Cookies are small text files that a website puts on a user’s computer or mobile device when they visit. They allow websites to store user information about their visit. eCommerce sites use cookies to differentiate customers, track preferences and settings, and provide tailored ads based on interests inferred from previous visits. The data they gather is often considered confidential and sensitive information↗. In May 2018, the General Data Protection Regulation (GDPR) became effective, mandating all European businesses to safeguard consumers' personal data, including the use of cookies. State or federal governments may punish or sue you otherwise. For more info about this, take a look at our guide to GDPR-compliant cookie consent↗.
What is Included in a Cookie Policy?
A cookie policy is required by law if your eCommerce store collects personal information. GDPR compliance↗ means you need to provide your store with the following:
- A clear, easy-to-find eCommerce privacy policy↗ that outlines how your website gathers, uses, and distributes information. This applies to cookies and other data collected.
- A cookie policy that describes why and how cookies are used and how users may opt out.
- A process to report unauthorized access to personal data.
Cookie policies do not just empower EU citizens. They also protect merchants from lawsuits by unsatisfied customers who claim unfair or inappropriate treatment by a company.
Do You Need a Cookie Policy on Your Website?
Any eCommerce platform you choose will require you to create your own privacy policy. Thankfully, there are tools to help you do so. For example, to draft a privacy policy for Shopify↗, the platform offers a tool to guide you. To limit the data collection of European customers (from the EU, EEA, UK, and Switzerland) visiting your Shopify store, you can select the level of restrictions for marketing and analytics data collection in your Shopify Admin↗.
How Cookies Impact Your Customer Experience and Conversions
Your eCommerce store relies on cookies to function smoothly. Session cookies keep customers logged in while they browse and add items to their cart. Without them, users would lose their shopping cart every time they click to a new page—a guaranteed way to tank your conversion rate.
Analytics cookies (like those from Google Analytics) show you which products customers view, how long they spend on pages, and where they drop off. This data helps you optimize your store layout, improve product pages, and fix checkout friction. Advertising cookies let platforms like Meta and Google recognize returning visitors so you can show them relevant ads—often the most efficient way to bring them back to complete a purchase.
The challenge is that many of these cookies require explicit consent under GDPR and similar laws. You need to be transparent about which cookies are essential (required for your store to work) and which are optional (used for marketing or analytics). When you force customers to click through an overly complicated cookie banner before they can even browse, you risk annoying them and losing sales.
The balance you're aiming for is clear: use cookies strategically to improve their experience and your business metrics, but be honest about what you're doing. A well-designed cookie policy and banner explains what each cookie type does in plain language, making it easy for visitors to understand and accept—without feeling manipulated.
Cookie Consent and Your Advertising Platforms
If you run ads through Meta, Google, or TikTok, your pixel implementation depends on cookie consent. These platforms use first-party cookies to track conversions—when a customer clicks your ad and makes a purchase, the pixel records that event so you can measure ROI and optimize campaigns.
Under GDPR and laws like the California Consumer Privacy Act (CCPA), you cannot fire your Meta Pixel or Google Analytics until a user has consented to marketing or analytics cookies. If you do, you risk fines and customer complaints. Many eCommerce brands make the mistake of assuming their ad platform automatically handles compliance—it doesn't.
Your responsibility is to:
- Obtain consent before the pixel fires on page load
- Document that consent in case of an audit
- Honor opt-out requests and stop tracking those users
- Update your cookie policy if you change which pixels or tracking tools you use
If you use Klaviyo for email marketing, you may also collect behavioral data (like browsing history) to segment customers and personalize campaigns. This requires consent too. The technical setup can be tricky: your cookie banner must communicate with your pixel, your CMS, and your marketing tools simultaneously to ensure compliance across your entire customer journey.
State-Level Privacy Laws and Cookie Requirements
While GDPR applies to European visitors, you cannot ignore U.S. privacy laws if you operate a Shopify or BigCommerce store. California's CCPA (and its successor, the California Privacy Rights Act or CPRA) requires you to disclose what personal information you collect, why you collect it, and who you share it with.
Virginia, Colorado, Connecticut, and other states have passed similar privacy laws with effective dates between 2023 and 2025. Unlike GDPR, these laws often give consumers the right to opt out of data sales or targeted advertising, rather than requiring opt-in consent.
For an eCommerce business, this means:
- A single privacy policy may not be enough—you may need state-specific disclosures
- Your cookie banner should reflect the rights of visitors from different jurisdictions
- You need a process to handle opt-out requests (often called a "Do Not Sell My Personal Information" link)
- Your terms of service should clarify which cookies and trackers you use
Many mid-market eCommerce brands use a single global cookie policy and banner, which works if you're transparent and give users meaningful control. However, if you collect significant traffic from California or Virginia, it's worth auditing your current setup to ensure you're meeting state-specific requirements.
Auditing Your Cookie Usage Regularly
Your cookie stack grows over time. You add a new analytics tool, integrate a live chat widget, install a review plugin, or test a new ad platform. Each addition brings new cookies or tracking scripts, and it's easy to lose track of what's running on your site.
A cookie audit means reviewing:
- Every third-party script and what data it collects
- Whether each cookie is truly necessary or can be removed
- If your privacy policy and cookie banner still accurately describe what's happening
- Whether you're collecting more data than you actually need
Tools like Chrome DevTools or a cookie scanner can help you see what's on your site. Once you know what's there, you can decide whether it's worth the compliance burden. For example, if a plugin collects user behavior data but you never use that data, consider removing it. Fewer cookies mean simpler compliance and faster page load times.
Update your cookie policy whenever your tracking setup changes. If you add Google Ads conversion tracking, your policy needs to mention it. If you swap email tools from Klaviyo to Klaviyo, you don't need an update. This ongoing attention prevents gaps that regulators or customers might later challenge.
Managing cookies across multiple platforms and jurisdictions is complex enough that most growing eCommerce brands benefit from a dedicated tool to track consent, manage cookie banners, and ensure your policies stay current with your actual data practices.