Ensuring Compliance of Online Beverage Container Sales
The rise of e-commerce platforms such as Shopify has created a significant opportunity for businesses to reach more customers with their products, which includes ready-to-drink beverages. However, with this opportunity comes the responsibility to ensure compliance with British Columbia’s Recycling Regulation. Whether your sales are direct-to-consumer, through distributors, or direct to retailers, adherence to these regulations is critical.
Key Requirements for beverage sales: in-person or online
1. Charging the Deposit and CRF
- All sales of beverages in a “ready-to-drink” container, whether in-person or online, must include the deposit refund and container recycling fee (CRF)
- The CRF covers the cost of collection and recycling, while the deposit incentivizes consumers to return empty containers for recycling
- Please ensure that your Shopify platform (or other e-commerce systems) is configured to automatically apply these fees at checkout
2. Remit Fees to Encorp
- On a monthly basis, the deposits and CRFs collected from customer sales should be remitted to Encorp
- Encorp holds the deposits until the empty beverage containers are returned to a collection location such as a depot, grocery store or Return-It Express drop off
- The CRFs are used to help fund the recycling system, including cost associated with collection, transport and recycling
3. Tracking and Reporting Sales
- In addition to remitting the deposits and CRFs on a monthly basis, sales data also needs to be reported to Encorp
- Shopify’s built-in analytics or integrated third-party reporting tools can easily help track beverage container sales accurately
- When reporting sales to Encorp, separating the sales data by channel (e.g., direct, distributor, retailer) helps to streamline the process with Encorp
Reminder that under the B.C. Recycling Regulation, when a deposit is charged it must be shown on the customer’s receipt.