Copenhagen
Landemærket 10, 6th floor1119 Copenhagen
Denmark+45 33 36 44 44hello@kruso.dk
How the Digital Product Passport Will Transform the Future of E-Commerce
How will the Digital Product Passport reshape E-commerce? Learn how sustainability and transparency create opportunities for businesses to innovate and meet future customer demands.
At Kruso, we have worked on a wide range of e-commerce solutions for international businesses. With the upcoming introduction of the Digital Product Passport, we are looking at a paradigm shift in how e-commerce is conducted and experienced. As part of the EU’s Green Deal, the Digital Product Passport is not just a technical and transparency requirement—it can also be a strategic advantage for businesses that capitalize on its potential.
What Is the Digital Product Passport?
The Digital Product Passport is an EU regulation requiring all physical products on the market to have a unique digital identity. This identity will include details about the product’s materials, production, sustainability profile, and repair options. Its purpose is to promote transparency and foster a circular economy, enabling both businesses and consumers to make informed, sustainable choices.
In practice, the passport will likely be implemented via QR codes, granting access to the necessary data. While details are still being finalized, the data will encompass basic product details, materials, components, environmental impact, and circular features such as repairability, recyclability, and durability. It will also include information on supply chain traceability and social aspects of production. These data points will ensure transparency and empower both businesses and consumers to make sustainable decisions.
Does it sound complex? Consider it not just as a challenge but as a strategic opportunity for e-commerce.
Increased Digitalization and Transparency Requirements
The introduction of the Digital Product Passport will necessitate investments in digital systems such as PIM (Product Information Management) and DAM (Digital Asset Management) if they are not already in place. These systems can manage and present the influx of new product data and are essential for ensuring consistency and compliance with upcoming regulations.
How Will It Change E-Commerce?
Improved Customer Experience
The Digital Product Passport will create a more informative and personalized shopping experience. Customers can select products based on criteria like sustainability and ease of repair, enhancing satisfaction and potentially reducing return rates.
Sustainability as a Competitive Advantage
Companies showcasing sustainability through the passport will gain an edge in a market increasingly demanding sustainable products. The passport also enables marketing products with concrete data and visualizations that resonate with consumer values.
Technological Transformation
E-commerce businesses will need to upgrade their technological infrastructure to meet the new demands. This includes investments in integrations, data analytics, and visualization of product information. These upgrades will not only streamline processes but also provide deeper insights into customer behavior and preferences, enabling tailored marketing and product offerings.
Data-Driven Insights
Data from the Digital Product Passport can be strategically used to optimize production, supply chains, and marketing. For instance, companies can analyze which sustainability factors are most important to customers and adjust their product portfolio accordingly.
Ready for the Future?
The Digital Product Passport is not just a regulation—it is an opportunity to rethink e-commerce tools. Businesses that invest early in the right technologies and adapt their strategies will gain a competitive edge and be well-prepared for the full rollout of the Digital Product Passport in 2030.