A eBay and Bain & Company joint report indicates the need for brands to act quickly as new European Union regulations unlock meaningful opportunity for the next phase of value in resale, transparency and customer relationships.
As reported by WWD, luxury brands will need to meet a new European Commission regulation called the Ecodesign for Sustainable Product Regulation. The regulation aims to make transparency and traceability a regulatory requirement for luxury brands made or sold in Europe. Digital product passports will become mandatory for textiles in 2026.
In the collaborative report from eBay and Bain, the companies aim to reveal how the upcoming regulation could reshape the economics of fashion resale. According to the findings, lifetime product value will double and deliver up to 65 percent of the gains to consumers. The authors of the report said the findings “point to a transformative opportunity for brands to redefine the value chain around transparency, trust and circularity — far beyond the immediate goal of regulatory compliance.”
While nearly 90 percent of brands surveyed by Bain said they currently view DPPs as a regulatory burden, the report finds that the DPPs are also a commercial opportunity with potential for additional resale and services when supported by a DPP due to improved trust, traceability and ease. Bain encouraged companies to reframe DPPs as a “strategic investment capable of generating ongoing revenue, driving sustainability and strengthening consumer relationships.”
“DPPs are more than just checking a compliance box,” said Aaron Cheris, a partner at Bain & Company. “They are a foundational shift in how value is created, captured and sustained over a product’s lifetime. Brands that act early can build a more direct, data-rich relationship with consumers, tapping into resale trends and personalizing services in powerful new ways.”
According to the report, DPPs will unlock hidden value, specifically in the way brands will capture value when an item is resold. Additionally, brands will be able to see a product’s entire journey from resale to disposal, giving data on the lifetime value of a product and potentially its ongoing revenue opportunities.
The authors of the report said that as brands plan for DPPs, additional opportunities to create value include buyback and repurchase programs, ownership tracking and authentication, customer insight and acquisition, customer experiences, post-purchase services and circularity.
Importantly, the report highlights that consumers will be the biggest beneficiaries of DPPs. Consumers will potentially capture up to 65 percent of the new value in the secondhand market’s expansion as they engage with new and secondhand products in new ways. Resale will also become a more seamless experience and by making the secondhand market more accessible, efficient and profitable for consumers, DPPs will drive substantial growth in the secondary market.
“Digital product passports are critical to powering the future of circularity in fashion,” said Alexis Hoopes, vice president of global fashion at eBay. “As a global marketplace at the forefront of resale, we’re exploring how better product data can enable smarter buying, responsible selling and a more trusted platform. Unlocking value for consumers is a critical part of the connected product evolution.”
Beyond sustainability, brands that rethink DPPs can invent new ways to create value and monetize services. DPPs address four core needs for brands including upstream traceability, system integration, authentication and downstream traceability. While some benefits will take time to mature, the companies’ research team believes that early adopters will unlock advantages such as “enhanced customer engagement, the ability to reach new customer groups, streamlined resale processes and deeper insights.”
As the 2026 deadline approaches, Bain and eBay warn that companies that do not start acting on DPP infrastructure investment will potentially fall behind. As the deadline draws nearer, brands were advised to begin engaging consumers and testing resale models to lead the way in sustainable, data-driven fashion.
