Why Customers Expect Sustainable Packaging in E-commerce

Sustainable packaging is no longer a bonus—it’s a customer expectation. As the e-commerce landscape rapidly evolves in Singapore and across Southeast Asia, more consumers are choosing brands that reflect their values, especially when it comes to environmental responsibility. For digital retailers, packaging is now a key moment of brand trust, not just a delivery box.

 

In this blog, Egitech explores why sustainability matters more than ever in e-commerce packaging—and how your business can respond effectively with the help of smart technology and automation.

 

 

Why Sustainable Packaging Matters to E-commerce Customers

 

Customer expectations are shifting fast

 

According to a 2023 study by Ipsos Singapore, 73% of Singaporean shoppers say they prefer to buy from brands that use eco-friendly packaging. Similar trends are rising in Vietnam, where environmental awareness has grown significantly, especially among Gen Z and urban consumers.

 

Beyond price and product, today’s customers are asking: “What does this brand stand for?” And packaging—the first physical touchpoint in e-commerce—often answers that question.

 

 

Unboxing is a brand experience

 

In the age of social media, the unboxing experience has become part of the marketing funnel. Excessive plastic wrap, oversized boxes, or non-recyclable materials can trigger negative feedback—and drive customers elsewhere. On the flip side, minimalist and recyclable packaging earns customer trust, loyalty, and even free online promotion.

 

💡 85% of consumers in Asia-Pacific say that sustainable packaging influences their repeat purchase decisions. — McKinsey, 2024

 

It’s not just about being “green”—it’s about trust

 

When consumers see sustainable packaging, they perceive the business as thoughtful, future-ready, and values-driven. That perception extends to your brand’s tech-savviness, service quality, and long-term reliability. In markets like Singapore, where eco-regulations are tightening, customers are more likely to stick with brands that align with both values and compliance.

 

Figure 1. Growing importance placed on sustainability
when choosing brands in Asia Pacific (Source: NIQ 2023)

 

 

Common Barriers to Sustainable Packaging

 

“We want to go green, but it costs too much.”

 

One of the biggest myths is that sustainable packaging is always expensive. In reality, **initial cost may be higher, but long-term savings come from reduced material waste, better logistics, and fewer returns.** Still, the upfront investment can scare small and mid-sized brands, especially those scaling quickly.

 

In Southeast Asia, many SMEs still rely on cheap, bulk packaging with limited concern for environmental impact. Without proper guidance or support, making the switch feels risky.

 

Lack of infrastructure and supplier support

 

In Vietnam and even parts of Singapore, businesses may struggle to find **local, affordable suppliers** that offer certified compostable or recyclable packaging. On top of that, supply chains aren't always ready to handle new materials efficiently—especially in fast-moving industries like fashion or FMCG.

 

Without strong warehousing systems, sustainable materials can get damaged or wasted more easily, reducing the perceived benefits.

 

Disconnected systems, unclear data

 

Many brands don’t know exactly how much waste they produce—or how customers feel about their packaging. **Without integrated systems like OMS and WMS**, it’s hard to track packaging performance, returns due to damage, or customer feedback at scale.

 

⚠️ Packaging waste often goes unnoticed—until customers complain or costs pile up. Technology can fix that.

 

 

How Technology Can Help Your Business Deliver

 

Smarter warehousing, smarter packaging

 

With the right Warehouse Management System (WMS), businesses can streamline packaging processes from the ground up. Smart warehousing helps match box sizes to actual products, avoid overpacking, and reduce material waste —automatically.

 

SellnShip, for example, uses AI to optimize picking routes and packaging decisions based on product type, order volume, and available resources. That means fewer mistakes, smaller parcels, and faster delivery—without sacrificing protection.

 

Real-time data = real sustainable action

 

When Order Management Systems (OMS) and WMS work together, businesses get a full view of how packaging impacts cost, delivery time, and customer satisfaction. This data helps identify which SKUs cause the most waste or returns—so you can act fast.

 

Many brands in Singapore have started tracking these metrics through custom dashboards that combine sales data with logistics insights. Automation tools then trigger alerts when packaging inefficiencies cross certain thresholds.

 

Learning from VECA: Local tech, global mindset

 

Egitech previously developed VECA, an app that connects waste collectors with households and businesses in Vietnam. Through geolocation, scheduling, and incentive tracking, VECA encouraged better waste segregation and boosted recycling rates in urban areas.

 

🌱 VECA proves that with smart UX and localized design, even "hard to digitize" industries like waste management can transform.

 

VECA result (Source: Egitech)

 

Inspired by this, Egitech is open to partnering with e-commerce businesses in Singapore to build lightweight, tech-enabled packaging solutions—whether through automated labeling, material tracking, or return-loop systems.

 

 

Simple Steps to Start Your Sustainable Packaging Journey

 

1. Audit your current packaging and waste

 

Start by answering these questions: How much packaging are you using per order? How much of that is recyclable or necessary? What do your customers say in reviews?

 

A packaging audit—especially when powered by real-time order and return data—can uncover hidden costs and opportunities.

 

2. Pick one packaging KPI to improve first

 

Don’t try to change everything at once. Choose a clear metric—like reducing plastic use by 20%, switching 50% of mailers to paper-based, or lowering damaged returns by better fitting. **Track it weekly, not quarterly.**

 

3. Use tech where it creates the most impact

 

You don’t need a million-dollar overhaul. Start small. Implement barcode scanning to track packaging types. Use OMS data to match order profiles with ideal materials. Test AI-based box sizing in your busiest warehouse zone.

 

💬 Remember: sustainability is a process—not a switch. The goal is to keep improving without disrupting your customer experience or burning resources.

 

4. Collaborate with tech-minded partners

 

Look for local or regional partners who understand both logistics and software. If you're in Singapore and want to explore tools like packaging insights dashboards or packaging-as-a-service models—Egitech is open to co-developing lightweight, adaptable solutions.

 

From waste collection to warehouse automation, we're driven by the same mission: empower sustainable commerce with practical technology.

 

 

Key Takeaways

 

• Sustainable packaging is a rising expectation from customers across Southeast Asia, not just a trend.
• Challenges like cost, supply chain limits, and data gaps still hold many businesses back.
• Technology—especially OMS, WMS, and automation—offers real, scalable solutions for smarter packaging systems.
• Egitech’s VECA case proves how digital tools can transform even low-tech industries sustainably.
• Small steps like auditing waste, choosing clear KPIs, and finding the right tech partners are the best way to start.

 

Looking to build a smarter, greener future for your packaging? Let’s talk. Egitech is open for collaboration on tech-enabled sustainability projects.