Digital product passports could boost SME trade and cut costs across EU

A new study commissioned by Amazon and conducted by Oxera shows that Digital Product Passports (DPPs) could reshape product transparency and business efficiency across the European Union. The research suggests DPPs could cut costs by up to 15%, strengthen the Single Market, and particularly support small and medium-sized enterprises (SMEs).

Consumers respond to more information

Amazon's Climate Pledge Friendly programme illustrates how increased transparency influences buyer behaviour. In 2023, 37.6 million customers on Amazon switched to certified sustainable products. The findings highlight how consumers are more inclined to choose environmentally responsible options when they receive accessible, reliable information.

Digital product passports explained

The EU’s upcoming DPP system aims to move beyond static physical labels. Each product would carry a digital record detailing compliance status, usage, care, end-of-life disposal, and sustainability credentials. This approach would help update information instantly without costly reprints, crucial for industries where packaging is frequently changed.

Cost reduction through innovation

The Oxera research outlines the financial advantages of DPPs. In consumer electronics alone, compliance costs could drop by 15%, resulting in estimated annual savings of nearly €200 million. For consumer goods companies, where 30–35% of packaging is revised each year, DPPs allow faster digital updates without physical waste or delay.

Greater market access for SME

DPPs could significantly reduce cross-border trade barriers for the more than 127,000 SMEs supported by Amazon in Europe. With harmonised labelling and fewer translation and compliance hurdles, smaller firms would find it easier to reach customers in other EU countries. According to Oxera, over 90% of SMEs surveyed believe this kind of system would support their growth.

Amazon supports EU-led standardisation

Amazon has voiced its support for the DPP initiative as a driver of both sustainability and market competitiveness. Amber Bechrouri, Amazon’s Director of EU Public Policy, reiterated this at the 2025 Retail Innovation Summit, underlining how digital harmonisation can benefit both SMEs and the wider EU economy. As digital labelling standards gain momentum globally, the EU’s early move positions its market at the forefront of modern retail innovation.