Sustainability meets savings: The long-term financial benefits of eco-friendly choices

Every disposable container, every single-use package, and every piece of unnecessary wrapping isn't just environmental waste but money literally being thrown away. Merchants who are rethinking this model are discovering a goldmine of savings and opportunities.
Deidre Olsen
October 28, 2024

When it comes to business, we're standing at a crossroads. Envision two paths stretching out before us. Each leads to vastly different futures for our planet and bottom lines.

The first path? It's one we know well. Traditional linear commerce—where we make products, customers use them, and then everything ends up in a landfill. It's the "make, take, dispose" approach we've all grown up with. At first glance, it seems profitable. After all, when products can't be repaired or recycled, customers need to buy new ones, right?

Well, that's no longer the case. In fact, this path is starting to show its cracks—not just environmentally (though the climate impact is significant) but financially, too. Think about it: limited resources mean higher costs over time. Add in growing environmental regulations and increasingly eco-conscious customers, and suddenly, that "profitable at any cost" approach doesn't look so profitable after all.

But there's another path. Enter circular commerce—a model where products are designed to be reused, repaired, and recycled. Even for businesses built around consumables, there are innovative solutions: compostable packaging, refill programs, and return schemes that turn waste into resources. Imagine coffee pods that become soil, beauty packaging that transforms into new products, or meal kit containers that come back to life as tomorrow's deliveries.

Merchants are championing more sustainable and circular commerce models

Merchants are taking the reigns when it comes to dreaming up better ways of doing business. What might have once seemed like a far-flung dream is slowly becoming a reality through the efforts of those championing more circular and sustainable commerce models.

Here are a few ways that merchants are pushing forward with sustainability in mind:

  • Subscription services that take back and refurbish products.
  • Companies designing products for easy repair and upgrade.
  • Brands turning waste materials into new revenue streams.
  • Businesses building customer loyalty through sustainability programs.
  • Consumable goods companies pioneering refill and return programs.
  • Food services creating closed-loop packaging systems.

The choice is ours to make. We can stick with the familiar path of linear commerce, watching our costs rise and our options shrink. Or we can embrace the circular economy, opening up new opportunities for innovation, customer engagement, and long-term profitability—even in industries traditionally dependent on single-use items.

As is the case in nature, it is on all of us to adapt to a changing world. That way, we won't just survive, we will thrive in a future where sustainability and profit go hand in hand.

Every single-use product is an opportunity for growth

Every disposable container, every single-use package, and every piece of unnecessary wrapping isn't just environmental waste but money literally being thrown away. Merchants who are rethinking this model are discovering a goldmine of savings and opportunities.

By cutting down on wasteful packaging or switching to reusable options, you can reduce the cost of materials, shipping, and waste disposal. Plus, you can attract more customers who care about sustainability.

It’s a win-win: less waste, lower costs, and the chance to build stronger relationships with eco-conscious consumers. That way, through refillable products and subscriptions, you can keep customers coming back for more and save money in the long run. What starts as a small shift in thinking can lead to big savings and new opportunities.

There are many ways to save money and the planet in the consumables space

Packaging

For merchants offering consumable products on a subscription basis, packaging needn't be just an expense. It can also present a significant opportunity. And the data supports this:

These are just a few great examples of how you make a difference by focusing on more sustainable packaging.

Operations

Merchants aren't only saving money and reducing waste through packaging. On top of this, they are focused on innovating across operations to cut down on costs and energy expenditure. For example:

Savings like these can compound over time as energy and disposal costs rise. With this in mind, it is clear just how much savings and how big of an environmental impact sustainable innovation can have in store for merchants.

Customer loyalty

Eco-conscious consumers are always looking to make purchases that align with their values. You can attract more business by demonstrating to existing and prospective customers that you champion sustainability in your consumable product offerings.

Every person who signs up to receive your products on a recurring basis represents a valuable opportunity to build a lasting, meaningful customer relationship. Here are some reasons why putting in the effort makes all the difference for your bottom line:

From this data, it is evident just how much sustainability plays a factor in where and how consumers spend their money. These days, people are not only willing to pay for sustainable consumable products but will remain loyal customers of merchants who think of the planet in everything they do.

The psychology of recurring purchases

When customers subscribe to consumable products, they're not just making a one-time choice but also committing to regular purchases. This makes sustainability even more powerful:

  • Each delivery becomes a reminder of their values-aligned choice.
  • Regular touchpoints create opportunities to showcase environmental impact.
  • Visible sustainability efforts (like compostable packaging) reinforce positive feelings.
  • Community building around environmental impact strengthens brand loyalty.

Each delivery is a chance to remind customers that their choices make a difference, keeping them connected to your business and its commitment to doing good.

We're at a pivotal moment in history

We are at a pivotal moment in history. The old road of linear commerce, while familiar, leads us toward increasing costs, regulatory hurdles, and a future where both our planet and profits suffer. But the circular path—though it requires innovation and reimagining—opens up a world of possibilities.

This isn't just about choosing between profit and the planet anymore. It's about recognizing that in tomorrow's economy, they're one and the same. By embracing circular commerce, we're not just reducing waste—we're creating value, cutting costs, and building subscription businesses that can truly make an impact.

The question isn't whether to make this transition, but how quickly we can adapt to this new way of thinking. That's because, in a world of finite resources, the most sustainable choice is becoming the most profitable one

We are shifting commerce for good

At Firmhouse, we are shifting commerce for good. Our recurring commerce platform helps accelerate the shift towards sustainable production and consumption habits.

We remove the technological barriers that make it difficult for brands to launch the best customer experiences, resulting in more sustainable ways of producing, delivering, and consuming products. Together, we are laying the groundwork for a tomorrow in which sustainability and growth go hand in hand.

Ready to get started with your own recurring commerce business? Book a demo today.

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