How to Protect Customer’s Privacy Online

Many eCommerce sites collect and retain personal information about customers. Some of the personal data one is likely to obtain include customer’s name, physical and email addresses, and possibly their credit card and other types of financial information. As an eCommerce operator, it is important that you protect the data you collect from your customers. The guidelines to protecting customers privacy online include: –
  1. Data Privacy Audit: – While collecting customer data ensure that you understand which kind of data your business needs and how the data will be protected. Ensure the customer’s personal information is protected, and that when you collect such data you comply with federal and state privacy laws.
  2. Data Collection Minimization: – The best way to ensure that you’re properly protecting your customer’s data is to avoid collecting too much sensitive data. Only collect the data you need to complete a transaction and ship the products to avoid hackers and data breach.
  3. Secure Data: – In the process of collecting customer data, it is essential to protect all data you collect as data can easily be lost or stolen by hackers. Make sure databases and website are secure to keep your customer’s data out of online hackers’ hands.
  4. Privacy Policy: – E commerce site owners should provide a privacy policy and post it on the eCommerce website. A privacy policy is a legally binding agreement between you and your customers. This policy should clearly identify what kinds of personal information you will collect from users visiting your website, who you will share the information you collect with, and how you will use and store that information. Make sure the policy will properly protect you if anything malicious were to happen to customers’ data. You can decide to have a lawyer draft a privacy policy document for your business or secure a trusted service provider to manage and host your privacy policy.
  5. Communication: – Keep communication about the type of data you collect direct and upfront with your customers.
  6. Provide a Customer Forum: – Many customers today expect you to offer them settings and features that will let them choose whether to share data. Make sure you offer these features so your customers know that you’re serving them and not selling them.
As the E-Commerce site owner, it is your responsibility to ensure these personally identifiable information is protected, and that when you collect such data you comply with federal and state privacy laws.


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