The great practical guide for selling via German marketplaces: EPR obligations for marketplace retailers

Content:

• What is EPR and what does it mean for marketplace trading?
• Licensing as a marketplace retailer: The basics
• Overview: Your to-do's as a marketplace retailer
• Case studies "Ole's jewellery workshop": When am I responsible?

 

Sales on digital marketplaces are booming. This offers retailers a wide range of opportunities to market and sell their products, but in turn it also means a lot of waste in the form of shipping and product packaging.

However, the recyclable materials contained in packaging are not worthless after a single use - on the contrary, they can be reused by recycling it. This is the aim behind the German Packaging Act. Based on the principle of Extended Producer Responsibility (EPR), it places an obligation on all those who put packaging into circulation in Germany. Online retailers are therefore also affected by the obligations of the Packaging Act. In this blog article, together with our partner MarketPlace Expert, we summarise the obligations arising from the Packaging Act for you as an online retailer.

 

What is EPR and what does it mean for marketplace trading?

A frequently used term in the context of marketplace control is EPR. The abbreviation stands for Extended Producer Responsibility. It is based on the principle of product responsibility, which retailers and manufacturers must fulfil for their products. The EPR covers not only the product itself, but also packaging that is disposed of by end consumers.

In the context of the VerpackG requirements, marketplaces therefore often refer to "EPR evidence", which must be provided for registration as a seller since July 2022.

Obligation of electronic marketplaces to monitor their sellers (eBay, Etsy, Amazon, etc.)

Since 1 July 2022, electronic marketplaces have had a duty to monitor compliance with the Packaging Act. Specifically, this means that marketplaces must check whether retailers who sell their products to German end consumers have complied with the Packaging Act obligations. If you are unable to provide the relevant evidence (LUCID registration number and proof of licence from your dual system), a sales ban will apply. Marketplaces may then not allow any sales on your part.

Control obligation for fulfilment service providers

Since 1 July 2022, fulfilment service providers have also been subject to an inspection obligation. As the commissioning retailer, you must also be able to provide proof of the system participation of your packaging and registration in the LUCID packaging register if you sell goods to German end consumers. If you do not have this proof, fulfilment service providers may not perform any services for you.

Note: In addition to packaging, extended producer responsibility in Germany must also be fulfilled for electrical appliances (WEEE) and batteries. You can find more information on the requirements for batteries and WEEE here.

 

You need support with your sales on marketplaces? Our partner MarketPlace Expert is your full-service marketplace partner for all European marketplaces with strong expertise in onboarding, marketplace SEO and advertising campaigns. The SEO and Amazon specialists at MarketPlace Expert ensure growth on all relevant marketplaces. As a Lizenzero customer, you also benefit from great offers at MarketPlace Expert via our partner area.

 

Licensing as a marketplace retailer: The basics

Everything you need to know about the Packaging Act:

• The German Packaging Act (VerpackG) came into force in 2019 and was amended in 2021.
• It regulates the responsibilities of retailers and the handling of packaging waste in Germany.
• Marketplace retailers - like all other distributors of sales packaging - are obliged to contribute financially to the disposal and recycling process for the packaging they put into circulation.
• These provisions apply from the first packaging that is placed on the market in Germany and accumulates with private end customers - the Packaging Act refers to this as "sales packaging".
• Sales packaging is all service, shipping and product packaging, including filling materials and packaging aids, that is generated in private households or a comparable source of waste generation.
• Packaging is "subject to system participation" and must firstly be licensed with a dual system and secondly registered with the Central Agency Packaging Register (ZSVR) via LUCID.
• The Central Agency Packaging Register acts as the supervisory authority for the Packaging Act.
• Once a licence agreement has been concluded, the dual system takes over the organisation of the disposal and recycling process.

Checklist: Do the requirements also apply to me?

• Do you manufacture products yourself that you then sell to German end customers via a marketplace?
• Do you resell products that you purchase from other retailers/manufacturers via a marketplace?
• Do you import products from abroad and resell them within Germany via a marketplace?
• Are you not based in Germany yourself, but sell your products to end customers in Germany via a marketplace?
• Do you use fulfilment service providers?

 

If you can answer one or more of these questions with "yes", you are affected by the regulations of the Packaging Act.

 

Overview: Your to-do's as a marketplace retailer

You now know the obligations of the Packaging Act - but what does the licensing process look like? As a marketplace retailer, what exactly do you need to do to licence your packaging? We have created a step-by-step guide for you:

Step 1: Licensing (also known as system participation): Conclude a licence agreement with a dual system, e.g. directly here via Lizenzero. Enter your planned annual quantities as a basis. At Lizenzero you can use the weight calculator and the calculator to calculate your packaging quantities quickly and easily.

Enter packaging quantities now

Step 2: Registration: Register with the Central Agency Packaging Register (ZSVR) in the LUCID database. You will then receive your LUCID registration number by e-mail. Register now.
Note: Do not be confused by the term "manufacturer". Retailers who bring packaging into circulation in Germany for the first time are also considered manufacturers by law.

Step 3: The data report: In the last step, you also inform the ZSVR via LUCID of the name of your dual system and the packaging quantity reported there.

That's it! You now have the LUCID registration number (also known as the "EPR number") and you can also provide proof of your packaging licence. At Lizenzero you will find the corresponding certificate of participation accessible at any time in your customer account. This provides you with all the evidence you need to submit to marketplaces or fulfilment service providers under the VerpackG.

 

Case studies "Ole's jewellery workshop": When am I responsible?

Using the example of "Ole's jewellery workshop", we have run through various scenarios to help you understand the responsibilities even better. Here we go: Our initial situation: Ole has founded a company to sell jewellery. He has decided to sell his jewellery via various marketplaces - but which packaging does he need to license and when exactly?

Szenario #1: Ole makes his own jewellery and then sells it on Etsy

Ole is responsible for licensing the following packaging:

• Product packaging including all components: for Ole, this is a small box + label in which he places his jewellery.
• Shipping packaging including all filling materials and packing aids: for Ole, this is a cardboard box + paper filling material to protect his jewellery, as well as parcel tape to seal the box.

 

If Ole licences all packaging that he has filled himself, he has done everything right. All packaging (boxes, labels, cardboard, filling material, etc.) that he sends to his customers is licensed by him. They have therefore fulfilled their product responsibility. Ole must submit proof of system participation and the LUCID registration number to his marketplace in order to be able to continue selling here.

Szenario #2: Ole orders his jewellery from a German producer and sells it on eBay

Ole is responsible for licensing the following packaging:

• The shipping packaging he has filled, including all filling materials and packing aids: Ole has received the jewellery collected in large boxes and unpacks them first. He then sends the jewellery in different sized shipping boxes with filling material and seals them with adhesive tape.

 

Ole is not responsible for:

• The product packaging previously filled by the producer/retailer: In this case, Ole does not have to licence the boxes in which the jewellery is placed or the large boxes that it does not send on.

 

Ole has licensed all the packaging that he has added himself. The packaging that he received from the producer is not his responsibility. However, as the final distributor, Ole must be able to document during an inspection that the product packaging has already been licenced by the producer. Nevertheless, all waste products that end up in his customers' rubbish bins are now licensed. Here, too, Ole must ensure that he submits proof of licensing to his marketplace.

Szenario #3: Ole orders the jewellery from the factory in Italy and then sells it on eBay

When importing, it depends on the contract design. In the case of a purchase ex works, Ole is obliged to licence the following packaging:

• All packaging and packaging components that are imported with the goods into the German area of application: Ole must licence the boxes, the cardboard, the filling materials, the adhesive tape and all other packaging that he is sent.
• All other packaging that he fills and sends himself: Ole unpacks and repackages the jewellery to send it to his customers. He also sticks his own label on the packaging. He also uses his own shipping box, filling material and adhesive tape. Ole has to licence all of these packaging components.

 

As Ole bought the jewellery ex works and imported it to Germany, he is the one who is responsible for the goods when they cross the border. This means that he must license all packaging that comes into circulation in Germany as a result of his actions (importing jewellery). In addition, he is also responsible for all packaging that he adds himself.
If the contract states otherwise, for example "Delivered at place", the Italian retailer must assume the obligations. Ole then only has to licence the packaging that he adds himself.
In both cases, Ole must also submit the evidence to his marketplace. If the licence has been issued by his supplier, Ole must obtain the supplier's certificate.

Szenario #4: Ole ships products from abroad directly to German end consumers via Amazon

Ole, which manufactures its jewellery in Portugal, is responsible for licensing the following packaging:

• All packaging and packaging components that are imported into the German territory: Ole must licence the box, his carton, the filling material and the packaging tape.

 

As Ole ships his jewellery directly to German end consumers, he must bear responsibility for the goods when they cross the border. In order to continue making sales via the marketplace, Ole has had to provide proof of his packaging licensing and LUCID registration since 1 July 2022.

Szenario #5: Ole makes his own jewellery, but uses a fulfilment service provider for shipping

Ole has outsourced the storage and shipping of his jewellery to a fulfilment service provider because his garage has become a little too small; he is therefore obliged to license the following packaging:

• All product packaging: Ole must licence his box and the outer carton.
• All shipping packaging and associated components: Ole must also licence the box filled by its service provider, the filling material and the parcel tape.

 

The commissioning retailer/manufacturer is always responsible for licensing the shipping packaging filled by the fulfilment service provider. Ole must also provide its fulfilment service provider with proof of licensing of all product and shipping packaging, otherwise the fulfilment service provider may not provide any services for Ole.  All packaging that ends up in his customers' waste is licensed by him. This means that they have fulfilled their product responsibility.

Szenario #6: Ole uses dropshipping to sell his jewellery

Ole has decided to use dropshipping. His service provider therefore fills all packaging for Ole. He is therefore obliged to licence the following packaging:

• None. As Ole does not fill any packaging himself, he is not obliged to licence it. This must be done by his dropshipping service provider.

 

Since July 2022, Ole must nevertheless provide his marketplace with appropriate proof of packaging licensing. He must request this from his dropshipping service provider.