Packaging license for Etsy retailers

Why Is a Packaging License Mandatory for Etsy Sellers?

The Packaging Act (VerpackG) was introduced to increase the recycling rate of packaging materials and to protect the environment. It obligates all businesses that place packaging on the German market for the first time to register and pay a licensing fee for its disposal.

For Etsy Sellers, This Means:

• Every package shipped to a German customer must be registered and licensed.

• The regulation applies regardless of business size – even small Etsy shops are affected.

• Violations of the Packaging Act can result in hefty fines (up to €200,000) and bans from selling on Etsy.

Which Packaging Materials Must Be Licensed?

The licensing requirement covers all packaging materials that end up as waste with the final consumer. These include:

• Product packaging (e.g., boxes, cellophane bags, labels)

• Shipping packaging (e.g., cardboard boxes, padded envelopes, tape)

• Packing materials (e.g., bubble wrap, packing peanuts, paper)

Even reused packaging is subject to licensing unless it was already registered in a dual system.

Step-by-Step Guide: How to Register Your Etsy Packaging License

To enter your packaging license for Etsy and comply with legal requirements, follow these steps:

1. Register with the LUCID Packaging Register

Sign up with the Central Packaging Register Foundation (ZSVR) and register as a “producer” of packaging. After registration, you will receive a LUCID number, which you must later enter into your Etsy seller account.

2. Conclude a Licensing Agreement with a Dual System

Etsy sellers must license their packaging through a dual system. These systems handle the recycling of packaging materials. Zmart supports you in finding the right licensing solution for your Etsy shop and offers a simple way to license your packaging in compliance with the law. With a fast and uncomplicated process, Zmart ensures that you meet your legal obligations without dealing with complex procedures.

3. Report Packaging Volumes to LUCID and Zmart

After licensing your packaging through Zmart, you must report the used packaging volumes to both Zmart and the LUCID portal.

4. Enter Your LUCID Number in Your Etsy Shop

Etsy requires sellers to enter their LUCID number in their seller account. Without this number, you cannot sell products to German customers.

5. Annual Volume Reporting and License Update

Each year, you must submit a final annual report of the actual packaging volumes used. If your packaging volumes change, Zmart will help you easily adjust your license.

With Zmart, you have a reliable partner at your side who simplifies the entire process and ensures that you comply with all legal requirements without hassle.

What Happens if You Don't Comply with the Packaging Act?

If you do not register your packaging license for Etsy or fail to license your packaging, you risk serious consequences:

• Fines of up to €200,000

• Legal warnings from competitors or warning associations

• Sales bans on Etsy

• Exclusion from the German market

Since the LUCID register is publicly accessible, competitors can easily check if you're registered – and may issue legal warnings if you're not.

How Zmart Supports Etsy Sellers

Many small Etsy sellers are unsure how to register their Etsy packaging license and act in compliance with the law. That’s where Zmart comes in:

• Individual consulting: We help you find the right licensing partner.

• Step-by-step instructions: We show you exactly how to register.

• Cost-effective solutions: Save money by choosing the right licensing model.

• Legal security: Avoid legal warnings and fines through proper registration.

Act Now and Register Your Etsy Packaging License

The German Packaging Act is mandatory for all Etsy sellers who ship to Germany. To avoid fines and legal warnings, you should register with LUCID as soon as possible, conclude a contract with a dual system, and enter your Etsy packaging license.

With Zmart at your side, the process is simple and hassle-free. Let us advise you and secure your packaging license – so you can sell on Etsy with peace of mind!