{"id":7596,"date":"2025-03-10T09:19:31","date_gmt":"2025-03-10T01:19:31","guid":{"rendered":"https:\/\/www.trackingmore.com\/blog\/?p=7596"},"modified":"2025-03-10T15:03:40","modified_gmt":"2025-03-10T07:03:40","slug":"ecommerce-compliance","status":"publish","type":"post","link":"https:\/\/www.trackingmore.com\/blog\/ecommerce-compliance\/","title":{"rendered":"Your Ultimate Guide to eCommerce Compliance in 2025"},"content":{"rendered":"

For people who are fairly new to the eCommerce world, eCommerce compliance may seem like a daunting task. Many choose to ignore it, believing that the compliance aspects are too costly or confusing to handle.<\/span><\/p>\n

Others mistakenly assume that using common marketplace platforms, such as those from <\/span>Shopify<\/span><\/a> or <\/span>Amazon<\/span><\/a>, automatically ensures compliance. In fact, it is not always the case, and at times even leads to serious repercussions.<\/span><\/p>\n

Advanced economies are the ones with the greatest calling for eCommerce compliance. In the United States, there is a <\/span>revision for data privacy laws<\/span><\/a>, with 5 states calling for enforcing new GDPR-inspired status in 2023 and more to follow. We are also seeing global data protection authorities, such as France\u2019s National Commission of Informatics and Liberty (CNIL), adopting new rules for <\/span>GDPR enforcement<\/span><\/a> for cross-border businesses.<\/span><\/p>\n

While laws may differ in different countries, the message is clear: <\/span>eCommerce compliance is going to be as relevant as ever<\/b>. It also establishes the rationale of our article to educate and inform you of the latest themes that are happening in this area.<\/span><\/p>\n

What is eCommerce Compliance?<\/b><\/h2>\n

eCommerce compliance can be a boring term but is increasingly relevant to those who actively participate in the field or those who are looking to expand to different markets.<\/span><\/p>\n

\"gdpr-compliance\"<\/span><\/p>\n

 <\/p>\n

eCommerce compliance ensures that all aspects, from consumer data, financial transactions, and all the handling of the orders, are dealt with in an ethically, securely, and compliant way. It also serves to deal with problems that arise from this emerging field, including data leaks, fraud, regulatory violations, and customer dissatisfaction.<\/span><\/p>\n

It also differs by country, with the advanced countries such as the U.S. and Europe having more sophisticated regulations than the others.<\/span><\/p>\n

Consumer sentiment towards compliance also points to the stricter side. According to the <\/span>2022 PwC report<\/span><\/a>, they pointed out that 71% would not buy from a company they do not trust; and a whopping 73% would not recommend an eCommerce site to their network if they feel that there is a lack of security measures.<\/span><\/p>\n

eCommerce compliance reflects <\/span>trust<\/b>, as the PwC report suggests. Without security protocols in place, consumers, especially eCommerce consumers, may feel that they are less protected when purchasing on the website. Especially as many sensitive customer data are handled day by day, it calls for a stronger adherence to eCommerce compliance.<\/span><\/p>\n

Reasons for Compliance in eCommerce<\/b><\/h2>\n

The reason for compliance < The cost of non-compliance<\/b>. Many believe that compliance is a cost issue and thereby ignore it. However, the problem is not when compliance incurs extra costs to your eCommerce business. Instead, it is when non-compliance leads to additional issues for the eCommerce business.<\/span><\/p>\n

At the financial level<\/b><\/h3>\n

Non-compliance may lead to significant financial losses. According to an article by <\/span>Sumsub<\/span><\/a>, the eCommerce industry has witnessed a rise in fraudulent activities, prompting the need for AML compliance in the industry. It is even estimated that the numbers are as high as USD $41 billion in 2022, and is projected to even rise to $487 billion by 2023.<\/span><\/p>\n

Other potential issues may include legal penalties, fines, and operational disruptions that derive from violating the compliance issues.<\/span><\/p>\n

It explains why a lot of eCommerce players will choose logistics providers that highly emphasize compliance. But this is not necessarily the full picture.<\/span><\/p>\n

At the reputational level<\/b><\/h3>\n

The problems of non-compliance extend to the reputational level, where it leads to legal penalties, negative media, and a tarnished reputation. In the past, you can see a rising publicity of eCommerce companies that have data issues.<\/span><\/p>\n

Facebook data privacy scandal<\/span><\/a> can be an example: Although not related to eCommerce directly, their improper sharing of user information to Cambridge Analytica, a data analytics firm by the Trump Campaign, has led them nowhere but a serious lawsuit and a monetary payment of $725 million to settle this issue.<\/span><\/p>\n

On the contrary, having compliance embedded in your eCommerce operations can help nurture customer trust and legal protection. It means that customers can feel relieved that their data and information are protected when using your platform.<\/span><\/p>\n

At the growth level<\/b><\/h3>\n

Compliance is a continuous process. It requires improvement from time to time, a rapid iteration depending on the growth stages. As you grow in scale, you may also find yourself working with more and more stakeholders. This includes the <\/span>transitioning from first- to third-party data<\/span><\/a>, or the use of third-party logistics providers to handle your customer\u2019s data<\/span><\/p>\n

This leads to our point that compliance should be dealt with as early as possible. Or else it may turn out as a roadblock for your eCommerce business as you grow.<\/span><\/p>\n

Key Data Protection Regulations for eCommerce<\/b><\/h2>\n

Depending on the country and region that your eCommerce business operates in, or if you are now involved in cross-border eCommerce, various compliance laws may apply. However, the underlying principle for all eCommerce compliance laws remains the same: <\/span>Protect consumer data<\/b>.<\/span><\/p>\n

From the United States, Europe, and Asia, we will explore some of the compliance laws that are the most connected by eCommerce companies:\u00a0<\/span><\/p>\n

General Data Protection Regulation (GDPR)<\/b><\/h3>\n

A familiar term to many. The General Data Protection Regulation (GDPR) is the <\/span>cornerstone<\/b> of data protection laws in the European Union (EU). Similarly, the United States and many global countries are following suit.<\/span><\/p>\n

The <\/span>GDPR<\/span><\/a> establishes strict guidelines for the collection and processing of personal information of individuals within the business. The key requirements are:<\/span><\/b><\/p>\n