Abstract

Sustainability has become paramount in society and retail. Therefore, this study aims to compare the environmental sustainability of brick‐and‐mortar retail and e‐commerce. A literature review identifies various factors, such as buildings, shopping trips, order bundling, returns, packaging, transport and logistics, and environmentally conscious behavior, that determine the channel that is superior in terms of environmental sustainability. While these factors are context‐specific and depend on several actors (e.g., consumers, retailers, and logistics service providers), most studies consider e‐commerce to be more environmentally friendly than purchases from brick‐and‐mortar stores. However, this review demonstrates that most previous studies have focused on objective criteria (e.g., CO2). Therefore, to reflect the importance of consumers' perspectives on channel choice, we conducted four empirical studies that provide insights into the perceived environmental sustainability of each channel. In contrast to experts' views, consumers perceive e‐commerce as less sustainable than brick‐and‐mortar retailing. Hence, online retailers should improve their communication strategies and highlight the potential environmental advantages of e‐commerce and omni‐channel retailing. Brick‐and‐mortar retailers are advised to reduce the environmental damage they cause and encourage their customers to act in an eco‐friendly manner.