As an ecommerce business, you probably rely on the collection of consumer data – from names and email addresses to credit card numbers. But with all that data comes the responsibility of transparency, and the legal demand for a privacy policy.
If you need to create a privacy policy for your ecommerce operation, just download our free template below and customize to your own business.
1. Privacy Policy Template for Ecommerce [Full Text & Download]
Check out the full text of our sample privacy policy for ecommerce businesses by expanding the box below. Like what you see? Download the full template for free.
2. What is an Ecommerce Privacy Policy?
An ecommerce privacy policy is a document that explains your interactions with user data through your online business.
This document pays special attention to how information that is essential to the operation of an ecommerce site – like customer names, contact details, and payment information – is collected, used, and kept safe.
Furthermore, ecommerce privacy policies detail the use of computer cookies and other tracking technologies that are necessary for any online store to run effectively. For instance, functionality cookies are often used to enable online shopping carts to remember customer orders, while analytics and customization cookies help ecommerce site operators tailor the customer experience and recommend products.
Lastly, privacy policies for online stores outline how data is shared with third parties – such as ad vendors, partners, affiliates, and analytics programs.
3. Do I Need an Ecommerce Privacy Policy?
There are two big reasons your ecommerce site needs a privacy policy – to appease customers and to comply with laws.
Users expect to have access to your data-collection and privacy practices – especially if you’re collecting financial information from them like credit card numbers.
Furthermore, there are multiple laws that dictate the need for ecommerce businesses to host a privacy policy:
1. GDPR
Released in May of 2018, the General Data Protection Regulation (GDPR) demands high standards of privacy for businesses that market to users in the European Union (EU). One of the many requirements dictated by the regulation is that of websites to present users with a clear and comprehensive privacy policy.
2. CalOPPA
CalOPPA, a law pertaining to online businesses with Californian users, states:
“An operator of a commercial Web site or online service that collects personally identifiable information through the Internet about individual consumers residing in California who use or visit its commercial Web site or online service shall conspicuously post its privacy policy on its Web site.”
Simply put – if you have users in California, you need to post a privacy policy.
3. FTC’s Gramm-Leach-Bliley Act
The FTC’s Gramm-Leach-Bliley Act is a law enacted in 1999 which pertains to companies dealing with the financial data of individuals. As ecommerce sites, by nature, collect payment details from customers, they are subject to the guidelines of the act.
Among these guidelines is the requirement for companies dealing with consumer financial data to present users with a privacy policy.
4. Ecommerce Privacy Policy Examples
To get a better idea of what an ecommerce privacy policy looks like in action, check out some examples of how these companies got it right:
1. Target
Target’s privacy policy does a good job of detailing how customers’ information may be shared – noting both to whom and for what purposes the data is shared.
2. Signal Boosters
As you can see in the example above, Signal Boosters’ privacy policy makes a noteworthy effort to explain how data may be automatically collected from users through means such as cookies and web beacons.
3. Best Buy
Best Buy’s privacy policy lists every item of information that may be collected from users, including the source (“Information you give us”, “Information collected automatically online”, etc.) from which that information is gathered.
5. Conclusion
No ecommerce site can operate without collecting data from users. Where data is collected – privacy policies are needed. Download our free template above and fill in your details to create a user-friendly and compliance-ready privacy policy for your online store. Alternatively, if you’re a small business owner, customize your privacy policy using our privacy policy template for small businesses.
Once you setup your privacy policy you should also setup ecommerce terms and conditions and learn about ecommerce returns best practices to protect your platform from being used in unauthorized ways.
If this doesn’t seem like the right template for you, check out one of our other privacy policy templates below:
Privacy Policy | Description |
Website Privacy Policy Template | A standard privacy policy for basic websites and blogs. |
Mobile App Privacy Policy Template | A privacy policy for apps on the App Store and Google Play. |
GDPR Privacy Policy Template | A GDPR-ready privacy policy for any online business. |