By Virginie Blot, Senior Product Marketing Manager at Akeneo

There is no shortage of media coverage on Digital Product Passports (DPP), but the focus has been almost exclusively on compliance rather than the opportunities DPPs afford. That is perhaps no surprise given the scale of the changes. The shift to DPPs by 2026, mandated by the European Union, will require distributors and retailers to collect and manage vast amounts of detailed information about their products, including their lifecycle, sustainability and carbon footprint.

Achieving this will depend first on incorporating DPP requirements into the current tech stack. A Product information management (PIM) approach hosted in the cloud connects everything – supplier onboarding, product details, real-time updates, carbon trace – making it easy to meet DPP requirements without excessive administrative work. It also makes it easier to manage deeper data across multiple channels to optimise product photos for brands, marketplaces, and distributors.

Once the technical hurdles of DPPs are addressed, the conversation can shift to the broader benefits for retailers and their customers. Here are five key areas to consider:

Enhancing the shopping experience

For consumers, the quality of product information is a critical factor in their decision-making process. High-quality images, detailed descriptions, specifications, and customer reviews all contribute to a positive online shopping experience. By ensuring that this information is accurate, consistent, and up to date across all channels, retailers can reduce inconsistencies that might otherwise lead to customer confusion and lost sales.

High-quality product information – clear images, detailed descriptions, and specifications – is useful for consumer decision-making. Retailers that ensure consistency across all platforms foster trust and reduce the chances of lost sales due to mismatched information. As DPP deadlines approach, this consistency will be more vital than ever.

Reducing returns and building trust

One of the key benefits of accurate product information is the reduction in product returns. Detailed descriptions, clear images, and reliable reviews help customers make informed purchasing decisions, lowering the likelihood of returns, which are costly in both logistics and reputation. A high return rate can damage a brand’s image and erode customer trust, especially in competitive online markets.

Retailers can reduce return rates by providing shoppers with all the necessary details to make confident purchases. This is particularly important for products with complex variations, such as electronics or clothing. By ensuring that customers know exactly what they’re buying, retailers can foster trust and long-term loyalty.

With the introduction of DPPs, the stakes are even higher. Customers increasingly expect transparency about a product’s entire lifecycle, from raw materials to end of life disposal. PIM that integrates with DPPs ensures that this information is readily available, helping to build stronger consumer trust and reduce returns even further.

Leveraging DPPs for growth

While some retailers may view DPPs as a compliance burden, they present a unique opportunity to enhance the customer experience and drive growth. By incorporating DPP data into their PIM strategy, retailers can provide customers with deeper insights into a product’s sustainability, ethical sourcing, and recycling options. This not only appeals to eco-conscious consumers but also creates ongoing engagement opportunities with customers post purchase.

For example, a DPP can provide real-time updates on a product’s lifecycle, from its production to its end-of-life options. This keeps the brand top of mind and increases the likelihood of repeat business. Additionally, retailers can explore new revenue streams, such as second-hand marketplaces or product repair services, using DPP data to offer value-added services that promote sustainability.

Moreover, by showcasing their commitment to good environmental practices through DPPs, retailers can differentiate themselves in a crowded market. This creates a competitive advantage, especially for first movers who embrace DPPs to engage with consumers in new and meaningful ways.

Enabling a circular economy

One of the primary goals of the DPP initiative is to facilitate a circular economy by making recycling, resale and reuse easier. By providing detailed product information, DPPs help consumers make informed decisions about how to extend the lifecycle of the products they purchase. This transparency reduces waste and supports sustainability efforts, which are increasingly important to today’s consumers.

PIM that seamlessly integrates with DPPs will be crucial in enabling retailers to participate in this circular economy. Managing the vast amount of data required for DPP compliance this way helps to  ensure that all necessary information is available for consumers, recyclers and regulators. This not only helps retailers meet regulatory requirements but also positions them as leaders in sustainability, enhancing their brand image and customer loyalty.

Once the DPP data is collected for a product, it can be reused seamlessly to resell the item on second-hand platforms. This opens up a valuable new channel for retailers, allowing them to easily enable product resales and strengthen customer loyalty by participating in the circular economy.

Future-proofing the business

By centralising product data and integrating with DPPs, retailers can ensure compliance with new laws and standards, reducing the risk of fines and reputational damage.

Moreover, the data collected through DPPs can provide valuable insights into a retailer’s supply chain. By analysing the environmental impact of different stages of production, retailers can identify areas for improvement, implement more sustainable practices, and ultimately reduce their carbon footprint. This not only benefits the environment but also results in cost savings and improved operational efficiency.

To stay ahead of the curve, eCommerce retailers can prioritise a clear product record strategy that seamlessly integrates with forthcoming DPP regulations. In this way, eCommerce retailers can turn compliance into a competitive advantage, driving growth, improving customer engagement, and building a more sustainable future.


Virginie Blot is Akeneo’s Digital Product Passport & PXM Evangelist. Follow her for more insights on product experience management and its foundational role in creating exceptional customer experiences.

 

Published 14/11/2024

 

 

 

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