Sustainable E-commerce Packaging and AI: A Guide for Retailers

Australian packaging is improving but still well short of national targets: in 2023-24, 86% of packaging was reusable, recyclable or compostable against a 100% target, and only 20% of plastic packaging was recycled or composted against a 70% target. For online retailers, the most effective sustainability steps also save money: right-sized cartons, fewer split shipments, accurate product information that reduces returns, and better stock planning. AI and automation help with each, but any green claim you make must be specific and backed by evidence.

Where Australian packaging stands

The Australian Packaging Covenant Organisation (APCO) tracks progress against the National Packaging Targets. Its 2023-24 data, released in December 2025, shows mixed results (APCO, 2025):

• 86% of packaging was reusable, recyclable or compostable (target 100%).
• 20% of plastic packaging was recycled or composted, up from 19% (target 70%).
• Average recycled content was 44% (target 50%).
• Problematic and unnecessary single-use plastics were down 46% from the 2017-18 baseline.

There is progress. Packaging use per person fell from 264kg to 251kg, and paper and paperboard, which makes up more than half of all packaging placed on the market, had a recovery rate of 66%. But APCO says that on the current trajectory Australia will continue to miss the targets without reform, and it is advocating for nationally consistent regulation and Extended Producer Responsibility settings. Brand owners are being asked to invest in credible, auditable packaging data.

For e-commerce sellers, cardboard cartons and plastic satchels are the bulk of what you ship. The targets and likely regulation point the same way: less packaging, more recyclable material, more recycled content and better records.

What shoppers will actually pay for

Shoppers say they care, but price usually wins. Australia Post's 2025 report found only 7% of shoppers prioritised sustainability over saving money in 2024, and more than two-thirds thought sustainable new goods were too expensive. Instead, many turned to second-hand: the 2026 report says 46% of Australians buy second-hand items each year, with recommerce growing on affordability and sustainability.

The practical lesson: sustainability efforts that add cost for the shopper are a hard sell, while those that remove waste and cost from your operation are easy to justify.

Avoid greenwashing

Green claims attract regulator attention. When the ACCC swept 247 business websites, 57% made concerning environmental claims, and packaging was one of the sectors where it had active investigations. The ACCC's guidance says claims must be accurate, truthful and backed by clear evidence, and that even factually correct claims can mislead through the overall impression, including visuals.

For online sellers this applies to product listings, packaging inserts and social posts. "Eco-friendly packaging" is vague; "mailer made from 80% recycled cardboard, kerbside recyclable" is specific and checkable. AI tools that write listings or posts need the same discipline: a person should check every environmental claim against evidence before it is published. See AI risks and governance for Australian retailers.

Where AI and automation reduce waste

Most packaging and freight waste in e-commerce comes from decisions made order by order. Automation makes better decisions consistently:

• Right-sized packaging. When product dimensions and weights are stored accurately, systems can suggest the smallest suitable carton or satchel, cutting material, void fill and cubic freight charges.
• Fewer split shipments. Consolidating orders from every channel in one place makes it easier to pick a multi-item order into one parcel rather than several.
• Smarter carrier choice. Choosing the right service for the parcel's size and destination avoids over-servicing, such as express freight that was not needed.
• Fewer failed deliveries. Accurate addresses and tracking reduce re-delivery attempts and lost parcels.
• Fewer returns. Every return doubles the transport and often the packaging. Clear product information, sizing and images help shoppers buy the right item the first time.
• Less dead stock. Better demand forecasting reduces excess inventory that ends up discounted or written off; see AI demand forecasting for retailers.

None of these require a sustainability budget. They lower costs, and the environmental benefit follows.

A simple plan

1. Measure: packaging types, quantities and spend per month; average parcel volume versus product volume.
2. Record accurate product dimensions and weights for every SKU.
3. Rationalise to fewer, better-fitting packaging sizes with recycled content and kerbside-recyclable materials.
4. Automate carrier and service selection by parcel size and destination.
5. Make claims specific and evidenced, and review them before publishing.
6. Track returns by reason and fix the listings driving them.

Key figures

• 86% of Australian packaging is reusable, recyclable or compostable, against a 100% target (APCO, 2025).
• 20% of plastic packaging is recycled or composted, against a 70% target (APCO, 2025).
• Packaging use per person fell from 264kg to 251kg between 2022-23 and 2023-24 (APCO, 2025).
• 57% of 247 businesses reviewed by the ACCC made concerning environmental claims (ACCC, 2023).
• Only 7% of shoppers prioritised sustainability over saving money in 2024 (Australia Post, 2025).

How eComChannels helps

eComChannels reduces freight and packaging waste as a by-product of running dispatch more efficiently. AI auto shipping works across Australia Post, StarTrack, CouriersPlease and Allied Express, prints labels and manifests, and sends tracking back to each marketplace, so parcels go on a suitable service and fewer deliveries fail or go missing. Carrier claims are handled in the same workflow.

Order management brings orders from every channel into one queue with synced stock, making it easier to consolidate multi-item orders into one parcel and avoid the oversells that lead to cancellations and wasted shipments. Fewer parcels, better-matched services and fewer returns lower your freight bill and your footprint. Book a demo or start a 30-day free trial.

FAQ

What are the National Packaging Targets?

They are Australia's benchmarks for packaging: 100% reusable, recyclable or compostable packaging, 70% of plastic packaging recycled or composted, 50% average recycled content, and phasing out problematic single-use plastics. APCO reports progress annually.

Can I call my packaging "eco-friendly"?

Avoid vague terms. The ACCC expects specific, accurate claims backed by evidence. Say exactly what the packaging is made of and how it can be disposed of.

Do Australian shoppers pay more for sustainable delivery?

Few do. Australia Post found only 7% of shoppers put sustainability ahead of saving money in 2024, so focus on changes that cut waste and cost together.