Privacy and security are quickly becoming top concerns in ecommerce. Its growing popularity has attracted unwanted attention from cybercriminals online. In fact, a study by Trustwave claims that the ecommerce industry is the second most targeted sector by cyberattacks in the past year.
Many malicious third-party organizations are after the myriad of data found in your system. This includes customer personal information, bank and card details, and more, leaving both your consumers and business vulnerable to fraud, scams, hacking, and identity theft. Your best protection from such attacks would be proper knowledge and precaution against the different types of threats in ecommerce.
With that, here are some ways data privacy will reshape ecommerce in the years to come.
1. Increase in privacy regulations
Different parts of the world are starting to take data privacy seriously. The European Union, for one, has introduced the General Data Privacy Regulation (GDPR). Some parts of the U.S. have also adopted their own privacy regulations like the California Consumer Privacy Act (CCPA).
As the trend of security breaches continues to rise, other countries are seeing the need to implement their laws as well. Currently, over 25 states in the U.S. are in the process of refining and executing their own consumer protection standards. In fact, 132 out of the 194 countries have already put in place legislation for the protection of data and privacy.
2. Rise of data portability
Data ownership and control often fall in the hands of businesses. However, more and more consumers are demanding that they, too, should have a say over their own data. As a result, the concept of data portability might soon become a reality in the next few years.
Through data portability, consumers can obtain and reuse their personal data for their own purposes across different services. In short, they have full control over their data. They can decide when, where, and how they will use it. Likewise, it gives them the power to delete and curate the data they give away. This shift in data ownership can change the way ecommerce businesses promote their brand, products, and services to their customers.
3. Demands for data transparency
Instances of ecommerce security breaches can strain the relationship between consumers and businesses. To gain back their trust, businesses must find a way to become more open and transparent about the data they collect and the types of ecommerce security & privacy they can provide.
The demand for data transparency is rising. Some governments are even pushing for it in their privacy regulations. Consumers want to know what type of information they are sharing, how it is used by brands, and their impact on their privacy. If done correctly, businesses will not only gain their customers’ trust but their loyalty as well.
4. Tightened security in ecommerce platforms
Technological innovations are always around the corner. There is always something new in the ecommerce industry, such as new platforms, channels, and tools. It also means that more ecommerce threats solutions will become accessible for online brands in the coming years.
Nowadays, there is a steady rise of smarter data protection solutions for ecommerce platforms out there. Privacy Software solutions like Secuvy are powered by artificial intelligence for better data governance, risk assessment, classification, security and reporting.
Aside from solutions, many brands are also innovating their processes to protect their consumers’ privacy. For one, Apple offers an option to hide their consumers’ personal email whenever they create an account in an app or website.
5. Personalization will find a way
Data collection is essential in creating a personalized experience for your consumers. However, the emerging privacy standards across the world might make it more difficult for ecommerce companies to do so.
Nonetheless, many believe that personalization is here to stay in the coming years. While most regulations make it easier for consumers to opt out of having their data collected, it doesn’t mean that companies can no longer do so. In fact, most markets will focus on improving personalization alongside data security and privacy. They can do this by leveraging the benefits of data analytics software to help better understand consumer behaviors and demands.
Securing the future of ecommerce
The threats to data security and privacy in ecommerce are not going away anytime soon. Your business needs protecting from ecommerce threats. With each new technology and innovation, there are new ways for hackers to take advantage of the loopholes in the digital space. It is high time you start prioritizing data security and privacy for both your consumers and your business.
As business owners, you must be prepared for what the future might bring. New privacy laws are emerging, demanding that you provide better protection for your consumers. While these privacy laws might pose a challenge for your business when it comes to data collection and personalization, it might prove beneficial not only to your customers but to you as well in the future.