New Amazon Packaging Act — Everything you need to know as an FBA retailer

It's buzzing and whirring in the Amazon seller universe: Everyone is talking about the Packaging Act, which should now also apply to all FBA retailers from June 1.

In this article, we will explain exactly what is required and what exactly needs to be done!

What is the Packaging Act and what purpose does it serve?

The Packaging Act (VerpackG) has been in place since January 1, 2019.

It has long been no secret that we are producing more and more waste, not least as a result of the gigantic online trade boom of recent years.

By reporting on shipped packaging and waste generated, retailers and sellers should now also bear part of the disposal costs themselves. In addition, the Packaging Act is intended to draw companies' attention to more sustainable packaging and recycling.

Who does the Packaging Act apply to?

The Packaging Act applies to all retailers who import goods and also sell goods to private individuals.

As an importer, you must report the packaging of the imported goods and also the packaging of the goods shipped. So if you are a private label retailer, you have to two messages surrender.

If you are supplied by a German manufacturer, you only have to report the additional packaging that is required when you deliver to the end customer, as your producer will already report the delivery to you.

We'll explain this to you more clearly in our case example:

You are a retailer of dietary supplements and purchase the goods from your producer in Germany. Your producer will deliver you 1 pallet with 40 boxes in each of these 40 boxes containing 10 plastic containers containing your dietary supplement. To secure it, the pallet was once completely wrapped with stretch film. You now receive an order in the online shop, you pack a box in a larger outer box and insert newspaper into it to fill and padding.

So what do you have to report now?

Your producer already reports all materials that are delivered to you, including the plastic containers. So now you have to report the outer box and the filling material.

What all counts as packaging?

In general, everything is considered reportable packaging that ends up in the trash of the end customer after delivery and consumption. Sales packaging, outer packaging and packaging components such as labels, air cushions, chips, adhesive tape, polystyrene snippets and other filling material are subject to licensing.

What is new about this Packaging Act?

In the past, Amazon has always reported shipped packaging that was sold through FBA. However, you should have already reported your own shipping yourself in the past.

As of 01.06.2022, however, Amazon is no longer responsible for the report, but each retailer himself.

Simply put, this means that Amazon must provide you with the shipping and packaging details and you will then report this independently and annually.

Exactly how Amazon provides this data has not yet been completely clear by Amazon. Since the report only has to be reported once a year, Amazon still has a small time buffer here to clearly communicate the solution.

First steps of a packaging message:

1) Request a LUCID number

You've probably already seen the orange box in Seller Central with the request to provide a LUCID number.

If you have not yet submitted a packaging report, you must first register with LUCID. After providing your business information, this happened quickly. You will then receive your LUCID number. You can then add them directly to Seller Central.

Is that the end of the matter?

No, because you still have to register as a partner with a dual system.

2) Registering with a dual system as a partner

An overview of dual systems can be found here:

• BellandVision GmbH
• Interseroh Services GmbH
• Noventiz Dual GmbH
• Reclay Holding GmbH together with Redual GmbH and VfW GmbH
• Veolia Umweltservice Dual GmbH
• Zentek GmbH & Co. KG
• PreZero Dual GmbH]
• Recycling Dual GmbH

3) The annual report

You report your quantities and the resulting packaging waste once a year to your dual system and also to LUCID. These messages must be the same and you must not give different messages about quantity, resulting packaging, etc.

You are also required to document what you have reported. In which form does not matter, the main thing is that you can prove that your report is correct and what is the basis for calculating it.

In principle, you do not have to provide this evidence when reporting. Reports are only checked occasionally — in this case, you should have your evidence at hand.

Example of green point:

We use the dual system for our own brands”The green point”. If you're not sure exactly how much this will cost you, the website has a few helpful features:

For example, you can use the license calculator to calculate the approximate costs you will incur. Simply enter your packaging details and you will immediately be given an amount.

If you are looking for new, more sustainable and perhaps cheaper packaging, you can see the prices of the individual packaging here. Glass packaging, for example, costs significantly less than paper.

If you are not sure how much packaging your shipped goods actually contain, the Calculation help On from the Green Dot.

We hope we were able to help you with our small contribution. If you need help with other areas of your Amazon business, we are happy to provide you with our expertise. Schedule a free initial consultation!