Online marketplaces to pay for e-waste

These measures aim to create a fairer system where all sellers, including those operating through online platforms, share the responsibility for recycling end-of-life electrical goods.

The scale of the e-waste problem

The circular economy emphasizes reducing waste through the reuse, repair, and recycling of products. In the UK, it is estimated that 100,000 tonnes of small household electricals, such as cables, toasters, and kettles, are disposed of incorrectly in general waste each year. Additionally, UK households are believed to hoard around 880 million unwanted electrical items containing valuable materials like gold, silver, and platinum.

How marketplaces contribute to the problem

Online marketplaces are great for convenience shopping and they have completely transformed how consumers purchase goods, but they have also introduced challenges in regulating the environmental impacts of products sold.

Platforms like Amazon and eBay facilitate the sale of millions of electrical items, often from third-party sellers, and many of these sellers, particularly international ones, bypass local recycling regulations. This leaves local authorities and compliant businesses to bear the costs of recycling. Without robust systems to ensure accountability among sellers, the burden of domestic waste management systems is exacerbated.

Government proposal

Under the new government proposals, platforms will be required to register with the Environment Agency and report UK sales data for their overseas sellers. This data will determine their financial contributions toward the costs of collecting and treating waste electricals.

James Rigg, CEO of Trojan Electronics commented on the proposal: “We need to look at recycling electronics holistically, building a circular economy requires addressing every facet of the e-waste lifecycle, which includes the manufacturer, the retailer, and the consumer. By enforcing online retailers and international sellers to contribute towards their share of e-waste and recycling costs, we can create a level playing field in the sector, while reminding corporations to embed sustainability into their operations in their operations.

“Regulating online marketplaces through mandatory registration with the Environment Agency will provide accurate statistics of electronic trade for both national and international companies. These insights can help refine legislation to directly tackle the significant volume of electronic waste generated by British households every year.” 

By targeting online marketplaces, the government aims to address a significant loophole in existing Extended Producer Responsibility (EPR) regulations. The funds raised will help local authorities improve recycling infrastructure and recover valuable materials from discarded electronics.

The government’s strategy includes expanding consumer awareness campaigns, promoting take-back schemes, and setting more stringent recycling targets for waste processors. It also signals the government’s commitment to achieving the goals outlined in the Waste Prevention Programme for England.

Why marketplaces, not sellers, are being held accountable

The decision to target platforms instead of individual sellers stems from the logistical challenges of regulating thousands of sellers, many of whom operate internationally.

The EU’s Digital Services Act (DSA) and EPR laws reinforce the view that marketplaces are best positioned to monitor and enforce compliance among their sellers. Platforms already collect extensive data on sales and transactions, making them uniquely equipped to manage and distribute recycling responsibilities. Additionally, marketplaces profit significantly from sales, positioning them to shoulder the financial responsibility for recycling.

How Digital Product Passports can help

Digital Product Passports (DPPs) could prove to be a useful tool for addressing e-waste and supporting circular economy principles. These passports, which are set to become mandatory in the EU by 2026 for products like batteries and later expanding to textiles and electronics, include detailed information about a product’s materials, repairability, and end-of-life handling.

By integrating DPP systems, platforms like Amazon and eBay can provide consumers with clear instructions for recycling, track the lifecycle of products, and facilitate compliance with EPR regulations.

A green horizon

The implementation of DPPs aligns with the circular economy’s goals by promoting transparency and reducing waste.

For consumers, DPPs provide informed purchasing decisions, detailed material data to support repair and recycling industries, and clear instructions to ensure responsible product disposal. For platforms, DPPs streamline compliance processes, improve reputational trust, and facilitate collaboration across the supply chain.

Combining regulatory frameworks with tools such as DPPs is intended to move the UK towards a more sustainable model of production and consumption. With these measures, online marketplaces have the potential to move from contributing to the e-waste challenge to playing a key role in its solution.