How Does GDPR Affect Ecommerce Businesses?
The new General Data Protection Regulation will change how businesses collect personal data and what they do with it. Although this regulation applies to European residents, it will also impact users outside of Europe, including the U.S.
GDPR and Its Impact On Ecommerce Businesses
Personal data regulations existed before we started using smartphones. Smartphones eventually started collecting personal information for big companies, so that mobile interaction between apps and more, could be possible. Things got a little out of hand and in April 2016, the European Union adopted the General Data Protection Regulation —also known as GDPR, which goes into full effect on May 25th, 2018.
Part of the purpose of GDPR is to redefine how ecommerce is done in Europe, which would impact the way businesses engage with customers, the tools they use, and even the way they use them. Tools like MailChimp, Google, and Facebook may be among the tools your business uses, and after May 25th, they too need to comply with GDPR.
Will My Ecommerce Business by Impacted by GDPR?
That depends on whether or not your ecommerce business offers products or services to consumers in Europe. If this is the case, then yes, GDPR does affect your business, as well. Not all requirements will apply to you if you run a small business. Some of those requirements are only for large companies. If you own a local business, it will not be impact you, although, it’s good to be aware of what this entails.
Some of the main points of GDPR for ecommerce businesses are:
- Consent Businesses must let their users or customers know exactly how their data is being used. Pre-checked boxes will no longer be acceptable, as they don’t constitute consent.
- Avoid Collecting Unnecessary Data This will limit your level of exposure. If you don’t need to know where your user works, you don’t need to ask.
It’s basically all about being upfront and honest about what your business will and will not do with their users’ personal data.
WooCommerce Gets Ready for GDPR
If your ecommerce business is managed in WordPress via WooCommerce, we have good news for you. WooCommerce’s upcoming update will addresses the way it stores data and will have the ability to send out ‘rights for access’ requests, so your customers are aware of what information is being stored on your site. If you own an ecommerce business and would like to know more about WooCommerce and GDPR, visit woocommerce.com/gdpr/.
If your ecommerce site needs to be updated, now would be a great time to do it and take care of these GDPR updates, too. If you are in the travel industry, hospitality industry or have an ecommerce store, we recommend you make sure that your booking system or the software you are using, complies with this regulation or make changes as needed. Impressions Agency can help get your website to where it needs to be to provide your customers with what they need, while also keeping their personal data safe.