The consequences of e-commerce on Green Logistics are little understood, but some trends
can be identified. As e-commerce becomes more accepted and used, it is changing physical
distribution systems. The standard retailing supply chain coupled with the process of
economies of scale (larger stores; shopping malls) is being challenged by a new structure.
The new system relies on large warehouses located outside metropolitan areas from where
large numbers of small parcels are shipped by vans and trucks to separate online buyers.
This disaggregates retailing distribution, and reverses the trend towards consolidation that
had characterized retailing earlier. In the traditional system, the shopper was bearing the
costs of moving the goods from the store to home, but with e-commerce this segment of the
supply chain has to be integrated in the freight distribution process. The result potentially
involves more packaging and more tons-km of freight transported, especially in urban areas.
Traditional distribution systems are thus ill fitted to answer the logistical needs of ecommerce.