The hidden risks of non-compliance with GPSR on Amazon, Etsy & eBay

If you sell consumer products on Amazon, Etsy or eBay, the General Product Safety Regulation (GPSR) affects you. Many sellers are unaware of this, and this blind spot is putting thousands of businesses at risk.

The GPSR came into effect in December 2024. It applies to all economic operators offering products to EU consumers. That includes individual sellers, brands, dropshippers and Amazon FBA users. Failing to comply can cost you your listing, your revenue, and your entire business.

GPSR is a blind spot for many online sellers. Why? Because they assume the regulation only applies to manufacturers or importers and not to sellers. But here’s the catch:

• When you sell a product under your own brand or when you have made technical modifications to a product, you are considered the manufacturer.
• When you sell a product under the original brand name, you are considered the importer
• If you are not based in the EU but sell on the EU market, you must ensure that an EU-based economic operator is established. This can mean that you, as the manufacturer, set up your own office, work with an importer who assumes legal responsibilities, or appoint an authorised representative (AR).

Here is what we commonly find:

• Many sellers believe Amazon or Etsy handles compliance on their behalf
• Many listings even lack basic technical documentation (required to demonstrate product safety and conformity).
• There is no traceability or risk assessment
• The first sign of trouble is a warning or takedown from the marketplace

Many marketplace sellers struggle with compliance. In our experience, technical documentation is often incomplete, and risk assessments are frequently missing or overlooked. 

The General Product Safety Regulation replaces the older EU directive and modernises rules for online product safety. It introduces stricter rules and clearer penalties, especially for digital sales channels like Amazon and eBay.

Here are key requirements that now apply to you if you sell to EU consumers:

1. Your products must have an EU-based economic operator. When you don’t have local presence yourself, this can be an authorised representative, importer, or fulfilment service provider. But as online market places do not want to have this responsibility, they require you to find an importer or AR in most cases. If no one is appointed, you may be blocked from selling entirely.
   
2. As the manufacturer, you are responsible for meeting all technical documentation requirements. If you are not the manufacturer, you still need to ensure the product is compliant and the manufacturer has properly prepared the necessary technical documentation. 
3. You must ensure that corrective actions, such as withdrawal or recall, are taken. Each product must have clear user instructions, labelling information, and a full risk assessment. These instructions and labelling information must be available in the official languages of each country where the product is sold.
4. You must ensure product traceability. Products must carry identifiers like batch numbers and contact details of the responsible operator.
   
5. You must monitor and report product safety issues. If you receive complaints or notice any safety problems, you are required to act and notify EU authorities within 10 days via the Safety Business Gateway.
   

Marketplaces are tightening compliance enforcement. They do not want to risk being held liable under EU law.

Recent developments include:

• Amazon is requesting upload of the CE mark on the product, the address of the EU-based economic operator, safety information and/or the declaration of conformity for certain product categories 
• Etsy is removing listings that lack EU-conformant labelling or documentation, without completing the required safety fields, you won’t be able to list or sell your product.
• eBay has introduced additional safety-related listing fields and flags risky products

Most sellers only learn about GPSR after receiving a warning or having their products removed from the website. In some cases, we have seen sellers lose access to five-figure monthly revenues due to non-compliance.

One seller using Amazon FBA had their account frozen after a marketplace audit revealed that no EU economic operator was listed. Another Etsy seller lost their shop after an audit found no CE labelling or instruction manual for a children’s product.

GPSR non-compliance does not just lead to takedowns. The consequences are much worse:

• Product removal from the marketplace
• Account suspension (temporary or permanent)
• Loss of customer trust and negative reviews
• Frozen payouts and long delays in reinstatement
• Regulatory fines or recall orders
• Products are stopped at customs and possibly destroyed
  

It can take weeks – or even months – to restore your seller privileges after a compliance violation. For many small businesses, this is a financial blow they cannot recover from.

The good news is that compliance can be managed with the right support. Here is a practical checklist to reduce your risk:

1. Make sure your products have an EU‑based economic operator (such as an authorised representative or importer). If you are an EU‑based seller offering products under your own name or brand, you are legally considered the manufacturer, even if you are not the actual producer. In this case, you take on the full responsibilities of a manufacturer under GPSR.
2. Audit your product listings. Ensure all products have correct labelling, safety info and CE or UKCA marks where applicable.
3. Verify overall compliance. Conduct regular checks to confirm your products meet all applicable EU safety requirements.
4. Use the Safety Business Gateway in specific situations. Ensure the registration of products to enable prompt notification of authorities if needed.
5. Work with compliance experts. Services like 24hour-AR help sellers avoid guesswork and get compliant fast.

The GPSR is now active, and marketplaces are not giving second chances. Many sellers only discover the rules when their business is negatively affected or even shutdown. Do not wait until your listings disappear.

Take control. Educate yourself. Get expert help. And secure your listings before the next audit.

24hour-AR offers EU authorised representation and documentation support for marketplace sellers. Read more about the GPSR here or contact us directly.