Fashion's move towards ethical e-commerce

Radical transparency for ethical fashion e-commerce

Because of consumers' desire to support businesses embracing ethical practices, they are more aware than ever of empty statements and greenwashing efforts. Thus, increasingly, e-commerce consumers do their research and are quick to condemn companies that make misleading claims. Therefore, one path forward for fashion companies to grow with the boom in e-commerce is to embrace radical transparency.

The phrase 'radical transparency' was coined by Ray Dalio of investment banking firm Bridgewater, to describe his business philosophy of a direct, open, and honest culture of decision-making and communications. Now, companies across many industries are taking this approach to gain the trust of consumers in this culture of wariness. Fashion companies aiming to take part in ethical e-commerce then could utilise radical transparency to communicate openly with potential customers about the sustainability challenges associated with order fulfilment. For example, the emissions from last-mile delivery transportation and returns, as well as the material utilised for extra packaging, are all sustainability challenges when selling through e-commerce versus traditional retail stores. Forbes also calls this practice as building a 'glass box brand' in which consumers on the outside can freely look in to observe the business practices, processes, and people that their purchases would support.

In order for fashion companies to grow towards ethical e-commerce, partnering with a logistics provider that can offer radical transparency for the transportation and logistics of the fashion supply chain will be necessary. Technological innovations have enabled logistics companies the possibility to track and report emissions throughout all modes of transportation. These innovations are particularly helpful for companies aiming to capitalise on the growth in e-commerce, as it encourages companies to be mindful of not only their environmental impact in production, but also when delivering products directly to the consumer.

Ethical fashion e-commerce for sustainable growth

While lifestyle companies embrace the boom in e-commerce and bring their fashions directly to their consumers doorsteps, keeping pace with the demand of ethical fashion will be imperative for long-term growth. Luckily, the industry can partner with logistics companies to embrace radical transparency, earning the trust of consumers and encouraging business growth while ensuring environmental and social responsibility.