Demystifying the Economy | Online or In-Store: Which is the Right Choice?

Every Saturday, one of our journalists, along with experts, answers one of your questions on the economy, finances, markets, etc.




“More and more people are ordering things from Amazon. From an environmental and economic perspective, what is the difference between everyone going to the store to buy their product or the Amazon delivery person making a daily round to deliver the purchased products?”
– Pierre Gravelle

You are not alone in wondering about this: many studies have attempted to answer this question as faithfully as possible.

In recent years, the popularity of online shopping in Quebec has continued to grow, according to the latest NETendances report. In 2023, Quebec adults spent approximately $17.8 billion online, or $7.3 billion more than in 2018.

A research team from the Massachusetts Institute of Technology (MIT) ran hundreds of thousands of simulations in 2021 to determine which shopping option was best. In 75% of cases, online shopping was the most sustainable choice.

Roughly speaking, a “van making 100 deliveries is more environmentally friendly than 100 cars driving to the store,” the David Suzuki Foundation summarizes on its website. But the study focused on “the last mile,” the organization says, or the point at which the purchased item enters the delivery truck and makes its way to your door.

“There are many other factors. First, there is the origin of the merchandise. And second, there is the way the product is distributed,” explains Damien Silès, general director of the Conseil québécois du commerce de détail (CQCD).

The case of Amazon

As you mentioned, Quebecers are buying more and more on Amazon, revealed the latest NETendances report. In 2023, 51% of online purchases by Quebec adults were made on the platform, compared to 46% in 2022.

On a typical day, Amazon revealed on its website that a delivery person might make between 170 and 190 stops: in terms of greenhouse gas emissions, that quickly pays for itself. Unless you consider the following.

The number of delivery vehicles on the roads

According to the World Economic Forum, it will increase by 36% by 2030. This increase in the number of trucks will not only lead to greater greenhouse gas emissions, but also to congestion on roads, not all of which are designed to meet this need.

Delivery time

While Amazon prides itself on offering super-fast service, it comes at an environmental cost. “When delivery companies have to meet a one- to two-day turnaround time […]they have no choice but to mobilize trucks and planes that are not fully loaded, which increases the carbon footprint of each item delivered,” explains the David Suzuki Foundation.

Returns of goods

“If you make returns, you either bring the item back to the store or someone comes to pick it up. And that’s where it poses a problem,” summarizes Damien Silès. According to the latest Barometer from the Conseil québécois du commerce de détail, published in 2023, 81% of consumers return some of their items. “The return will cost double, because the delivery car will come back, it will leave again. It’s the worst thing to do,” adds the general director of the CQCD.

In-store pickup

Online shopping may be increasingly popular, but 32% of adult online shoppers in Quebec “always, very often or quite often pick up their online purchases directly in store, in order to avoid paying delivery fees,” according to the NETendances 2023 report.

In conclusion

Amazon is hitting the nail on the head by offering very advantageous delivery and return policies for its customers’ wallets. “That’s because [Amazon] has the financial, technical and mobile means to do this. However, the vast majority of traders do not have it. And that’s where it becomes difficult,” says Mr. Silès.

The Quebec Retail Council believes that the most sustainable option remains to travel yourself by bike or on foot to make a purchase, if possible.

All in all, Damien Silès believes that bulk delivery, as offered by Amazon, is indeed “less bad” than taking your car yourself… If there are few trucks on the roads, if you are not in a hurry to receive your purchase, if you do not make returns, and if you do not have to travel to collect your order.


source site-55