1. The Cross-Border Regulatory Landscape

The GPSR requires that all non-food consumer products sold in the EU—whether online or offline—must have an EU-based "economic operator" responsible for verifying product safety and compliance. Introduced on December 13, 2024, this law replaces older directives and increases enforcement powers to ensure compliance.

Key changes include:
• Appointment of an EU-based economic operator (manufacturer, importer, or authorized representative).
• A new consumer “right to remedy” for unsafe products.
• Enhanced reporting mechanisms for product safety violations.

2. The Impact on Supply Chains

For UK sellers, especially small businesses and marketplace traders, these regulations have disrupted supply chains in the following ways:

Compliance Bottlenecks:
Hiring an EU-based representative, updating technical documentation, and meeting stringent product testing standards.
Increased Shipping Costs:
Sellers may need to route goods via centralized EU warehouses or manage complex cross-border logistics.
Northern Ireland Protocol Complications:
Businesses selling to Northern Ireland must adhere to EU product standards, creating additional friction within domestic trade.

Many sellers have opted to halt EU exports, leading to an overall loss of access to 450+ million EU consumers.

3. Estimated Cost Increases and Key Cost Drivers

Industry estimates indicate that compliance with the GPSR could increase operational costs by 10–20% depending on product category and market size. The major cost components include:

EU Economic Operator Fees:
Appointing an authorized EU-based representative for each product.
Product Testing and Compliance Audits:
Verifying products meet EU safety standards.
Warehousing and Logistics:
Storing inventory within the EU to reduce supply chain delays.
Additional Documentation:
Managing technical files, safety information, and ongoing regulatory updates.

For small businesses with slim margins, these costs can erode profitability, making EU exports unsustainable.

4. Which Regulations Are Driving This?

The General Product Safety Regulation (GPSR) is the core regulation driving these changes. Specifically:

Clause 4:
Requirement for an EU-based economic operator to verify product compliance.
Clause 16–20:
Enhanced consumer protections, including the right to remedy.
Clause 23:
Stricter enforcement mechanisms for non-compliant products.

These clauses were introduced to address rising online sales, the growth of third-country imports, and fragmented product safety enforcement across EU member states.

5. So What? The Real Impact for UK Sellers

The introduction of the GPSR has significant implications:

Loss of Market Access:
UK businesses are pulling out of the EU market, ceding opportunities to competitors within the EU.
Increased Costs & Complexity:
Small sellers face disproportionate costs compared to larger enterprises, affecting profitability.
Northern Ireland Trade Barriers:
UK sellers may exclude Northern Ireland entirely to avoid dual compliance.

For UK small businesses, this regulatory hurdle highlights the widening gap between EU and UK trade relationships post-Brexit.

6. Now What? Recommendations for UK Sellers

At EcomXpert, we specialize in simplifying supply chains and helping small businesses adapt to complex regulations.
Here’s what UK sellers can do now:
Partner with EU-Based Economic Operators:
Work with trusted EU representatives to handle compliance obligations and reduce administrative burdens. Streamline Inventory Management:
Utilize EU warehouses or third-party logistics (3PL) providers to optimize shipping and storage costs. Assess Product Viability:
Focus on high-margin, fast-moving products that justify additional compliance costs. Invest in Regulatory Expertise:
Stay informed about evolving EU trade laws to minimize risks and identify growth opportunities.

Let’s Navigate This Together

While new regulations pose challenges, they also present an opportunity to optimize your business for the future.
At EcomXpert, we provide tailored solutions to:

• Simplify supply chains
• Reduce logistics costs
• Streamline inventory management
• Support in identifying a EU based economic operator

Let’s turn compliance challenges into competitive advantages. Get in touch to discover how EcomXpert can help you keep your business moving forward.

For more info, mail us at info@ecomxpert.co.uk