food waste

In recent years, e-commerce has revolutionised the way consumers shop, but its impact extends beyond convenience and variety. As the world grapples with climate change, the intersection of e-commerce and sustainability presents excellent opportunities for progress, especially in countries such as the UAE, where the e-commerce market is thriving and its revenue is expected to reach US$6.98bn in 2024. 

One of the most significant challenges we face in the modern marketplace is the staggering amount of excess inventory generated, particularly in the food sector. According to estimates by the Food and Agriculture Organisation of the United Nations (FAO), around one-third of food produced is lost or unused from production to final consumption per year. This is a significant economic loss of 2.6 trillion dollars.  However, we must realise that this is not just a financial concern; it represents a loss of resources, including water, energy, and labor. 

Forward-thinking governments such as the UAE have launched nationwide programs such as ne’ma, the National Food Loss and Waste Initiative, which aims to reduce 50 per cent of food waste by 2030. E-commerce platforms can play a transformative role in mitigating overstock by providing a marketplace for these items, inherently democratising product access, and allowing consumers to benefit from value-for-money price reductions.

In the past, the point of differentiation between e-commerce platforms was the price point however, in recent years customer convenience (through tech) has become an equally important point of differentiation and now looking into the near future we see a third point: sustainability, with 46 per cent of customers wanting to buy more environmentally responsibly. Platforms that offer overstock items provide a dual advantage: they not only help consumers save money but also encourage the purchase of products that would otherwise contribute to waste. By promoting the purchase of overstock items, these platforms are not only making responsible consumption more accessible but are also educating consumers about the importance of buying sustainably. 

Efficient Inventory Management 

One of the most significant advantages of e-commerce lies in its ability to streamline inventory management. Real-time tracking and data analytics allow sellers to identify overstock items quickly, enabling them to minimise excess inventory efficiently. This feature is particularly beneficial for suppliers to reduce their environmental footprint while increasing revenue. 

For instance, eJaby’s platform enables suppliers to manage their inventory effectively by providing a dedicated marketplace for overstock items. This model not only helps sellers reduce overstock but also fosters a culture of sustainability in business practices. By shifting the focus from traditional retail models that often lead to waste, innovative e-commerce techniques can be a catalyst for more responsible inventory management. 

Opportunities for Growth 

The future of e-commerce and sustainability looks bright as companies increasingly adopt eco-conscious practices. Now, many e-commerce platforms focus on reducing their carbon footprint by taking steps to switch from traditional ways to sustainable methods, such as using eco-friendly packaging and implementing more energy-efficient logistics solutions. 

Additionally, e-commerce provides a platform for companies to promote sustainable products, making it easier for consumers to access eco-friendly options. The shift toward conscious consumerism is gaining momentum, and e-commerce is poised to become a key player in the global movement toward sustainable shopping. 

As eJaby plans to expand into other Middle Eastern markets, we are setting a precedent for how regional e-commerce platforms can contribute to sustainability. This expansion not only reflects a growing demand for sustainable options but also signals a shift in consumer behavior, as more individuals seek to support brands that prioritize eco-friendly practices. 

Looking to the future, e-commerce has the potential to be a significant player in the UAE’s sustainability movement. However, this is just the beginning and there is an array of possibilities to explore when it comes to reaping the benefits of merging technologies and shopping. The relationship between e-commerce and sustainability holds great promise. In the coming years, e-commerce technologies will drive responsible consumption to reduce overstock, providing the best of both worlds: quality and value in every transaction while making a positive impact on the environment. 

By Menna Shahin, Co-Founder of eJaby 

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