How Much Does a Digital Product Passport Solution Cost?

Digital Product Passports (DPPs) are rapidly becoming essential for fashion and retail companies aiming to meet evolving regulatory requirements and enhance supply chain transparency. But how much does a digital product passport solution cost? Understanding the pricing dynamics can help brands of all sizes make informed decisions and plan strategically. In this blog post, we’ll break down the key factors influencing DPP pricing, typical cost ranges, and why investing in this technology is a forward-thinking move for your business.

Factors Influencing the Cost of a Digital Product Passport Solution

Project Complexity

The more detailed and intricate the implementation, the higher the cost. Key elements that influence complexity include:

• Number of SKUs (Stock Keeping Units): Each unique product requires its own digital passport.
• Granularity Levels:
  
  • Item Level (Most Specific): Detailed information about individual items, enabling direct consumer interaction.
  • Batch Level: Information grouped by production lots – useful for managing similar items with slight variations.
  • Model Level (Most General): High-level product details, best for lower-cost, high-volume production.
• Traceability Information: The number of suppliers and the depth of traceability data needed add complexity to supply chain traceability software.
• Data Integration: Automating data collection through integrations with existing systems (e-commerce, PLM, ERP, PIM, etc.) reduces manual work but may add setup costs.

Additional Service Offerings

Beyond passport generation, providers may offer value-added services that enhance long-term value:

• Compliance Advisory & DPP Audit Program: Pre-implementation consultancy to assess infrastructure, map stakeholders, and build a clear roadmap before Digital Product Passport implementation.
• Life Cycle Assessment (LCA) Integration: Automating impact assessment reporting for full environmental transparency.
• Custom Storytelling & Branding: Creating interactive, AI-powered product stories that enhance consumer engagement and reinforce brand identity. Renoon offers unique end-to-end customization, ensuring a seamless integration for the Digital Product Passport.
• Circularity Projects Implementation: Integrating end-of-life services (resell, repair, donation, etc.) through third-party platforms or dedicated in-house programs.

SaaS Fee vs. QR-Based Pricing

Digital product passport providers typically offer two primary pricing models, which can be combined for greater flexibility:

• SaaS Fee (Platform Subscription): A recurring fee for platform access, including features like textile supply chain mapping software, compliance monitoring, and sustainability management.
• Pay-per-QR Code: Pay based on the number of QR codes generated, each linking to an immersive digital product story. Ideal for companies with varying product volumes.

Contract Type

The type of contract you choose impacts your costs and service flexibility:

• Annual Contracts: Fixed yearly fees, suitable for brands ready for long-term adoption.
• Pilot Programs: Lower-cost, short-term options for companies testing the waters or preparing for full compliance.
• Custom Agreements: Tailored solutions with bespoke features, with the option to integrate dedicated services like sustainability reporting support or compliance audits (e.g., CSRD).

Typical Cost Ranges for Different Company Sizes

Small Brands & Startups

Entry-level plans designed to get small brands started without overwhelming costs:

• Features: Basic compliance software, QR generation, limited SKU support.
• Cost Range: Under €10,000/year.

Medium-Sized Companies

Comprehensive packages providing greater supply chain visibility for scaling brands:

• Features: Expanded supplier mapping, automated compliance software, regulatory compliance automation, and dedicated support.
• Cost Range: €15,000 - €50,000/year.

Large Enterprises & Custom Solutions

Big brands with complex global supply chains may require custom-built solutions:

• Features: Full-scale textile compliance tools, deep system integration, extended traceability capabilities, and dedicated support teams.
• Cost Range: €100,000 - €500,000+.

Why Investing in a DPP Solution Pays Off

While implementing a digital product passport solution may seem like a significant investment, the long-term benefits are undeniable:

• Competitive Advantage: Stand out in a crowded market by showcasing sustainability efforts before regulations become mandatory – positioning your brand as a pioneer.
• Regulatory Compliance: Stay ahead of evolving EU sustainability reporting standards, nature restoration laws, and other regulations.
• Risk Management: Mitigate risks with comprehensive supply chain transparency and traceability.
• Consumer Trust & Engagement: Build stronger consumer relationships through transparent, immersive product experiences – while accessing valuable consumer data.

Final Thoughts

The cost of a digital product passport solution varies based on contract type, pricing model, SKU complexity, and added services. Whether you’re a small startup or a global fashion giant, investing in this technology can future-proof your business, ensure regulatory compliance, and deepen consumer engagement.

If you’re ready to explore how a digital product passport solution can fit your brand, check out Renoon’s platform. Our tools empower fashion and retail businesses to seamlessly manage their supply chain data, comply with evolving regulations, and bring their product stories to life. Get in touch with us for a tailored cost estimate that aligns with your business needs.