Imagine a brand knowing every single product they manufacture that you own, even if you purchased it second hand. And knowing when you resell that product, even if sold privately through an online marketplace. That’s one of the impacts of Digital Product Passports due to be rolled out in the near future.
Set to launch in the EU in 2026, Digital Product Passports are digital records that store key product details, like materials, origin, and care, easily accessible. These passports enhance transparency and traceability across the supply chain and perhaps a big one, relatively unspoken impact will be ownership records.
Digital Product Passports will give consumers one-click access to detailed information about a product’s entire life cycle, including its origin, material inputs, environmental impact, and end-of-life disposal instructions. Lifetime value will increase, and much of this will be to the consumers’ benefit as second hand markets expand – Traceability and authenticity features embedded in Digital Product Passports could increase resale values. Buyers will gain immediate access to a product’s full history, including its provenance, which will reduce counterfeit risks and strengthen confidence in resale purchases.
If you’re wondering why eBay has been so keen to push preloved over the past few years, it’s a long term strategy playing into the future and that’s why there is a new report out from eBay, in partnership with Bain & Co.
However, all of the increased lifetime value won’t end up in value for the consumer as they realise second hand sale proceeds. Digital Product Passports will enable brands to see who owns a product, how it’s used, when it’s resold, and what services it requires along the way.
The same traceability that benefits you being able to prove a product is genuine and not counterfeit will also let the brand know that you bought it, owned it, and sold it! Brands will be able to connect with previously unknown customers in the secondary market and that’s something you might not necessarily want them to know… if you want to maintain your privacy, then don’t interact with Digital Product Passports at the time of purchase, during ownership or when you come to resell!
Today, if you buy a new vacuum cleaner direct from Dyson, you can expect regular marketing from the company as the warranty expires and when they think you’ll be in the market to replace the item. Digital Product Passports could multiple this deluge of marketing to encompass every single product you own!
But, the upsides are clear, particularly when Digital Product Passports enhance the perceived value of goods when you come to resell. And it’s not really a choice:
- By 2026, brands must manage product data within a digital registry.
- By 2027, certain industries, such as textiles, must comply with the mandate.
- By 2030, nearly every physical product sold in the EU must feature a Digital Product Passport.
The report says that if brands rethink their approach to Digital Product Passports, they can invent new ways to create value and monetise services. A strategic approach to Digital Product Passports, they say, also addresses four core needs:
- Upstream traceability: This is the primary compliance focus. Tracking the origins and journey of materials through the supply chain will encourage ethical sourcing and help consumers make informed decisions based on a product’s carbon footprint, waste generation, and recycling potential.
- System integration: Brands can integrate Digital Product Passports and their underlying platforms with other enterprise systems (e.g., product life cycle management systems) to create a unified view of sourcing, manufacturing, retail, and resale operations.
- Authentication: Verifying product authenticity and flagging counterfeits will protect brand integrity, preserve product value, and strengthen consumer trust.
- Downstream traceability: Ownership tracking will make transfers and resales smoother for consumers while providing valuable data (and stories) for brands. Digital Product Passports can also power value-added services, such as digital closets, loyalty programs, and customer relationship management activations. In addition, brands can embed resale, repair, and buyback options directly into Digital Product Passports to help consumers extend the life—and value—of their purchases.
For brands the compliance will without doubt be a huge burden, but the strategic benefits are clear to see. For consumers privacy… well that’s a choice for you and whether you choose to interact with Digital Product Passports or prefer to remain an island!
