ecommerce privacy policy

Digital freedom stops where that of users begins… Nowadays, digital evolution must no longer be offered to a customer in the trade-off between privacy and security. Privacy is not for sale, it’s a valuable asset to protect.”

― Stephane Nappo

eCommerce businesses are actively looking to develop data privacy regulations and worldwide transitions. Cyber crimes are rising rapidly. So, eCommerce businesses need to be aware of the data threats. Compromising data privacy can lead to mistrust in the customers.

“81% of users say the potential risks they face from companies collecting data outweigh the benefits.”

Pew Research Center

eCommerce data privacy is evolving in terms of risks and awareness. Customers always expect businesses to keep their data safe and secure. If you want to excel in your business, then you need to maintain data privacy.

As eCommerce businesses expand, fraudulent activities have also become more prevalent. Therefore, it is crucial for organizations to emphasize fraud prevention. Also, safeguard the privacy and security of customer information.

You need to be updated with the data protection laws and regulations for it. The eCommerce data privacy landscape is changing. As 2022 has gone, you need to prepare meaningful strategies that you are going to implement for customer data privacy. Final and foremost, you need to ensure the privacy of eCommerce site visitors and customers!!

So, let us dive into it!

Why Is eCommerce Data Privacy Required?

It is expected that eCommerce data privacy is going to reshape the future of eCommerce. Before we go ahead, we need to understand the reasons why data privacy is required for eCommerce stores.

ecommerce data privacy

Source: Freepik

Build Trust and loyalty Among Customers

eCommerce data privacy is one of the most important aspects of the business. Maintaining data privacy ensures customer trust and builds customer loyalty. It will help you develop long-term relationships with your customers. All in all, it paves the path for the customers to connect with you.

84% of consumers are more loyal to companies that have strong security controls.


customer loyalty

Keeping customers’ sensitive data and private information safe is above all. Customers always prefer those businesses that remain transparent and honest. This is where eCommerce data privacy plays a major role.

Use the customer’s data for meaningful purposes only. You can partner with payment processing companies. In this manner, you can be away from unwanted risks and take your eCommerce business to the next level!

Keeps Your Data Safe

eCommerce data privacy belongs to the branch of data security where the customer’s data is handled. Data privacy mainly emphasizes the way in which an entity protects data while sharing it with third parties.

Sometimes the customer’s personal data is misused. Such as entities sell personal data to advertisers without using user content. In order to resolve these issues, data privacy is required.

Third-Party Needs

Nowadays, eCommerce businesses use third-party services. These third parties usually have their own requirements for eCommerce store privacy policies. They want eCommerce businesses to disclose the manner in which they handle private data.

For instance, Google requires a clear and comprehensive privacy policy on online stores. If you want to establish your eCommerce store in the marketplace, then you will definitely need to maintain the data privacy of customers. Also, Apple requires companies they work with to disclose their privacy policy.

Apple privacy policy

If you are using any Analytics Software, then it becomes necessary that you maintain data privacy. Also, eCommerce privacy policy laws are becoming stricter than before.

Data Breach

A data breach is commonly termed Information Leakage, Data Spill, and Data Leak.

24% of Americans say their personal data is “very vulnerable” to compromise. Only 2% of Americans don’t believe their data is vulnerable to compromise.


A data breach can harm user policy if their personal information is leaked. These breaches are most commonly caused by attackers, criminal hackers, careless processing, etc.

Today many laws are being implemented to prevent data breaches such as Accountability, Health Insurance Portability, etc.

Marketing and SEO Purposes

Search engines give priority to those eCommerce businesses that maintain good data privacy policies. So, if you are looking to rank higher on SERPs you need to have an eCommerce privacy policy.

search engine optimization

Also, Ad Sellers require eCommerce businesses to have a privacy policy before running Ads on their websites.

Reflects Your Image

In the emerging technology era, people’s expectations are changing. It is predicted that eCommerce data privacy will be in huge demand in the upcoming years.

Customers and companies are looking for eCommerce businesses that are taking care of cybersecurity.

So, strictly saying eCommerce privacy policy reflects your image.

Makes Your Customers Comfortable

Customers feel more connected to those businesses that respect their issues. They need to know what changes you are making in your eCommerce business.

In order to gain customers’ trust and loyalty. You can tell them why you require particular information from them. Customers usually need to know how you use their data for your eCommerce business.

When, you collect information from your customers such as their names, email addresses, contact numbers, birth dates, etc. In order to recognize them. Then, you become solely responsible for keeping their data private and confidential.

So, you need to be more protective of the eCommerce data privacy of your customers. When you keep their personal data safe, they feel secure and more comfortable.

Data Privacy Laws and GDPR

Attackers can attack both eCommerce businesses and individual users. Even when the eCommerce business expands, the attack surface expands.

General Data Protection Regulation (GDPR)

GDPR is basically an information policy and data protection law in the European Economic Area and European Union.

42%: The percentage of security leaders who say security is the biggest challenge to GDPR compliance

In the study of 3,200 professionals, 39% pointed to internal training as their biggest challenge. And 35% said it was hard for them to remain on top of constantly evolving requirements of GDPR.

You will have to comply with GDPR if EU citizens buy products and services from your eCommerce store.

GDPR Data Controller collects personal data for its own purposes. Whereas the GDPR Data Processor collects data on behalf of another organization.

Also, noncompliance with GDPR can lead to heavy fines of up to 4% of the total annual turnover.

Make Your Website GDPR Compliant on Your WooCommerce Store!

Get an overview of the GDPR, the reason for making your website GDPR Compliant, the requirements to comply with GDPR, and much more!

California Privacy Laws

CCPA mainly emphasizes the large businesses that possess revenue of $25 million or more. It applies to every online store or eCommerce store that collects personal information about Californians.

It gives the customers the right to know about:

  • The personal data that is being collected from them, how it is being utilized and shared.
  • Sharing their personal information.
  • Delete personal data collected from them.
  • Non-discrimination for exercising CCPA rights.

What is Going to Trend in eCommerce Data Privacy in 2023?

Multiple Methods to Manage eCommerce Data Privacy

eCommerce businesses will need more methods for the automation of their compliance tasks. They will need to emphasize more on data security, data minimization, vendor management, etc. They will need skilled professionals to handle compliance.

Then, they will find themselves in a better place to protect their customers’ data in DSARs, quickly connect with customers, and much more!

data security

People Will Give High Priority to Their Personal Data Protection

Since data breaches are increasing day by day, people have become more aware of the protection of their personal data. Now, customers are giving priority to the eCommerce privacy policy and prefer to connect with businesses that follow the best privacy policy practices.

People have become more curious about how their data is being utilized by businesses. They believe in more transparency and clarity when it comes to their personal data.

Building of Data Privacy Programs by SMBs

Today, there are a number of data privacy regulators which are followed by small as well as medium-sized businesses.

Many eCommerce businesses are looking forward to data privacy regulations. In fact, GDPR regulators are being trended. CCPA/CPRA laws are being implemented.

SMBs are highly investing in eCommerce privacy policy because they are looking for a bright future in the upcoming years to establish themselves.

Artificial Intelligence and Machine Learning Will Influence Data Privacy

To recognize and pause cyber threats, AI-powered privacy technologies will be utilized. In order to identify the threat patterns and stop data breaches eCommerce businesses will utilize Machine Learning.

It is expected that automation will advance in the eCommerce privacy policy to smoothen its flow. It will speed up the process of identifying and resolving security issues.

Enforcement in GDPR

It is expected that stronger GDPR enforcement will come in 2023. Data privacy regulations will be entering into these enforcements.

California possesses its own enforcement agency- California Privacy Protection Agency (CPPA) whose aim is to enforce data privacy regulations in California. It is strongly believed that businesses will be adopting data privacy enforcement.

Get the Ways to Handle Bad Data at Your eCommerce Store!

Know how you can maintain high-quality data, fix bad data, and much more!

How Can You Ensure That Customers’ Data Is Safe And Secure?

Partner With Payment Processing Platforms

eCommerce businesses can partner with secure payment processing platforms such as Square, WePay, Stripe, etc. In this manner, they can provide authentication to these third parties for data protection. In case, if your data is attacked, then your customers will not be impacted by it.

As, it is not possible for eCommerce businesses to operate without a payment processor, as they can’t accept payments at a POS system.

Offer Buy Now Pay Later Payment at Your WooCommerce Store!

Learn to implement it at your store, enable it, and get the benefits of it!

Give Attention to Cookies

If you want to comply with regulations governing cookies with the General Data Protection Regulation (GDPR), then you can store the consent that you have received from your customers. Make sure to receive users’ consent before using cookies (exceptions are allowed in case of necessary cookies).

Always provide clear information to customers about the data each cookie tracks and its main in plain language before receiving the consent. Then, you should document and store the consent.

Your eCommerce privacy policy should Inform customers that you are indirectly collecting their data using third-party technologies or cookies.

Checkout the Privacy Policy Laws

Firstly, be clear about your eCommerce store privacy program. Understand the updated privacy policies and laws. Identify which laws you can implement in your eCommerce store.

You can discover the data sets that your eCommerce store possesses. Then, you can identify which are important for your business and may be subject to compliance regulations.

Inventory Your eCommerce Data

To ensure customer data privacy, you need to understand the data that you have, how it is being handled, and where you are storing it. Prepare your eCommerce privacy policy in such a manner that it clearly defines the protections that need to be followed at various privacy levels. You can also, include the processes that are needed for auditing protections.

Minimize Your Data Collection

Make sure to collect meaningful and useful data under your eCommerce privacy policy. It can be hectic for you to manage data storage if you collect huge data. Use your customer’s data for intended purposes.

You can work on Verify Not Store frameworks. They eliminate the requirement to transfer user data to your systems. They verify users based on third-party data.


eCommerce data privacy is becoming more significant data by the day. A new phase is coming where customers are becoming more aware of their personal information usage by businesses. On the other hand, businesses are moving towards eCommerce privacy policy programs.

“In the next three years, the value of data will increase, making it even more valuable than it is today. The more efficiently you store your data, the more benefits your business will see.”

― Thomas Harrer

So, it is the need of the hour that you pay attention to compliance and eCommerce privacy policy regulations. Work towards building your eCommerce data privacy program with an efficient approach.

Give more power to your customers! When customers feel safe and assured about their data, they are more likely to connect with you. With a personalization and privacy approach, you will be able to speed up in 2023!

About the Author: Shivangi Agnihotri

A content writer passionate of writing technical posts and expertized in converting thoughts into words. She is always keen to learn and grow.
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One Comment

  1. API Flight Booking March 13, 2023 at 11:35 am - Reply

    Amazing blog and valuable information. Thanks for putting so much effort in writing this Blog.

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