Europe and Northern Ireland customers

The Impact of the General Product Safety Regulations (GPSR) on Small Businesses Selling to the EU and Northern Ireland

 

As a small business owner, the decision to expand my market reach to the European Union (EU) and Northern Ireland (NI) was driven by the opportunity to showcase my brand to a wider audience base and for 5 years this has gone extremely well with lots of returning customers trusting in The dog and bone company for their dog wear. However, recent regulatory changes, particularly the introduction of the General Product Safety Regulations (GPSR), have made it increasingly difficult, if not impossible, for small businesses like mine to continue selling in these regions.

 

Understanding the GPSR

 

The General Product Safety Regulations were put in place to ensure that products sold within the EU and Northern Ireland meet stringent safety standards. While the intention behind these regulations is commendable—protecting consumers from unsafe products—the reality is that compliance has become a formidable challenge for small businesses.

 

The Compliance Burden

 

1. Extensive Documentation: The GPSR requires businesses to maintain comprehensive documentation proving that their products meet safety standards. This includes technical files, risk assessments, and safety testing reports. For a small business with limited resources, the time and expense involved in generating and maintaining this documentation can be overwhelming.

 

2. Cost of Testing: Compliance often necessitates third-party testing and certification, which can be prohibitively expensive. Small businesses may not have the financial capacity to absorb these costs, especially when competing with larger corporations that can more easily allocate resources for compliance.

 

3. Legal Liability: The GPSR imposes significant legal responsibilities on sellers. Should a product be found non-compliant, the consequences can include hefty fines, product recalls, and damage to the brand's reputation. For a small business, the financial and reputational risks associated with non-compliance can be devastating.

 

The Economic Reality

 

Given the increasing costs associated with GPSR compliance, many small business owners, including myself, have had to reassess the viability of selling to the EU and NI.

 

- Reduced Profit Margins: The added costs of compliance can drastically reduce profit margins. For small businesses that operate on thin margins, this can make international sales unsustainable.

 

- Market Access Limitations: The complexity of navigating the regulatory landscape has created barriers to entry that were once manageable. The administrative burden often outweighs the benefits of accessing these markets.

 

- Focus on Local Markets: With the challenges posed by the GPSR, many small businesses are opting to focus on local or domestic markets where compliance requirements are less stringent. This shift, while necessary for survival, limits growth potential and opportunities for international expansion.

 

Conclusion

 

In light of the challenges presented by the General Product Safety Regulations, small businesses like mine are facing a difficult decision: continue to invest in compliance and navigate an increasingly complex regulatory environment, or withdraw from the EU and NI markets altogether.

 

The reality is that, for many of us, the latter option is becoming the only feasible choice. While we understand the importance of consumer safety, the costs associated with compliance have rendered selling to the EU and NI prohibitively expensive. As we adapt to these new realities, it’s crucial for policymakers to consider the implications of such regulations on small businesses and the broader economy.

 

Ultimately, a balance must be struck between consumer protection and the operational viability of small businesses, ensuring that we can continue to thrive and contribute to the marketplace without being stifled by excessive regulatory burdens.

 

Personal note 

To say I’m upset is an understatement. I have gained many loyal customers over the past 5 years and this decision hasn’t been made lightly but the task to implement the above is just too much, especially in the current climate.
For all my customers affected by these changes I am so sorry and I thank you so much for supporting Dog and Bone these past 5 years. You have been a big part of my growth as a business and that will not be forgotten. 

If you should ever be visiting the UK please get in touch and I will happily go above and beyond to accommodate any orders to be delivered to you whilst in the UK 

Lucy 

Founder and owner of The Dog and Bone Company