As the world becomes increasingly digitized, e-commerce stores are becoming more prevalent. However, with the increased use of technology, there is an increased need for privacy and security. This is why e-commerce stores need to have a clear and transparent Privacy Policy in place.
In this blog post, we’ll discuss why it’s important for your e-commerce store to have a Privacy Policy, when you should have one, and how to create a comprehensive and professional Privacy Policy that fits your needs.
Do E-commerce Websites Need a Privacy Policy?
If you’re running an e-commerce store or thinking about starting one, you should have a reliable Privacy Policy in place before you even start selling your goods or services. Privacy Policies are necessary for e-commerce websites for several reasons:
It’s required by law
The main reason why you need a Privacy Policy is that a Privacy Policy is legally required by law in the European Union (GDPR), the United States (CCPA), Canada (PIPEDA), South Africa (POPIA), Brazil (LGPD), and other privacy laws around the world.
It builds trust with customers
A Privacy Policy is also a contract between you and your website users. As an e-commerce store, you will be collecting users' personal information such as name, address, email, IP address, purchasing history and habits, credit card details, and others. Obviously, your website users will want to know how you treat this information, how long you will keep it, do you share it with third- parties, and related details.
A Privacy Policy should tell people how they can opt out of receiving marketing emails from you or how to change their preferences regarding using your services. A Privacy Policy should also include information about how to contact you regarding the collection or management of personal data. This is particularly important if you are using cookies on your website.
If customers see that you treat your privacy policy seriously, this will help your customers to build confidence in your website and business.
It gives you legal protection
A privacy policy could also protect your e-commerce website from potential lawsuits from customers or other businesses. If your business is sued, you can prove that you have in place a publicly stated privacy policy that clearly declares how you handle the sensitive personal information of users, and you do not violate the law.
It’s required by third-party services
Lastly, you need a privacy policy for your e-commerce website to use certain apps or services of third parties. To use certain services of Google like AdSense, Google Analytics, and others, you must have an up-to-date and comprehensive privacy policy in place on your website. Online e-commerce stores like Shopify also require to have a privacy policy.
In conclusion, e-commerce stores, even the smallest ones, need a Privacy Policy in place. You should think about creating it even before you have launched your e-commerce website.
What Is an E-commerce Privacy Policy?
A Privacy Policy also called a privacy statement or privacy declaration is a legal agreement that explains how a business or website collects, manages, and protects the personal information of its customers. It is typically displayed on the website of the business and is intended to inform customers of their rights and the business' obligations. Personal information often includes sensitive information, so a Privacy Policy is an important agreement between a business and its customers.
Many websites collect personal information to perform or improve online services. privacy laws around the world have been enacted to control and protect that information. Customers are also becoming increasingly aware of the processing of their personal information.
A comprehensive Privacy Policy should clearly indicate the types of data collected through your store, how it is collected, why it is collected, how long it will be stored, and if it is shared with third parties if any. Furthermore, it should give users the possibility to change, edit or delete their own personal data and the choice to opt out of sharing their data with third parties.
What Your Privacy Policy Should Include?
The particular details of your privacy policy will depend on many things like the products you sell, your customers and their age, how you collect and process payment information, and if you share this data with third parties.
Follow these guidelines to decide what sections your privacy policy should include:
What kind of information do you collect?
An effective privacy policy should include information on the types of information that is collected, how it is used, and who it is shared with. For example, it should specify whether the store collects personal information such as names, addresses, and credit card numbers. It should also explain how this information is used, such as for processing orders or sending marketing materials.
Data rights and control
Your privacy policy should also give users a chance to change, modify or delete their own personal data, as well as the choice to opt out of sharing their data with you. The privacy policy should explain the process for users to exercise these rights.
Cookie Policy
The privacy policy should also include information about cookies and other tracking technologies your website uses. Cookies are small text files that are stored on a user's device and are used to track their browsing activity. E-commerce stores often use cookies to remember items in a customer's shopping cart or to personalize the shopping experience. A privacy policy should explain what types of cookies are used and how they are used.
Personal information sharing with third parties
Additionally, it should state whether the store shares personal information with third parties, such as payment processors or marketing companies. Explain how and why you share user information. It could also include a section on how users can opt out of third-party data collection and sharing.
Age requirements
If you’re selling adult products, most privacy laws require you to specify the minimum age for users to access your website.
Even if your website is not selling adult or sensitive products, you should take certain precautions regarding the management of the personal data of minors. In many countries, including the US and the European Union, there are special requirements for the protection of the privacy of minors. For example, the GDPR permits personal data processing for persons at least 16 years of age. To lawfully collect personal data from minors younger than that age, you must receive consent from the holder of parental responsibility for the minor.
Thus, your website must have an age verification process to verify the age of users before collecting any data. If the website determines that the user's age is below 16 years, implement a separate parental consent process.
Clarify whether you intend on sharing this data with third parties.
Evaluate international data transfer
If you are transferring personal data from the EU to non-EU countries, then you should take care to use international data transfer according to the law. Ensure that the privacy policy of your data processors or third parties, based in non-EU countries, corresponds to your privacy policy and review agreements with such processors or third parties. Different countries have different laws regarding how companies can use and store user data and how they must notify users when they collect information.
Data storage and security
Another important aspect of a privacy policy for e-commerce stores is security. The policy should explain what measures are in place to protect personal information from unauthorized access, use, or disclosure. This may include the use of encryption, firewalls, and other security technologies.
In addition to explaining the security measures, your privacy policy should inform how long user data will be stored by your company. If applicable, provide details about which countries’ laws apply in case there are conflicts between them.
Provide contact information for privacy concerns
Your privacy policy must also provide contact information for persons responsible for taking care of your privacy procedures as well as their roles in the company.
If your users want to contact you regarding the management of their personal data, they should easily get the needed contacts. Provide all needed information so that users can get in touch with you if they have any concerns. Some companies create a special address for this purpose.
Keep it updated
Write the privacy policy’s effective date and keep your policy updated. Log any changes that you’ve made and provide information on when the last update took place.
Keep it simple
Lastly, according to the e-commerce privacy policy best practices, your privacy policy should be written in straightforward and simple language so that it could be easy to understand which helps your website users trust in your company. A policy that is complex and full of technical terminology could not make a good relationship and a trustworthy agreement between your customer and your business.
In conclusion, a clear and transparent privacy policy is essential for e-commerce stores. It helps to inform customers of their rights and the business's obligations, and it provides a measure of security and trust. E-commerce stores should make sure that they have a privacy policy in place and that it is easily accessible to customers.
How to Create a Privacy Policy for an E-commerce Website?
Once you’ve created that list of what to include in your privacy policy, it’s time to create one. You can choose from several options for creating your privacy policy.
Hire a lawyer
You can hire a lawyer to help you draft your privacy policy. Make sure the lawyer has experience in international data protection laws and is up-to-date with ever-changing requirements. However, this could be a costly choice.
Use a Privacy Policy Generator
There are a couple of online privacy policy generators. However, you must be sure that you have chosen a reliable one. CookieScript Consent Management Platform can help you to create a clear and comprehensive Privacy Policy using an online Privacy Policy Generator. All you need is just register, enter the information about your website or app, then answer a few questions about your business, and we’ll generate your privacy policy as text and HTML.
With CookieScript, you can create a privacy policy for any type of e-commerce store running on any CMS, like WordPress, Shopify, Wix, or others.
CookieScript is trusted by more than 150 000 websites and many global brands, including Hyundai, LG, Suzuki, ISS, DTU, and others, so you can also trust in CookieScript.
Frequently Asked Questions
What is a privacy policy for e-commerce?
A Privacy Policy also called a privacy statement or privacy declaration is a legal agreement that explains how a business or website collects, manages, and protects the personal information of its customers. Use CookieScript Privacy Policy Generator to create a comprehensive Privacy Policy.
How to create a privacy policy on my website?
You can use CookieScript Consent Management Platform to create a clear and comprehensive Privacy Policy using an online Privacy Policy Generator. All you need is to register, enter the information about your website or app, then answer a few questions about your business. That is, once you’re done with that, we will generate your privacy policy as text and HTML.
Do e-commerce websites need a Privacy Policy?
If you’re running an e-commerce store or just thinking about starting one, you must have a Privacy Policy in place for several reasons: it’s required by law, it builds trust with customers, it gives you legal protection, and it’s required by some third-party services. Use CookieScript Privacy Policy Generator to create a professional Privacy Policy.
When do I need a privacy policy on my website?
If you collect personal data from your users, like name, address, email, IP address, purchasing history and habits, credit card details, and others, you must have a privacy policy in place. You should create a reliable privacy policy before you even start selling your goods or services. Use CookieScript CMP to create one.
How to create a privacy policy for Shopify?
Shopify offers its own Privacy Policy Generator. Enter your email and company information, and it will send it to your inbox. However, you have to customize your policy. With CookieScript, you do not need to be an expert in the field, as you can provide us with all the necessary details, and we will generate a comprehensive privacy policy for your website.