Etsy Rallies Sellers To Push EU For Simpler Packaging Rules
Etsy is stepping up lobbying efforts around European packaging regulations, asking sellers to sign a petition calling on EU policymakers to simplify Extended Producer Responsibility requirements that the company says can create barriers for small businesses selling across borders.
The petition asks policymakers to harmonize EPR requirements across EU Member States and create a simplified pathway for low-volume sellers, with Etsy promising to deliver signatures directly to key decision makers as the company pushes for changes through upcoming EU regulatory reforms.
In a community announcement posted September 9, VP of Customer Operations James Ossman said Etsy has already been bringing seller experiences directly to EU policymakers and is now looking to add more weight to those lobbying efforts by getting sellers involved too.
jamesossman
If you sell to buyers across the European Union, you may have experienced the complexity of navigating packaging and Extended Producer Responsibility (EPR) requirements. For a one-person shop, they can be a barrier to selling cross-border.
EU policymakers are considering reforms that could help simplify these requirements. Upcoming reforms, including the Circular Economy Act and the Environmental Omnibus, create an opportunity to advocate for simpler, more proportionate rules for small sellers. But policymakers need to hear from the businesses most affected.
The EU's Packaging and Packaging Waste Regulation (PPWR) began applying August 12, bringing new EU-wide packaging rules while sellers continue to navigate national EPR systems.
Etsy updated its Seller Handbook September 3 to warn sellers that requirements can vary depending on where their business is established, where they sell and what products they offer. Sellers may need to register in individual EU countries, provide EPR numbers to Etsy, appoint Authorized Representatives, report packaging quantities and pay into local recycling programs.
The marketplace currently collects EPR registration information for France, Germany and Spain, with more countries expected to be added as national registers come online. Etsy also cautions that implementation is still evolving and obligations may vary significantly between countries, putting the responsibility on sellers to determine which requirements apply to their individual businesses.
The European Commission has identified the same problem, saying differing national registration and reporting requirements, including requirements to appoint separate Authorized Representatives, are a "real hurdle" for small and medium-sized businesses trying to operate across Europe.
The Commission had proposed suspending some Authorized Representative requirements as part of its Environmental Omnibus simplification package, but those EPR changes hit a roadblock in June when the Council of the EU discontinued negotiations after a "vast majority" of Member States expressed strong reservations.
The Council pointed instead to a more comprehensive review of EPR frameworks expected under the Circular Economy Act later this year. The Commission has said that review could include harmonization and digitalization of EPR requirements, reduced reporting and simplification for third-country producers.
Etsy's proposed "simplified pathway for low-volume sellers" is less clearly defined. Neither the announcement nor the petition says what would qualify as low volume or whether Etsy is seeking exemptions based on revenue, number of packages shipped, packaging weight or some other threshold.
As with many marketplace lobbying efforts, Etsy isn't approaching the issue solely as an advocate for sellers. Under PPWR, online marketplaces have obligations to collect EPR registration information and self-certifications from covered sellers, creating additional compliance work for Etsy as individual Member States bring their systems online.
And increased regulatory costs have not always stayed on Etsy's side of the ledger. Earlier this year, the company raised Regulatory Operating Fees in multiple markets, saying the charges help keep pricing aligned with the increasing cost of meeting local requirements.
Liz Morton
But Etsy and smaller sellers have some obvious common ground here. Country-by-country registrations, fees and other requirements can quickly make a handful of cross-border orders more trouble than they're worth, potentially leading sellers to stop shipping to some EU destinations while Etsy loses the fees it would have collected on those transactions too.
Will current EU packaging and EPR requirements make you reconsider selling to buyers in some European countries? Let us know in the comments below!
