Digital Product Passports (DPPs) are poised to revolutionise product information sharing, cost efficiency, and business opportunities in the European Union, according to new research commissioned by Amazon and conducted by Oxera.
Giving consumers more product information
Amazon's experience with our Climate Pledge Friendly programme demonstrates the power of transparent product information. In 2023, 37.6 million Amazon customers switched to certified sustainable products, highlighting consumer readiness to make environmentally conscious choices when given clear information.
The introduction of DPPs by the European Union represents the next stage in product transparency within the EU. Rather than relying solely on physical labels, DPPs will provide consumers with comprehensive digital information about a product including compliance status, detailed use, care and disposal instructions, and sustainability credentials. The impact of this digital transformation is substantial:
- Cost savings through digital innovation: For fast-moving consumer goods, 30-35% of packaging is updated annually. DPPs allow instant digital updates without costly reprinting.
- Streamlined compliance: Research shows DPPs could reduce compliance costs in consumer electronics by 15%, saving nearly €200 million per year.
- Operational efficiencies: DPPs streamline EU market operations by enabling faster product launches, improving supply chain traceability, and combatting counterfeit goods.
DPPs can improve accessibility to product information too, by opening up the possibilities to use things like automatic translation to change product information into a chosen language or text-to-speech technology.
Supporting small business growth
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Amber Bechrouri, Director EU Public Policy, speaking about the importance of simplification, innovation and digitisation at the 2025 Retail Innovation Summit.
For the EU's 127,000+ Amazon-supported small and medium enterprises (SMEs), DPPs offer particular advantages in accessing the EU Single Market. Over 9 in 10 of surveyed European SMEs believe harmonised labelling, which DPPs would offer, could help their companies grow. By reducing the need for multiple language versions and simplifying compliance procedures, DPPs can lower barriers to cross-border trade. This harmonisation aligns with global trends, as digital labelling adoption is expected to reach nearly 80% of the global economy following EU implementation.
This will create better opportunities for SMEs to more easily sell to customers in other countries with more standardised product information requirements.
The path forward
Amazon endorses the EU's DPP initiative as a catalyst for both sustainability and economic growth. While initial implementation requires investment, the long-term benefits promise a more innovative, competitive, and sustainable European retail landscape, fully leveraging the EU Single Market's potential.
