7 Top Strategies to Protect E-commerce Customers' Data

Last Updated: 

February 21, 2024

Hacker attacks are becoming more widespread as more people access the internet.

As a result, companies recognise the need to safeguard their consumer bases and operations from potential threats.

The GDRP and CCPA regulations have heightened the importance of this necessity.

Failure to do so may jeopardise the continuity of business operations, resulting in devastating legal and financial implications.

So, if you're looking for solutions to prevent such consequences, keep reading. We'll go over seven top strategies for protecting E-commerce consumers' data in this article.

Let's get right to it.

Key Takeaways on Strategies to Protect Customer's Data in eCommerce:

  • Importance of Data Security: Protecting e-commerce customers' data is crucial for maintaining trust, avoiding legal and financial consequences, and ensuring business continuity.
  • Professionalism and Trustworthiness: Implementing proper security measures enhances your business's image, making it appear more competent and trustworthy to potential customers.
  • Avoid Financial and Legal Consequences: Protecting data can prevent potential legal issues and financial penalties, especially in the face of hacker attacks or breaches of regulations like GDPR and CCPA.
  • Reduce Customer Churn Rates: Building trust through data protection can lead to increased customer retention and loyalty.
  • Attract Investors and Business Partners: A secure business with a good reputation is more likely to attract potential investors and partners.
  • GDPR and CCPA Compliance: Familiarise yourself with GDPR and CCPA regulations to ensure you're handling customer data correctly and avoiding potential violations.
  • Collect Only Essential Data: Limit the amount of data you collect to only what's necessary for transactions to reduce potential exposure to threats.
  • Shift to HTTPS: Transitioning to HTTPS ensures encrypted communication between the server and the browser, enhancing security.
  • Use Strong Passwords and Authentication: Implement strong password requirements and additional security measures like two-factor authentication to bolster account security.
  • Encrypt Sensitive Information: Encrypt crucial data such as passwords and credit card details to protect them from unauthorised access.
  • Keep Software Updated: Regularly update all plugins, software, and themes to patch vulnerabilities and enhance security.
  • Limit Access to Data: Restrict the number of employees who can access sensitive customer data to minimise potential internal threats.

In essence, safeguarding e-commerce customers' data is paramount for business success. Implementing the strategies mentioned can help businesses avoid potential pitfalls and ensure a secure environment for their customers.

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Why is it important to secure your e-commerce and user data?

secure your e-commerce and user data

Before diving into the strategies that can aid you in protecting your e-commerce customers' data, it's crucial to understand why it's so critical to implement them.

1. Appear professional and trustworthy to potential customers

One of the first benefits of protecting your e-commerce customers' data and adopting the appropriate security systems to do so is that potential consumers will immediately see your company as competent and trustworthy.

If this occurs, they will be more willing to buy from you and will feel more comfortable sharing more personal information with you.

As a result of the additional data, you'll be able to reshape your marketing campaigns and give tailored experiences and offers to your users, improving the likelihood of conversion.

2. Avoid financial and legal consequences

Hacker assaults, as stated at the beginning of this article, can have serious and long-term consequences for your company.

Such repercussions can be legal and financial, and depending on the size and availability of your business, they can even jeopardise your entire enterprise, leading to collapse.

Instead, by taking all required precautions to avoid any hacker attacks and CPPA and GDPR breaches, you'll be able to avoid such adverse consequences and ensure the continuity of your business.

3. Reduce customer churn rates

The objective of every e-commerce business is to increase client retention and ensure that consumers return. In this way, they value loyal customers above occasional ones who make a purchase and never return.

To reduce churn rates, you must build a foundation of trust with your customers. As a result, demonstrating to customers that you care about data privacy and that you take all necessary measures to secure their personal information will encourage them to make more purchases and become loyal to your company.

4. Attract investors and business partners

As you might imagine, a hacker assault involving a large amount of sensitive data may harm your company's image. Such unfavorable events might cause potential investors and other businesses to avoid you since they will regard your company as untrustworthy and unsafe.

A secure and trustworthy firm with a good reputation, on the other hand, may attract a lot of investors and other businesses interested in doing business with you.

As you can see, this may help you expand your business, increase its visibility, and make it more relevant in the long term.

7 Strategies to protect e-commerce customers' data

protect e-commerce customers' data

1. Understand GDPR and CCPA

Recognise GDPR and CCPA requirements as one of the first steps in protecting your e-commerce customers' data. These two regulations spell out how businesses and organisations should manage user data, as well as the steps they must take to safeguard it.

As a result, depending on your company's location, you may need to refer to GDPR or CCPA.

Following the reference regulation would undoubtedly protect your company from any violations that might result in significant financial fines and legal repercussions, as well as a negative influence on your organisation's reputation.

If you want to know more about the California Privacy Rights Act, read Osano's guide.

2. Collect only essential data

You may be tempted to get to know your consumers as much as possible for marketing and sales purposes, and hence request a lot of information during the registration or purchase process.

Despite the fact that asking for too much information may discourage consumers from continuing with the purchase process, it may also result in more data being exposed to possible hacker attempts. In fact, collecting too much data typically results in the vulnerability of customers' data.

As such, one measure you might take to prevent potential hacker attacks and the theft of sensitive data is to collect just the information you need at the time of registration and purchase. As a result, avoid collecting data that isn't required for the transaction and might expose customers to possible threats and damage their security.

3. Shift to an HTTPS system

Users are notified about the website's security risk when they visit a non-HTTPS website. This serves as a warning and prevents consumers from trusting your website, causing them to leave and not return. As you can expect, this might result in a loss of prospective purchases, conversions, and website traffic.

Furthermore, Google considers non-HTTPS sites to be insecure and consequently ranks them lower in search results, reducing your website's exposure. These are all potential implications of not complying with the PCI-DSS rules for your website and business in general.

To avoid this, you may get an SSL certificate, which will encrypt the communication between the web server and the browser of the visitor. As a consequence, no other parties will be able to access the communication, which will assist protect e-commerce consumer data. To secure customers' data, you need an SSL protocol that can secure subdomains (usually e-commerce site carries). Comodo PositiveSSL wildcard from Comodo is one of the popular certificates that can protect data passing between the server and the browser.

4. Use strong passwords and secure systems of authentication

Another action you can take to protect your customers' data from being stolen or hacked is to strengthen your security systems.

There are many systems you may integrate into your e-commerce site to strengthen security thanks to today's technologies. For example, you may demand your clients to enter a strong password with a minimum length, special characters, and numbers during the registration or purchase process using strong password generator.

You may also utilise extra security mechanisms, such as two-factor authentication, which requires users to enter their password and then authenticate their access using another device or tool, such as their smartphone.

A typical example is sharing important passwords or data without encryption. When the software in your device finds that the data needing encryption is not encrypted, it takes action by blocking the activity to protect the device to ensure data security. This level of proactive security is made possible through machine learning bot detection software. If you're considering implementing such security measures, you may wonder, "What's the best bot detection tool?". Additionally, you may implement reCAPTCHA systems to guarantee that users are not bots or possible hackers who might threaten the security of your company's and customers' data.

5. Encrypt passwords and other sensitive information

Encrypting sensitive data, such as passwords and credit card details, is one of the greatest ways to safeguard e-commerce data. Securing them is difficult, and encrypting them necessitates the use of specific procedures. Using intrusion prevention systems such as firewalls and establishing roles, for example, can be a simple approach to secure your consumers' data. The majority employ encryption, although an encryption key may be used to decode them.

Hashing is a more advanced encryption technology that is commonly employed in network communications. The hashing procedure provides a degree of security by preventing tampering with encrypted data.

6. Use updated software and solutions

Another strategy to ensure that your e-commerce site and clients' data are safe from any cyberattacks is to keep all the plugins, software, and themes you're using up to date.

For example, you should always prefer premium themes over free themes because the latter are not regularly updated, and hackers can simply exploit the vulnerabilities and wreak havoc on your website.

Similarly, always choose premium plugins over free ones, and keep all of your plugins and applications up to date. You should also make sure that the operating systems are updated on a regular basis as an extra precaution.

To ensure that all of your applications are updated on time, you may set up a notification system to be notified whenever a new version is launched or an update is available. Additionally, consider using rotating residential proxies to enhance your website's security by mitigating the risk of IP-based attacks and maintaining anonymity online.

7. Limit access to sensitive data

If you own a large company, you might be tempted to give all of your employees, including yourself, access to and share customer data internally. Although this may appear to be useful or beneficial for administrative and organisational purposes, it may jeopardise the security of users' data, putting their information in the wrong hands.

As you might guess, if this happens, your organisation could suffer serious financial and legal penalties. So, depending on the size of your company, one method to avoid such unpleasant circumstances is to limit the number of employees who have access to sensitive data, maybe to just one person or a single department.

This will protect your organisation and consumers by preventing improper sharing and handling of sensitive data.


Protecting your e-commerce customers' data is the key to a successful business.

As seen throughout this blog post, there are many actions and steps that you can take in order to improve the security of your online business. Strengthening the authentication processes and updating the software and apps you use are just two examples.

Using these suggestions on a daily basis will help you avoid long-term financial and legal consequences, as well as a negative reputation.

Thank you for taking the time to read this blog post. Hopefully, it was informative and helpful to you.

If you want to read more, please check out this article about protecting your business against data leaks.

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