E-commerce, data privacy and external services


Considering the fact that online retailers are always competing with each other to provide the most seamless digital experience and to attract more customers, the e-commerce market is a constantly evolving one.

To ensure consumer satisfaction, online shopping sites take the help of several third-party vendors who are specialised in offering key functionalities such as checkout, payment processing, reviews and many more. While this can expand the merchant’s capabilities, it also impacts on data privacy. Retailers have to meet various challenges which include lack of visibility and control. An external firm is able to access website data and collect information about clients. Moreover, third-party service is also a constantly evolving ecosystem in which, very often, the vendor brings in a fourth party which has no contractual agreement with the native brand. It has the same level of data access.

This lack of visibility and knowledge on the part of the online retailer is a small risk despite the privacy measures in place. To remedy this situation, firms should better monitor the external services. They have to constantly oversee the operations being conducted and implement the appropriate security features to find the right balance between creating seamless shopping experiences and protecting consumers’ privacy.


Monitor your external services

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