The United States saw five new data privacy laws<\/a> in 2023 alone, while global data protection authorities like France\u2019s National Commission on Informatics and Liberty (CNIL)<\/a> ramped up compliance enforcement.<\/p>\n Data privacy is particularly important for ecommerce businesses. Global online retail sales are projected to grow 39% by 2027<\/a>, increasing regulatory scrutiny of how companies protect their customers\u2019 data.<\/p>\n The good news is that ecommerce data privacy compliance brings peace of mind, increases long-term customer engagement and unlocks revenue growth<\/p>\n In this article, we share how data privacy is shaping ecommerce and the future of data collection, and what your privacy policy<\/a> should include to stay compliant.<\/p>\n\n\n Ecommerce compliance covers the various legal and regulatory requirements that online businesses must follow. This spans from consumer data protection to consumer rights and financial transactions.<\/p>\n These requirements protect consumers and ensure ecommerce companies do business ethically, securely, and in line with local and international laws.<\/p>\n This can include adhering to data privacy standards, such as the GDPR in the European Union<\/a>, ensuring secure payment processing, and displaying contact information and return policies clearly on the website.<\/p>\n Ecommerce compliance is crucial to build customer trust, avoid legal penalties and grow a reputable brand.<\/p>\n\n\n Rampant cybercrime has increased consumer concerns about the security and privacy of their activities and data online, especially when shopping. As such, they expect businesses to ensure the security of their websites, apps and ecommerce operations.<\/p>\n A 2022 PwC report<\/a> reveals some key insights:<\/p>\n This shows that consumers are increasingly sensitive to the security, data collection and privacy measures taken by online businesses. This focus and pressure should be met with tangible action, which can then be communicated to site visitors to earn their trust.<\/p>\n The ecommerce industry is seeing a major shift in the type and source of individual data that companies rely on, from third-party data to first-party or zero-party data.<\/p>\n Third-party data is gathered indirectly, from advertisers, aggregators and other sources. Third-party data often includes demographic information, buying signals and behavioral data from tracking tools.<\/p>\n Here are some of the key drawbacks of third-party data:<\/p>\n As a result, the industry is shifting toward first-party or zero-party data. Zero-party data, for example, comes directly from customers who are intentionally sharing their personal information and relates to their expressed interests and preferences. This meets the requirements for valid consent under privacy laws like the GDPR.<\/p>\n First-party data<\/a>, on the other hand, is collected by companies based on customer and visitor web activities on company channels \u2014 using browser cookies and other tracking technologies.<\/p>\n These activities include ecommerce browsing, shopping and any other forms of site or app interaction. The resulting data can include IP addresses, navigation patterns, shopping preferences, time spent on page or on-site, and much more.<\/p>\n To check which cookies and tracking technologies are collecting data, scan your website with our Data Privacy Audit<\/a> tool.<\/em><\/p>\n\n Scan your website with our free data privacy audit tool and find out in seconds what cookies and third-party services access user data on your website.<\/p>\n <\/div>\n <\/div>\n What is ecommerce compliance?<\/h2>\n\n\n
5 ways data privacy is shaping ecommerce<\/h2>\n\n\n
1. Increased focus and pressures for ecommerce privacy and security<\/h3>\n
![\"Privacy](\"https:\/\/usercentrics-poc.psapp.devwp-content\/uploads\/sites\/7\/2023\/04\/uc_blog_illustration_700x350_pmp_privacy_security_blue_01.svg\")
<\/a><\/p>\n![\"PMP](\"https:\/\/usercentrics-poc.psapp.devwp-content\/uploads\/sites\/7\/2023\/04\/uc_blog_illustration_700x350_pmp_stats_orange_01.svg\")
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2. Shift towards first-party data and away from third-party data<\/h3>\n
![\"Shift](\"https:\/\/usercentrics-poc.psapp.devwp-content\/uploads\/sites\/7\/2023\/04\/uc_blog_illustration_700x350_pmp_shift_blue_01.svg\")
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