How Eco-branding Influence on the Firm Performance on Small and Medium Enterprises (SMEs) in E-commerce?

The competitive pressure on business owners has also increased significantly with increasing public concern. Companies are forced to solve new tasks that require the application of strategies appropriate to the state of the environment and modern demand. Ecobranding stands out because it helps to attract the attention of consumers to strengthen the position of the business in the market. The desire of companies to eco-branding is primarily related to obtaining economic benefits and reverse judgments would be false. Based on the literature under study, it can be concluded that eco-branding plays a significant role in shaping consumer demand and influencing the competitiveness of the company. At the same time, SMEs face some difficulties. They are mainly related to a lack of resources and limited ideas about the strategic future of the company. But the tendency to choose environmentally friendly products among consumers is growing, which indicates the potential advantage of those enterprises that use eco-branding strategies. The purpose of this study is to assess the impact of eco-brands on the financial performance of medium and small businesses. The key task is to evaluate the difference in financial performance using mathematical models based on data from standard and environmental brands. Thus, the importance of this study is to determine whether representatives of small and medium-sized businesses in Russia should invest in eco-branding strategies to increase profits or eco-branding does not lead to the desired significant results and is one of the macro trends in the industry By analyzing product data on the online platforms Wildberries and Ozon, the study compared the effectiveness of eco-friendly products with those products whose positioning does not include solving environmental issues. The results showed that eco-branding increases operating and net profit by 9% and 7%, respectively. As a result, this opens up new prospects for the development of an environmentally oriented business and emphasizes the importance of environmental responsibility in the modern economic context.