New producer responsibility rules for packaging are coming, which you need to be aware of when you pack and ship goods. We will guide you through all you need to know.
The scheme on Extended Producer Responsibility for packaging comes into effect on January 1, 2025.
Even if you’re tempted to believe that the new political agreement only concerns companies that actually produce goods, it’s also important for you, as a webshop owner, to be aware of the new rules.
The scheme applies to any form of business that packs its goods, whether it involves transport packaging, plastic boxes, cardboard boxes, bags, or similar material.
This means that every time you pack goods for your customers, you’re responsible for the cost and handling of the packaging you use.
But don’t worry - we’ve gathered everything you need to know right here.
What is Extended Producer Responsibility?
Extended Producer Responsibility is part of the EU Commission’s update of the packaging directive.
The purpose is simple and comes down to one thing.
We have to take care of the climate and nature, which means we have to minimize our use of materials and recycle more.
The principle of the scheme is that businesses are responsible for their own pollution, which encourages the creation of an efficient waste system focused on recycling and reuse.
The more recyclable or reusable the packaging is, the lower the costs will be.
The producer’s responsibility lies with the party that puts a product on the market.
Therefore, it’s not the company that physically produces the packaging that bears the responsibility, but the party that uses the packaging.
What is the cost of Extended Producer Responsibility?
It is not possible to give a concrete answer on the cost of Extended Producer Responsibility, as it depends on various factors.
In short, you pay for the costs associated with collecting and processing packaging waste. Costs cover an administrative fee, waste processing, and an environmentally graduated contribution.
However, the costs differ depending on the type of material, for example, it does not cost the same for plastic and cardboard.
Another factor that affects the price is the company’s market share within the product category. Companies with larger market shares pay a larger portion than companies with smaller shares.
Good tips for packaging
As a webshop owner, packaging is an inevitable part of your business.
That said, it might be a good idea to review your packaging solutions.
Where can you make optimizations?
As the new Extended Producer Responsibility suggests, it’s worth considering your material consumption and choice of materials.
Can you pack your orders in smaller packages? What kind of material are you using?
At the same time, it would be a good idea to ensure that your packaging consists of as few components as possible.
Packaging that is heavily taped or clipped together is often discarded rather than recycled.
Join a collective scheme
You may already be sweating over the administrative work that lies ahead.
But don’t worry.
As the date for Extended Producer Responsibility approaches, collective alternatives will be established that handle the administrative tasks on behalf of the producers.
Handling the collection and processing of packaging waste on your own can be immensely challenging. Joining a collective scheme alleviates this burden.
By participating in such a scheme, businesses can share both administrative and financial responsibilities related to recycling.
Set up packaging in Shipmondo
Once you have sorted out your packaging, you can set it up in Shipmondo.
Through Shipmondo Order Management, you can attach packaging to your shipments and thus ensure that your packages have the correct weight and dimensions.
You can link the packaging to one or more delivery methods, enabling bulk handling and automation of your work processes.
If you use digital pick paths, you can choose which packaging to use for the item once you have picked all your products.
That way, you can decide which packaging is best.
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