All eCommerce stores collect personal data from their customers. In the past few years, there has been an increase in the number of businesses going online.
It has also resulted in increased personal information collected and shared online.
You can also get a template online. These would usually have businesses fill in the blanks regarding their details.
Step 2: Select Your Platforms
Depending on the generator, you may be redirected to a page where you must state the platform you’re using.
Step 3: Provide Your Business Information
The next section focuses on the general information about your store. Remember to include the country or state where your business is located.
It may be requested in this part of the generator or the later parts.
Step 4: Provide the Information You’ll Collect
Some generators may be more specific, recommending you state the specific information your customers will provide.
The MORE SPECIFIC you are, the BETTER.
Generators will also ask regarding analytics tools that your website might be tracking.
The generator will email your generated policy to you.
The information collected by an eCommerce site is personally identifiable information. If not protected, a business can face legal problems.
It encourages transparency and lessens their liability as a business.
If your eCommerce store caters to more than one territory or state, you must follow all its privacy laws.
It’s supposed to state that they protect ALL personal data. It is regardless of where that consumer is.
Privacy Policies can be treated as more than just your business’ legal requirements. This legal agreement can protect businesses and their customers in many ways.
What we do online results in data. There may be systems or bots in place to automatically collect personal information.
We need proper regulation to keep this information protected. Otherwise, unknown or dangerous individuals can use collected data in harmful ways.
Registered guests and website visitors are usually required to provide personally identifiable information.
There is a risk to their own personal data and businesses if websites don’t follow privacy laws.
Privacy Policies are generally considered a legal requirement for businesses. It’s because of the privacy laws in place.
They ensure that every eCommerce store can manage and protect sensitive data.
The law requires Privacy Policies as it involves data collection. Businesses must protect these personal data according to privacy laws.
The National Conference of State Legislatures (NCSL) has made a guide in the United States.
It applies to all 50 states and US territories. It helps legislators create laws, including those which protect personal information.
There are also several global privacy laws affecting our local Privacy Policies.
An example would be the General Data Protection Regulation (GDPR) used to protect the private data of European Union (EU) citizens.
Since the EU actively participates in the global market, this regulation affects everyone. It includes businesses and customers tied to the EU.
Customers also have the right to opt-out of data collection. It can limit access to the benefits of the eCommerce store. It allows users to choose which information sites can collect.
Protection for Minors
Privacy laws take into consideration the online presence of minors. The requirements for this clause may vary depending on your country or state.
However, there is a growing global concern for the activities of minors online. It’s an increasing issue, especially for websites catering to adult or sensitive products.
It helps to add a separate clause for minors. It is applicable even if your business doesn’t cater to these products.
It informs parents that the eCommerce site is not liable for a child’s actions on their site.
It helps businesses as they can’t track every user online. Not only does it promote transparency on the site’s limits, but it also lessens its liability.
Required by Third-Party Services
Third parties deal with any personal information, including credit card details. In cases of recurring payments, sites have this information collected automatically.
Privacy laws require all eCommerce stores to inform users of this arrangement. Other third parties may get involved in collecting data.
They can track customer browsing information. Sites like YouTube, AdSense, and more can track a customer’s data and behavior.
These third parties use them for marketing products and services to your customers.
This effort to inform them helps in being open with your processes as a business.
Collecting personal information needs the trust of the consumers. They should be made aware of what happens to their personal information.
Required for Remarketing Purposes
As stated, third-party services may observe how consumers behave on your site. It includes the links your customers click, the products they view and buy, and more.
These third parties use that behavior to show ads and suggested products. It’s a system to encourage customers to buy similar products or accessories.
It also provides these third parties with statistics. Then, they use these to analyze the business’ performance. They collect information to see how the business can further improve.
All data collection usually means providing personally identifiable information. Privacy laws require businesses to have policies and security measures.
You can do this by itemizing the data your site collects into a comprehensive list. Detail everything your customer needs to know to minimize liability and establish transparency.
Type of Customer Data Collected
It can include information like a person’s shipping address, contacts, and financial details. Itemizing the different information you collect is a great way to do this.
It makes the information easier to understand for different readers. It’s important to be specific and transparent, especially in this area.
A great example would be Amazon’s list. While some factors may seem vague, they supply examples.
These can help the customer understand their point.
How You Use Their Personal Information
It’s important to inform your customers about how you use their personal data. It will always be applicable, whether sending products to them or improving their user experience.
It’s also important to disclose if you share their information with other services. These are services that help your business.
However, they may also collect information for their statistics.
It’s great to practice having a structured list and explaining each point. This method helps your customers better understand how you use their data.
It’s important to state which third-party service providers are connected to your business.
The most common example would be how businesses partner with PayPal. Payment processes require payment information that businesses shouldn’t disclose to others.
They also include the business transfers section. It would state how customer information is handled. It’s an important clause if your business merges or is fully acquired by another.
Cookies and Similar Technologies
Opt-Out Options and Privacy Rights
It’s important to remind your customers about their right to privacy. It includes an opt-out of giving some information, which adheres to privacy laws.
They also promote trust between the business and customers. By having this, you’re giving your customers the freedom to choose their privacy.
However, it’s important to specify which information will be required. Sites would need some information for customers to use their services.
How You Handle and Collect Personal Information From Minors
Having this clause is important if you have visitors under the age of 13. It becomes more applicable if you collect information from them.
You also need to explicitly state that those under 18 also need parental consent to buy a product.
You’ll have less liability if you accidentally collect their information.
How You Protect Personal Information
An eCommerce store should also inform its customers of protection details. It ensures customers that there is a system in place for their personal information.
Lack of security would be an offense to Privacy Laws.
You can implement security measures to keep sensitive information protected. These can include firewalls, encryption, and more.
An eCommerce business needs to include a clause about how customers can express their concerns. This section would include the following:
- Email addresses
- Physical address
- Phone numbers
If there are other ways to reach out to the business, it needs to be included in this segment.
It also includes information about the site’s support team and a data protection officer. These are parties that people can reach out to regarding their privacy issues.
Why Is the Data Collected?
There are many reasons sites collect data, especially for an eCommerce business. These reasons mostly focus on marketing and statistics.
Here is how businesses and third parties normally use customer data.
Advertising methods, like remarketing or retargeting, use collected data. It’s when the algorithm makes suggestions based on past purchases or views.
These are also used for marketing communications. ECommerce stores do it through emails and other forms of communication.
People have the right to opt out of these marketing tactics.
However, the general information is still counted as statistics for the website’s performance. It shapes how an eCommerce store can change its strategies.
Besides marketing, an e-commerce website collects personal information whenever we make purchases. It would include the collection of payment information.
They need to ask for information like contact numbers and delivery addresses. The site requests these from all customers.
In return, customers have to agree to these to make their purchases. It applies to all customers, whether they have an account or not.
This information is also automatically data stored by the website. It’s especially true for those who have accounts on the site. The site then uses this for future purchases.
It’s also important that they agree to it before proceeding to your site.
The box they tick for this method is their consent and explicit approval of this agreement.
Websites usually put their legal documents on their customer registration page.
Doing this helps the customers easily access important documents. These usually pertain to their participation on your website.
It’s where their information is usually collected. It also makes it one of the best ways to remind customers that they are aware of your policies.
Legal documents and general information are also found on the footer or the bottom of the page. These links should be accessible anywhere on the site.
The footers provide the general information the customers need to understand your business. Having these links organized on the footer of your site is important.
These efforts make it easier for your customers to learn about your online store and how they can get in touch.
The final checkout page also requires customer data, especially financial information.
It is where they may provide their credit card details. It can also redirect them to third-party service providers to process payments.
The site uses this page to collect payment information. It’s important to remind your customers about the data you’re collecting.
It’s an important section, especially for website visitors. These users may have more limited access to your site’s benefits.
It includes immediate access to help from customer support.
Email Newsletter Sign-up Forms
Your customer’s email address is information that your business should protect. These can be easily linked to other accounts and traced back to the owner.
Frequently Asked Questions
You may have more questions about Privacy Policies and how they’re important.
We’ve gathered the commonly asked questions to help you understand more about them.
How Can I Protect My Personal Information?
There are many ways to protect your personal information online. It’s important to know them, especially as a customer.
There isn’t a 100% guarantee that personal information online will stay for your eyes.
However, these steps will limit the collection of your information without your permission.
Read the Legal Documents
It’s common for people not to take documents seriously, especially when they’re online. However, being aware of the general information is important.
It’s especially true for legal documents like Terms and Conditions or Privacy Policies.
These documents remind customers of their rights as consumers of the site. It also maintains the security and safety of all the customers and the company.
Secure Your Social Media Accounts
Using strong passwords and different authentication methods helps secure your social media. It increases your accounts’ security levels and who can access your information.
Limiting logins to unknown devices or unprotected public WiFi is also best. Connecting to them may make your information prone to data theft and hacking.
We recommend using a password manager. It’s best used if you have many different accounts and passwords. This application will help keep a record of your passwords securely.
While it may be tempting to share our lives online, posting too much about yourself can be dangerous.
Sometimes, it’s still possible for sites to track your personal information. It can happen even if your profile is set to private.
Keep track of your privacy settings. All social networking websites allow their customers to tailor their account privacy settings.
It gives the customers control over what they share with the public.
Be Careful of Dangerous Links
It’s possible to be redirected to other websites while browsing through one. Be careful with these pop-up sites, which may be dangerous.
Sometimes, they may be out of the businesses’ control.
These sites can easily track your browsing activities and information without your knowledge. It may make your accounts prone to hacking and other cybercrimes.
Stay on trusted websites and close any suspicious websites immediately.
What Is the GDPR (General Data Protection Regulation)?
The General Data Protection Regulation, or GDPR, was written to protect consumers’ data.
This added measure aims to give maximum protection to the personal information collected by websites.
Its main focus is EU citizens. However, it can also affect consumers outside the EU who buy from an eCommerce store based in the EU.
These apply to eCommerce stores based in the EU or those that affect EU citizens.
Fines for non-compliance can range from €20 million or 2-4% of the annual global turnover. Whichever is higher will be the charge towards the business.
What Is the CCPA (California Consumer Privacy Act)?
The California Consumer Privacy Act (CCPA) gives consumers information control. It means your customers have the right to opt-out of giving information.
It helps eCommerce stores write their Privacy Policies. They also give your customers the following:
- The right to know the information you collect and how you use it
- The right to delete the shared information (with some exceptions)
- The right to opt-out of a sale
- The right of non-discrimination
How Is Google Analytics Relevant to Consumer Data?
Google Analytics is one of the most well-known services online. It’s used to help businesses track their website’s performance.
Through their data collection, they can provide statistics for eCommerce stores. It can help a small or medium-sized commercial website study user behavior.
The information is then used to improve marketing, engage visitors, and increase traffic.
Most of all, it protects businesses from legal issues. It’s especially true when they properly lay out their terms.