Ecommerce giant Amazon has released a study indicating that joining the Climate Pledge Friendly program results in a 12.5 percent increase in sales for sellers on the marketplace. Especially products with low visibility profit from the program.
Online marketplace Amazon has been making an effort to reduce its carbon footprint over the last couple of years. In 2022, it announced that it would invest over 1 billion euros up until 2027 to decarbonize its transportation network in Europe. And last year, it started building micromobility hubs in the United Kingdom.
1.4 million products qualify for the label
In 2020, the ecommerce giant also launched its Climate Pledge Friendly program for sellers. This makes it easier for customers to find sustainable products. It now includes 1.4 million products from sellers in Europe and the United States.
Recently, Amazon has examined the effects of this label on sellers that are part of the program. The study included 45,000 products in the United States, as well as 45,000 products from sellers in Europe.
13.3% increase in gross merchandise sales
According to the results, joining the program led to a 13.3 percent increase in gross merchandise sales. It also lead to a 12.5 percent increase in sales, and 4.4 percent increase in shipped units in the 12 weeks after adoption of the program.
The sales increase was most notable in products with low visibility
Additionally, the sales increase was most notable in products that had lower amounts of viewers before the program than products with high visibility. These results indicate that consumers are more likely to buy products after they qualify for the program. This means that helping customers find sustainable products more easily can have effects on their shopping behaviors.
