Austrian Post Releases Evaluation on “Green Packaging”

Exactly one year ago, the Austrian Post and the University of Applied Sciences Upper Austria, together with five local retail companies – dm, INTERSPAR weinwelt, INTERSPORT, Tchibo, and Thalia – introduced the “Green Packaging”: a pilot project for reusable packaging in online retail. Now, the scientifically supported results of the pilot test are available. The Post aims to take the next step and will offer the “Green Packaging” as a regular service to all shipping customers starting in spring 2023.

(Wien) “We have intensively tested the ‘Green Packaging’ for half a year and can proudly say that the practical test was a complete success. The packaging used withstands several shipping cycles and is returned by the customers. The strong interest from our shipping customers, the results, and the positive feedback from recipients clearly indicate that we will make the ‘Green Packaging’ available as a regular service next year,” says DI Peter Umundum, Director of Parcel & Logistics, Austrian Post AG.

“Our analyses have shown that the use of reusable packaging can bring ecological advantages and is also very well received by end consumers. We hope that our results will encourage a variety of other retail companies to take the step towards reusable packaging. This way, we can lay an important foundation for the functioning of the circular economy!” explains FH-Prof. DI Franz Staberhofer, Head of the Logistics Institute at the University of Applied Sciences Upper Austria.

The pilot test was monitored with a strict carbon footprint analysis by the University of Applied Sciences Upper Austria. This calculated the climate impact of packaging throughout its entire lifecycle, including the production of the packaging, delivery, and the energy consumption during acceptance, sorting, and delivery by the Post. The carbon footprint analysis provides a comprehensive picture of the “Green Packaging” in terms of sustainability.

Long Durability and Packaging Deposit

The pilot test of the “Green Packaging” took place from March to September of this year, with several thousand orders shipped using reusable packaging. The following results emerged after the pilot test:

• Suitability of the packaging: Small packages with little to no filling material are suitable for many product categories. The return via mailboxes, Post offices, or self-service zones of the Post, along with the return transport to the retail companies, worked smoothly.
• Durability: All packaging passed the pilot test well. In practice, ten to twenty shipping cycles per package are considered realistic. Packaging that can be shipped up to 100 times is lost due to the return rate before reaching this mark. As a result, longevity cannot be optimally utilized. Packaging should therefore be inexpensive and functional rather than expensive and particularly durable.
• Acceptance by recipients: The willingness to return packaging strongly depends on the return options offered. Return via mailbox or Post offices is particularly popular. More than half of the participants prefer to return via the delivery person or self-service zones of the Post. To increase the motivation to return the packaging, opt-in solutions or a deposit system are necessary. About 85 percent of the surveyed customers would be willing to pay an average deposit of four euros for a packaging.
• Ecological sustainability: A positive ecological balance is particularly evident with packaging made from wood fibers. Packaging made from recycled PET is designed for up to 100 shipping cycles but is also significantly more complex to produce. Since they are also lost in practice before the end of their durability, their ecological balance worsens as a result.

The test of the reusable wine packaging for INTERSPAR weinwelt will be extended. In close coordination with the retail company and the University of Applied Sciences Upper Austria, several generations of prototypes have been developed to ensure the quality of the wines even in reusable packaging. The practical test of this self-developed packaging will therefore be extended until the end of the year.

Procurement and Cleaning of the Packaging

Based on these results, the Post has decided to offer this promising and future-oriented model as its own service starting in spring 2023.

Retail companies can then rent packaging from the Post and offer it to their customers at checkout. If the recipient chooses this packaging, the company packs the product in a reusable packaging, and the package is delivered as usual by the Post. The recipient takes out the ordered product, folds the packaging, and returns it via mailboxes, Post offices, self-service zones of the Post, or directly at a location of the retail company. The packaging is then sent to a processing facility of the Post, where it is cleaned and stored until the next call.
If retail companies want to purchase other types of reusable packaging themselves and use them in shipping, they can return them as empty packaging via the same Post infrastructure. They will then be delivered directly to the retail companies’ warehouse, where they will prepare and store the packaging themselves.

Cardboard boxes and bags made from wood fiber material, which can be used up to 30 times, will be used. These packaging have the advantage of having a significantly lower emission share during production and disposal compared to other solutions. This ensures that they can reach the break-even point from the first complete shipping cycle and thus save CO₂ emissions and raw materials with each subsequent shipment.

Retail companies can decide for themselves whether to offer the reusable packaging at the normal price, with a one-time surcharge, or with a packaging deposit. Deposit systems can be handled in the retail companies’ own ecosystem during ordering and return. The Post recommends a model of the packaging deposit that is returned to the customers as a monetary amount, voucher, or percentage off their next purchase.

Multiple Award-Winning

The relevance of the topic of reusable packaging in online retail is also demonstrated by the awards and nominations that the “Green Packaging” has already received:

• State Prize Smart Packaging 2022: Special Prize “Innovation”, additionally nominated and placed in the Top 3 in the category “B2C”
• VCÖ Mobility Prize 2022: 1st place in the category “Climate-Friendly Goods Transport & Logistics”
• Green Marketing Award: 3rd place in the category “innovate”
• HERMES Climate Protection Prize: Nomination, final on November 4, 2022

The “Green Packaging” project was co-financed by the waste prevention funding of the Austrian collection and recycling systems for packaging.

Statements from Project Participants:

Prof. (FH). DI Franz Staberhofer (left), Head of the Logistics Institute at the University of Applied Sciences Upper Austria and DI Peter Umundum, Director of Parcel & Logistics at Austrian Post AG

Ing. Helmut Luxbacher, Project Manager E-Commerce, dm: “For dm drogerie markt, participation in the ‘Green Packaging’ project was of great importance. We want to raise awareness among our customers about how they can reduce their ecological footprint as consumers, and we want to be sustainable as a business community. Through the project, we were able to gain valuable experience with reusable packaging in online retail. Whether it’s insights into customers’ willingness to keep reusable packaging in circulation with or without incentive systems, their necessary design, or the challenges and development needs in the system landscape: the project brought many important insights that dm will further explore at both national and international levels.”

Mag. Johannes Holzleitner, Managing Director, INTERSPAR Austria: “The topic of sustainability is firmly anchored in our INTERSPAR DNA. Therefore, we are constantly looking for innovative ideas to save unnecessary packaging. We have been a partner in the ‘Green Packaging’ project for about a year now and have gained some important insights: According to our current knowledge, reusable packaging for shipping wine is a worldwide novelty. Research within the project team has shown that there is no existing solution on the market that we could have relied on. The packaging was therefore completely newly developed and is tailored to our strict requirements. This ensures that the wines and spirits arrive in the best quality to our customers. The reusable packaging is currently in production and will be used for shipping starting early next year. The test can thus start promptly, and we look forward to the results.”

Mag. Günther Junkowitsch, Head of Logistics and Personnel, INTERSPORT AUSTRIA: “As one of the largest sports retailers in Austria with over two million regular customers who shop both in-store and online, we were immediately excited about the concept of reusable packaging. It is another important building block for more sustainability in logistics. The first test phase and survey showed us that customers view the topic very positively. Almost half returned the ‘Green Packaging’. There is still a lot of room for improvement, but we are convinced that solutions like this are needed in online business.”

Mag. Erik Hofstädter, Managing Director, Tchibo Austria: “The pilot ‘Green Packaging’ was a first step towards reusable shipping packaging. It is essential for consumers that the return is easy, for which Tchibo customers can also use 130 stores across Austria. From an ecological perspective, the packaging is to be optimized for ten cycles, which puts us in a realistic scenario. The biggest challenges are the technical integration of incentives as well as a financially viable return process for the empty packaging. We are continuing to work on both and are considering introducing reusable shipping packaging.”

Mag. Juliane Hofmann, Head of Infrastructure, SCM & IT, Thalia Austria: “Shop environmentally friendly! Thalia tries to enable its customers to do this on several levels: The offer ranges from eBooks, digital audiobooks, and tolino B-goods (used, refurbished eReaders) to services like Click & Collect and pick-up stations that save resources in production, packaging, and transport. With the ‘Green Packaging’, online shipments should be handled sustainably, recyclable, and environmentally friendly.”

Photo: © Austrian Post