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HomeResourceFuture Of E-Commerce In Cookieless World

Future Of E-Commerce In Cookieless World

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The world of digital marketing has developed very dynamically in recent years. The pandemic has also resulted in an increased number of internet users who shop online and the sheer number of products purchased. Cookies, which were heavily used by the e-commerce industry in their retargeting strategy, also contributed to motivating people to buy. However, the upcoming changes will make us live in a cookieless world. But what does that actually mean?

Related Post: What Is The Importance Of Customer Lifetime Value In An Ecommerce Business?

What are cookies?

Cookies are very small files that are stored on the hard drive of our computer. First of all, they are used to remember data, thanks to which we can maintain the continuity of the session when visiting a given website. Additionally, they monitor and analyze our internet traffic, trying to understand our needs and intentions.

Two types of cookies

Cookies can be divided into two different types that differ in their properties and capabilities.

1st party cookies – these files are used internally and they are very useful for the user, because they are responsible for remembering login details and for page settings, e.g. in terms of language or formatting. These cookies aren’t shared anywhere else, so they don’t evoke as much excitement as the other type of cookies. They are needed by both end-users and retailers, and thankfully the term cookieless world does not apply to them.

3rd party cookies – those files are shared with third parties. They are used not by the specific website we visited, but by its partners. This means that based on what we do on the Internet and what we search in the browser, companies create a user profile and personalize ads for it. Thanks to them, we display ads that may potentially interest us. The upcoming changes concern precisely the blocking of obtaining this type of cookie. So in the cookieless world, the ads we see can change completely.

types of cookies

What is changing?

Some time ago, Google announced that Chrome will stop supporting 3rd party cookies by the end of 2023. It caused a lot of emotions and was not understood by many, given that the company earned a lot of money on its use in Google Ads campaigns. However, as you can guess, Google also has an interest in this. Nevertheless, the most important thing now is that many e-commerce companies will have to completely change and analyze their internet marketing strategies, as well as find and test new solutions for personalized advertising. Adapting to the cookieless world can be a really big challenge for many of them.

Also Read: 10 Steps to Sell Your eCommerce Business in 2022

How will the future look like in cookieless world?

Blocking the use of 3rd party cookies does not mean that data will not be obtained in any way. Nevertheless, Google has signaled that it is not worth waiting for the counterpart of this type of cookie but rather looking for other methods of obtaining data. As you know, 1st party cookies will still be available, which will probably become the main tool for obtaining customer information. However, this will require on clients to voluntarily leave their data, such as e.g. e-mail. It is also expected that websites requiring registration will have a much larger share in the cookieless world, as they will be able to easily obtain information about users.

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