Waterproof, abrasion-proof, and trackable, the shipper is built to last up to 10 years. This extended lifecycle reduces carbon emissions, energy, and the consumption of valuable resources such as trees, water, and oil.
When you receive your order from participating brands, all you need to do is take your product out, flip the mailing label over, and put the shipper back in the mailbox instead of in the trash. The shipper is then mailed back to the brand so it can be used again for the next customer. As we like to say, it’s as easy as zip, flip + ship.