The GDPR is a new set of government regulations set forth by the EU aimed at businesses that offer goods and services to others. Even businesses outside of the EU must comply with these rules if they are targeting EU consumers. Companies that break any of these rules are going to be penalized heavily by fines.
GDPR for eCommerce business has one primary objective – to give consumers full control over their data. Therefore, its goal is to streamline the regulatory environment so that its citizens are protected. In short, they are aiming to help preserve and strengthen the fundamental rights of consumers.
One of the most significant changes is that businesses must report any data breaches as quickly as possible so that consumers have time to protect themselves. Breeches happen sometimes and put consumers’ information at risk. So, when this happens, the EU wants consumers to be notified as quickly as possible so that they can take steps to protect themselves. It seems like a good step for businesses to take.
What Constitutes as Personal Data Under this Law?
This is where the GDRP gets a bit trickier. In addition to the visible items like name, email, and other demographics, the GDRP also considers IP address and cultural information to be personal data. It’s best to treat all data as private and secure it accordingly. These regulations are forcing businesses to develop better, more streamlined data management systems.
The GDPR applies to any business that operates anywhere within the EU, including international companies that are gathering data from EU-based consumers.
With this in mind, let’s look at some ways that GDPR for eCommerce business will positively impact your brand.
#1: Accelerate Digital Transformation Platforms
In today’s business world, nothing drives a company’s growth more than data, so these regulations are a hidden blessing. They are forcing an emphasis on data collection and transformation in businesses. You’ll need to understand how data flows through your business, document it, and then develop the proper data management plan. This ultimately fast tracks your eCommerce data transformation. You will need to leverage these changes as you become compliant.
Furthermore, you should also use this time to review all privacy notices everywhere you gather data to become compliant.
#2: It Forces you to Focus on Cyber Security
Businesses cannot afford to take cybersecurity for granted. There are huge costs to both finances and consumer trust that come with data breaches. So becoming GDPR compliant will ensure that your business establishes a conscious strategy for the security of data. Not only does it require companies to create a defined plan, but it forces them to document that strategy as well. All businesses should follow this advice regardless of where they operate.
#3: Boost ROI on Marketing
The principal goal of the GDPR is that companies must get consumers to opt into any program where the user provides data. This is valuable because it forces consumers to show interest when they sign up to receive marketing materials. One of the most significant costs in marketing comes when companies send unsolicited promotions. When a customer signs up to be on a list, they are showing a genuine interest in hearing from you. Therefore, your business will convert more of them since they are genuinely interested in what you have to offer. That leads to a significant boost in ROI.
#4: Builds Trust and Customer Loyalty
GDPR compliance will help your business establish a system of trust with customers. As a result, they will become loyal because they see you trying to protect their interests. This will be especially true with consumers who are in areas not affected by the GDPR. They will see your changes to their privacy as genuine, and it will build trust in your brand. Powerful brands have been putting these practices into their data management systems long before its regulation because it’s a great way to build loyalty.
#5: Helps Keep Customer Information Up-to-Date
Another big part of the GDPR is what is known as the “right to be forgotten.” This gives individuals the right to request the removal of any information that is outdated or inaccurate. This is a blessing for businesses because it helps weed out some of those older records that are notorious for cluttering up data systems. So, consumers get more control over their data, and businesses will have fewer inaccurate records. eCommerce businesses will need to provide a platform where customers have full access to their data to be compliant.
Also, businesses must allow consumers to remove their data at any time. Again, this is beneficial because we want to target leads that are interested in our products and services. When a lead opts into a system, they are showing interest, so they are more likely to convert into a buyer. On the other hand, if someone chooses out of a system, then they are showing that they are no longer interested. It would be a waste of time and resources to market to that group. The GDRP forces eCommerce businesses to develop systems that automatically filter out individuals who are no longer interested.
GDPR for eCommerce Business Regulations that You Must Know
- Businesses must completely delete a customer’s records upon request. Most companies will suppress data upon request but not altogether remove it. The GDPR states that it must be removed entirely.
- Under the GDPR, customers have the right to transfer any data they wish from one place to another.
- If there is a data security breach, you must report the incident within 72 hours.
GDPR for eCommerce business is a bit of a blessing in disguise since it forces firms to update their data management practices to meet the demands of today’s business world. We’ve found that a lot of companies have already outsourced eCommerce solutions to ensure their business meets these new regulations.