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 which 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.
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.
Keeping customers’ sensitive data and private information safe is above all. Customers always prefer those businesses which 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.
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.
A data breach is commonly termed as 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
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 the companies are looking for eCommerce businesses that are taking care of cybersecurity.
Makes Your Customers Comfortable
Customers feel more connected to those businesses which 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 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 on the large businesses which possess revenue $25 million or more. It applies to every online store or eCommerce store which 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 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 for handling compliances.
Then, they will find themselves in a better place for protecting their customer’s data in DSARs, quickly connecting with customers, and much more!
People Will Give High Priority to Their Personal Data Protection
People have become more curious about how their data is being utilized by businesses. They are believing 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.
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 threats patterns and stop data breaches eCommerce businesses will utilize Machine Learning.
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!
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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!
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Give Attention to Cookies
If you want to comply with regulations governing cookies with General Data Protection Regulation (GDPR), then you can store 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.
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
Minimize Your Data Collection
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.
“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
Give more power to your customers! When customers feel safe and ensured 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!