- Required by Law: It protects your business from unnecessary risks and lawsuits. Some countries even passed privacy bills to protect personal information used in eCommerce stores. like GDPR, CCPA, PIPL, PIPEDA, etc.
- Required by third-party services: Google Analytics, Google AdSense, Facebook, Twitter, YouTube, Chatbots, etc all collect information from customers. You should let customers know which services you use and how they collect personal information.
Let’s get started.
79% of Americans feel concerned about how their data is being used by companies.
- Type of Personal Information You Collect
- How Do You Use Personal Information
- How and Why Do You Share Personal Information
- How Do You Protect Personal Information
- Add Usage of Opt-Out Policy and Privacy Rights
- How Do You Handle Children’s Personal Information
- Add Contact Information
1. Type of Personal Information You Collect
The best practice is to organize this information into categories for better clarification, such as:
- Information they provide you
- Information collected automatically through our website
- Information gathered through cookies, pixels, and similar technologies
- Information obtained from external sources.
Keep in mind that most privacy laws require that you only collect data that is needed to run your business.
2. How Do You Use Personal Information
After identifying what type of information you will collect, next you need to let customers know how you are going to use that personal information. For example, eCommerce stores usually use this kind of information for shipping, showing ads, retargeting, processing payments, etc.
3. How and Why Do You Share Personal Information
As we said earlier, eCommerce stores have integrations with many third parties. They need to share the data they collect for many purposes. For example, they share home addresses with their shipping partners, credit card details with their payment partners, demographic information with a marketing agency, etc.
Cookies are small text files created by browsers and stored on users’ devices when visiting a website. They are often used to store personal information, observe browsing habits, and provide a personalized experience for customers. You may see them when you visit a website as a pop-up or a banner.
Here’s eBay’s policy about using cookies and similar technologies.
5. How Do You Protect Personal Information
If you don’t want to bring down any penalties for negligence, you must implement reasonable security measures to protect personal information from falling into the wrong hands.
You can accomplish this by:
- Restricting access only to authorized personnel,
- Employing organizational and technical measures to protect personal information like firewalls, encryption software, two-factor authentication, etc.
Here’s Walmart’s approach to protecting users’ personal information.
6. Add Usage of Opt-Out Policy and Privacy Rights
Addressing this clause is not only a good business practice to adopt but is mandatory under most privacy laws such as the GDPR and CCPA.
Adidas’s policy of privacy rights.
Related link: eCommerce Glossary: 80+ Terms You Should Know in 2022.
7. How Do You Handle Children’s Personal Information
The best practice is to include this clause so that even if you accidentally acquire their information, you aren’t at any risk.
8. Add Contact Information
Related link: 7 Proven eCommerce SEO Tips to Get More Traffic.
- Make a list of Everything You Need to Include
- Write Your Policy
- Publish Your Policy
Step1: Make a list of Everything You Need to Include
- What type of information you will collect
- How you will use that information
- How you will share that information
- Handling the cookies and similar technologies
- Protecting the customer information
- Figuring out opt-out and privacy rights
- Handling children’s personal information
- Adding contact information.
Besides these general factors, you may want to include,
- How you’ll treat reviews posted by users
- Whether there is a minimum age for users to view the site
- Whether you store sensitive payment information, and if yes, where and how.
You are almost ready.
Step 2: Write Your Policy
- Make it easy to read: Just because this is related to laws and regulations, that doesn’t mean you need to use meaty words. Also, it shouldn’t read like blog posts either. Write in simple words so that anyone can understand.
- Don’t forget to add contact information: Give users phone numbers, email addresses, and physical addresses where they can get in touch for clarification or redressal.
- Include a date: Include the date when the policy was last updated.
Step 3: Publish Your Policy
Account Registration/ Sign-up Page
The Footer of the Website
Can I use someone else’s disclaimer?
Yes, you can. However, other sites’ disclaimers will not be specific to your activities. This can expose your site to legal liabilities if your copy-and-pasted disclaimer doesn’t include the correct information.
We are at the end of our blog and hope you have become a master in writing privacy policies for your eCommerce store.
Do you have further queries on how to write privacy policies for eCommerce websites? Do use the comment section below!