More and more ecommerce companies are considering how a circular approach, with the support of digital technology, can reduce their footprint and help consumers do the same.

Growing emissions and decreasing resource capacity have sparked an increasing interest in a circular economy model among ecommerce companies worldwide. In contrast to the linear economy, where each new innovation (i.e., switching hub, phone, appliance) renders existing offerings obsolete, a circular economy considers sustainable design from the beginning — and in each stage — of product development and use to give material goods a different life cycle. Many ecommerce companies are considering how this approach, with the support of digital technology, can reduce their footprint and help consumers do the same.

However, there are challenges associated with realizing circular models. Rethinking and overhauling product development to be sustainable from the beginning is a feat in itself. Changing overall business operations to lay the groundwork for becoming a more environmentally friendly company is also a notable task. But a circular economy also expects a lot from end users — who must unlearn ingrained consumption and disposal habits to now use products in new, more sustainable ways. It’s a lot to consider and problem-solve.