Cookie policy for online retailers

 

Cookies are small text files that are saved by a visitor’s mobile browser in their data storage system. Later, it can be encrypted to show you the relevant service or website. At times, cookies can store login credentials, so you don’t have to redo all the process. So, cookies are vital and useful for an online retailer and it’s a nice way to measure and grow your customer base.

Online Ecommerce website often use these cookies to help the customer to provide the better & customized shopping experiences.  They can utilize these stored data to target the relevant advertisement, to show suggested products & notifying them about the abandoned shopping carts.

Types of cookies and their merits:

Session cookies: This type of cookie can stay on your browser and keep the information until the closes their browser. As they don’t prolong, website would treat the user as a new visitor every time they closes their browser.

Persistent cookies: It has a long lifespan, it lasts until a fixed time or until the user clear the cookies along with the browser cache memory. These are saved to store the information like login details & record the customer’s activity. More information and action can be associated with this cookie.

Why are cookies important for an Ecommerce platform?

Cookies can track all the activity such as the user switching between pages and see what product they are clicking on, WishList, shopping cart & so on.

They can track all these information safely. User data don’t have to be stored in the website instead they can use a cookie. When the user visits your site, you can show them the local information based on the data that is saved in the cookie on the user’s machine. This can avoid the data breach or theft from the website owner’s database.

Below are the few options that site owner can consider to store the cookies:

Log-in credentials: This allows you to give discounts, coupons & more to the customers without asking them to log into their accounts.

Retargeting campaigns: You can use the cookie if someone has visited your site but hasn’t made a purchase. Using some tools, you can retarget the ads to the users who saved some products or just abandoned their shopping cart.

Personalized ad campaigns: This kind of campaign can improve the conversion rates and thanks to cookies for the dynamic ads that can double your click-through rate and reduced cost per acquisition compared to the standard static ads.

Third-party cookies

Your online service may allow third parties to set cookies on a user’s machine. Let’s say, you have included content from a third party in your website, the other party in this case may read and write their cookies onto the user’s machine.

So, both you and the third-party have a responsibility to make sure that users are clearly informed about cookies and for obtaining their consent.

In the future, digital advertising will be less about targeting practices and more about loyalty and relationship building.

Author: Mahindan Uthayakumar

Keywords

#Cookie policy

#Third party cookies

#Website cookies

#Types of cookies

#Uses of cookies in ecommerce platform

References

Elijah Masek Kelly., 2020. Are cookies good or bad for your ecommerce health? [Online] Available at: <https://customerthink.com/are-cookies-good-or-bad-for-your-ecommerce-health/> [Accessed 1st April 2021].

IC ICO., 2020. How do we comply with cookie rules? [Online] Available at: <https://ico.org.uk/for-organisations/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/how-do-we-comply-with-the-cookie-rules/> [Accessed 1st April 2021].


Comments

  1. Highly informative and descriptive information about cookies. very well described each and every part like type of cookies and mainly focused on why it is important in E-Commerce. I really get the knowledge about third party cookies which is interesting. Third party cookies used mostly for tracking, advertising purpose. Also, they allow owner to provide sometimes services like live chats etc. There is interesting thing about third party cookies that website can use various third part cookies to track customers data. In my opinion, I found third part more interesting and would like to know more about it in your blog future.

    ReplyDelete
  2. Very informative and helpful article. This article explains what are cookies and its use in a calm way. Cookies are very helpful for logging into a website without reentering data once we are logged in. Cookies will store data like usernames and passwords of the users which will help them for a faster website browsing. A user’s browsing history is a part of database which the website will use it for improving customer experience. Cookies have crucial role in making of best internet experience. Websites like shopping sites use cookies to track the products which are previously viewed, allowing such sites to suggest other products which users might like and store information about the products in shopping carts while users continue shopping.

    Harikrishnan H

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  3. Very informative writing. Well done Mahindan!.
    It is true that anyone can handle and manipulate cookies in a number of ways. However, at the same time it is better to be aware that deleting or blocking cookies may have a detrimental effect on your user experience, and parts of our website may become unavailable.
    Most browsers support cookies by default, but anyone can choose whether or not to accept cookies using the browser's controls, which are normally found in the "Resources" or "Preferences" tab. More information on how to adjust your browser settings, including how to block, manage, and filter cookies, can be found in your browser's support section. This sort of controlling creates massive effects on retail industry in connection with retail industry website and business done through online.
    However, many of the above-mentioned third-party advertisement and monitoring services offer you the option to opt out of their tracking schemes. The privacy policies linked above contain more detail about the information they gather and how to opt out.

    -- Thomas Devasia

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