EPR compliance: is Pay on Behalf right for your business?  

If you’re based in the UK or EU or selling into the UK or EU, you’ll know that Extended Producer Responsibility (EPR) compliance for e-commerce sellers is mandatory.  

And if you’re selling through Amazon and other major marketplaces, you’ll be familiar with their Pay on Behalf (POB) services. This helps you with EPR compliance, especially in countries like France and Spain, where adhering to regulations is essential for marketplaces and producers. But are they right for your business, and are there solutions that can help you with EPR compliance in the longer term? 

What is EPR? A quick recap 

Extended Producer Responsibility regulations make producers—from product manufacturers and importers to sellers—responsible for the environmental impact of their goods throughout the entire product lifecycle, from design to end-of-life disposal. Producers then must pay EPR eco-contributions. This EPR compliance guide takes a deeper dive into the regulations.  

These regulations matter because they: 

• Reduce the environmental impact of products 

• Promote sustainability in product design and packaging 

• Encourage shared responsibility for waste management 

What is a Pay on Behalf scheme? 

Marketplace EPR Pay on Behalf schemes can make EPR fees and reporting easier by typically: 

• Automatically calculating EPR fees based on your products and categories 

• Collecting the EPR eco-contributions directly from your seller account 

• Paying the collected EPR fees to the relevant Producer Responsibility Organisations (PROs) and agencies 

• Handling EPR reporting obligations for waste management categories like packaging, electronics, and batteries 

While EPR currently covers France, Spain, Germany and Austria, the POB schemes aren’t in all of those countries. 

Where are POB schemes active? 

Pay on Behalf schemes are currently active in France, Spain and the UK, but not in Germany. 

France mandates POB schemes to cover any non-compliant producers. Under their Anti-Waste Law (AGEC)), marketplaces like Amazon are considered ‘deemed producers’ for sellers without valid EPR Registration Numbers (UINs). 

Meanwhile, Spain offers POB as a solution for marketplaces to meet obligations. Here, EPR compliance aligns with Royal Decree 293/2018. This means that marketplaces must ensure all sellers are compliant or handle them on sellers’ behalf. From 2023, marketplaces would have automatically enrolled producers into their POB schemes if they lacked valid registration. 

Registration for France and Spain on a producer/seller level is mandatory. Unlike Germany, the monitoring of compliance in France and Spain from the marketplace side isn’t compulsory, meaning no deadlines and/or threat of de-listing – at least for now.  

The benefits of Pay on Behalf schemes… 

With the marketplaces calculating and making EPR contributions on their behalf, producers can enjoy simplified compliance processes at a potentially reduced cost. This allows them to focus on smooth cross-border trading rather than getting bogged down in complex regulatory requirements. 

…And the potential drawbacks

On the other hand, producers have less control over the compliance process than if they’re independently registered because they have to rely on the marketplace’s calculations to be accurate. The marketplace might also charge additional fees for managing the process. And if any compliance issues arise, it’s not always clear if the producer or marketplace is accountable. 

Why is independent EPR registration important, and how can AVASK help? 

With your own EPR number in hand, you’ll be following the EPR regulation for producer responsibility. Independent registration allows you to better track data, see your business’s environmental impact more clearly, and make more accurate financial contributions. It’s a long-term solution that allows you to grow your business into multiple marketplaces and territories, and to make better operational decisions that can save you money in the longer term. 

Having your own EPR number means it doesn’t matter which marketplace you use, and you’re not left high and dry if your chosen marketplace’s POB scheme ends.  

With AVASK, you can register for EPR and meet requirements in multiple countries with relative ease. 

Ready to grow your business into Europe? 

Expanding your business into Europe means navigating a complex regulatory environment that will change and grow in scope over time. POB schemes are also likely to come and go as the regulations in each country develop.  

EPR registration is vital for ensuring smooth cross-border trade, independent of your marketplace. As EPR regulations evolve, it helps you maintain a competitive edge and build trust with customers who value sustainability.