The game of e-commerce is no longer restricted to just purchase of goods and services, rather complete mechanics are involved including delivering relevant content, product recommendations, and offers based on user’s preferences, behaviour, and demographics. E-commerce platforms aim to enhance customer satisfaction, engagement, and conversion rates by providing a personalised shopping journey. While e-commerce platforms tend to benefit from understanding consumer behaviour through purchase patterns and other relevant data points, besides driving personalised communication, users, on the other hand, are always on the edge due to data being exposed. Experts believe this eventually increases concerns such as breaches of data privacy and security. “ For businesses to succeed in the world of e-commerce, finding the ideal balance between personalisation and privacy is crucial. In the current digital economy, where data is used as the primary medium of exchange, ensuring strong data security is not only required by law but also morally right,” Piyush Goel, founder, CEO, Beyond Key, told FE-TransformX adding that data security is not just an expense but is a calculated investment in preserving the reputation of an organisation.
As the festive season is here, e-commerce platforms are expected to see a rise in engagement. Industry experts believe that the first two days (October 7, 2023, and October 8, 2023) of the festive season sale of 2023 have witnessed over 15% growth in e-commerce order volumes as compared to the first two days (September 22, 2022, and September 23, 2022) of the festive season sale during 2022. E-commerce retailers are expected to garner sales worth Rs 90,000 crore this festive season, which is about 20% higher than last year, as per insights by Redseer Strategy Consultants. This is expected to be driven by about 140 million shoppers who are expected to transact online at least once during this festive month.
In 2022, retail e-commerce sales crossed $5.7 trillion worldwide and is expected to increase in the coming years, as per insights from Statista. E-commerce platforms such as Amazon, Flipkart, Myntra, Meesho and Snapdeal, among others, are believed to benefit the most this festive season. As a result, these firms are also investing in measures to keep consumer data safe. With technologies such as Transport Layer Security (TLS) encryption which evolved from a previous encryption protocol called Secure Sockets Layer (SSL) can help protect web applications from data breaches and other attacks with its protocols such as encryption, authentication and integrity. “ TLS encryption protocol establishes a secure channel for data transmission, making it challenging for cyber criminals to intercept or manipulate information. Through the adoption of these advanced security measures, customer data is not only shielded from data theft during payments but also protected against potential misuse through phishing attempts,” Varun Tangri, CEO, founder,QueueBuster POS , explained.
As global Internet access and adoption rapidly increases, with over five billion Internet users worldwide, the number of people making purchases online is ever-increasing. Data personalisation not only drives innovation but also creates risks in the digital age. A website’s capacity to make product recommendations, track its customer’s preferences and improve their shopping experience can also put customer’s privacy at risk. “Trust, respect and data protection are the cornerstones upon which personalisation is built. E-commerce platforms need to be the designers of a digital space where personalisation and privacy co-exist. It should be a world where practicality and security coexist, providing a distinctive shopping experience while closely guarding its user’s data,” Prateek Sachdev, CEO, Mobikasa,said.
Moreover, consumer experience can be significantly improved by personalisation when done correctly. Experts believe the secret is to strike a balance between the two. To ensure that consumers give their informed consent, businesses must be transparent about the data they gather and how they use it. “ Data security cannot be compromised. Retail and startup firms are acutely aware of the damage that improper treatment of customer data can cause to their brand, especially in an era characterised by high-profile data breaches. It is essential to have strong security measures in place, such as encryption, secure databases, frequent audits, and firewall protection, among others,” Pooja Sodhi, co-founder, CEO, Combonation, concluded.
