Why Data Security Is Crucial for E-Commerce Businesses in the Age of Digital Transformation

• September 26, 2023


E-commerce data security is crucial to long-term success if you collect personal information from your customers. In some areas, you may fall under compliance issues if you don’t take steps to protect privacy.


Every year, more people get online and shop than ever before. This increased activity leads to opportunities for cybercriminals to steal credit card information and other sensitive details. Here’s why companies should embrace better security measures and ways to improve their efforts. 

1. Comply With Legal Requirements

You must comply with the General Data Protection Regulation (GDPR) Act if you sell to people in the European Union. US-based e-commerce companies shipping only to the United States may still fall under some new privacy laws.


As of 2023, five states enacted privacy regulations , including California, Colorado, Connecticut, Utah and Virginia. Any e-commerce brand doing business with residents in those states should ensure they protect data and inform customers what safeguards are in place and how they use the collected information. 

2. Gain Consumer Trust

Your customers trust you to use their information only to fill an online order. Many people were burned in the past when companies sold their telephone numbers or gave out other details that led to spam. 


On your website, list what information you collect and how you use it to earn trust. The more transparency you offer, the easier it will be for potential buyers to believe what you tell them. 


A pop-up that states no information is sold to third parties can go a long way to reassuring a wary shopper.

3. Keep Competitors in the Dark

Local competitors would love to get their hands on your inside data. They’d have access to your client list and insider information on how you attract new buyers. 


Adopt e-commerce data security policies to prevent other companies from getting their hands on your files. For example, if you sell an old iPhone, take the necessary steps to erase all old data and access points and restore the device to factory settings. 

4. Prevent Loss

Data breaches cost companies a lot of money. You must stop hackers so you don’t have to inform customers about cybercriminals gaining access to their information, potentially losing business. 


Online businesses sometimes operate on fairly tight margins. A catastrophic event can result in downtime and lost revenue. E-commerce data security becomes integral to keeping the doors open around the clock. 

5. Put Customers First

Everything from firewalls on your site to using a third-party cloud-based server with strong security protocols impacts data safety. When you put customers and their needs first, you’ll take steps to ensure their info doesn’t fall into the wrong hands.


Even the server you choose can impact cybersecurity and how easy it is to hack your files. 

Grow With Your E-Commerce Data Security

Cybercriminals will find more opportunities to get in via a backdoor as your company grows. Require users to log in with two-factor authentication and take the necessary steps to prevent phishing incidents and unauthorized logins. No company can completely prevent attacks, but taking steps to slow hackers down may cause them to walk away and leave your files alone.


Eleanor Hecks

Eleanor is the editor-in-chief at Designerly Magazine. She’s also a freelance web designer with a focus on customer experience. Eleanor lives in Philadelphia with her husband and dog, Bear.

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