3 Warehouse Updates to Help E-Retailers Build an Ethical Identity
Creating a competitive advantage has become challenging in today’s competitive world. Innovative products and services come first to mind. But innovation needn’t limit itself to tangible offerings. Another sustainable way to establish a favorable brand identity is through ethical conduct.
E-commerce companies can find this route particularly helpful. They often face criticism for security threats and data misuse. Some of them allegedly use predatory pricing that harms local retailers. Ethical recentering will help e-tailers develop an identity that resonates with customers.
In general, e-commerce has been growing worldwide. Some industry experts feel it can progress four times faster than in-store sales until 2028. Emarketer reported a growth of 8.7% in 2024, which amounted to over $1 trillion.
However, sustaining this growth will require ESG investments, i.e., environmental, social, and governance considerations. Warehouses are core to an e-commerce retailer’s business, making them the perfect starting point.
Here are three practical ideas for upgrading warehouses to improve their sensitivity toward the environment and the community.
#1 Greener Warehouse Design and Construction
The number of warehouses in the US is going up. Statista notes that big-box warehouses grew by over 1,800 in 2023. The country has almost 8,000 large-scale distribution centers and many smaller ones. Responsible e-commerce firms can consider several ways to make warehouses greener.
Eco-friendly construction materials are an excellent option for new construction. These can include bio-based timber, reclaimed wood, or recycled steel. The World Economic Forum reports that sustainable building choices can mitigate climate change. Further, some options, like timber, are more cost-effective to build and maintain.
Besides construction materials, e-commerce players must also consider energy efficiency in lighting. Smart-lighting solutions can reduce electricity bills by detecting occupancy. Likewise, LED bulbs are more energy-efficient than conventional CFL ones.
The International Institute for Sustainable Development recommends a shift to renewable energy. Firms can use it across logistics to make a conscious difference to climate change. For example, Alibaba has committed to using solar power in its facilities. It will help the company achieve its emission goals by 2030.
A warehouse with an optimal floor plan helps the company optimize commercial gains and cement its commitment to sustainability goals.
#2 Handling Fires Without Endangering Workers’ Health
Some areas in a warehouse are prone to catching fire, like storage tanks and loading racks. A warehouse with wider aisles will be safer as the fire won’t easily jump across racks. Standard fire protection guidelines recommend eight-foot aisles.
In case of a fire, warehouses use inbuilt sprinkler systems that can work in different weather conditions. The International Fire & Safety Journal observes that many businesses also use AFFF for these incidents. The aqueous film forming foam is integrated into fixed foam systems for immediate redressal of a fire.
However, in recent years, AFFF has come under scrutiny for its links to cancer. Firefighting foam cancer can be of many types, affecting the bladder, kidney, or liver. Medical professionals have also noted reports of prostate and testicular cancer.
Warehouse workers can face continuous exposure to these forever chemicals. Their risk is higher during prolonged shifts. TorHoerman Law reports that industrial workers may suffer health concerns from PFAS exposure. Polyfluoroalkyl substances, or PFAS, are a core ingredient in conventional firefighting foam.
In this context, e-tailers must explore safer firefighting options that don’t affect workers’ health. Research on fluorine-free foam is ongoing. However, it will take time to become viable. Soy-based foam is also an option worth pursuing due to its biodegradable nature.
Until alternatives are widespread, e-commerce firms can partner in research initiatives with industry bodies and express their support for the cause.
Companies must also extend health monitoring to warehouse workers. Periodic cancer screenings can lead to an early diagnosis and improve treatment and recovery prospects.
#3 Drawing a Line Between Surveillance and Privacy
A recent survey by the Washington Center for Equitable Growth has eye-opening findings. Many workers across the US dislike automated surveillance and continued workplace monitoring. Such technologies relate to unfavorable outcomes for both health and safety.
The report also noted how monitoring at Amazon’s warehouses is dangerous for workers. Some of them have started working at unsafe speeds. The BBC reported that Amazon’s micromanagement is a potential violation of the GDPR. The General Data Protection Regulation lays down concrete guidelines for data security.
The awareness of privacy and protecting sensitive data is increasing. So, such monitoring practices will face criticism. An e-commerce company relies on warehouse workers to prepare and ship orders without delay. Antagonizing its staff through intrusive surveillance can have far-reaching consequences. It will bring down the productivity and engagement of the workforce.
Warehouse workers are unlikely to resist monitoring that enhances their health and safety. However, surveillance that intends to discipline or cull worker feedback is questionable. It will place the company’s ethical standing under scrutiny.
E-commerce companies can conduct employee surveys to find sources of conflict and dissatisfaction. A collaborative approach is better for a healthy balance of monitoring and freedom.
In a post-pandemic world, focusing on ethics has assumed even more importance. Clients respect responsible and resilient companies, not manipulative and selfish ones. As e-tailers rely on consumer confidence for sales, aligning with their priorities is key.
A renewed ethical focus will also help e-commerce players emerge from growing distrust. It will be vital to expand ethical practices to cover data protection and fair pay for workers. These measures must underline concrete ways to lower the carbon footprint. The action can begin in the warehouse.