If you've ever heard of PII (personally identifiable information), it's likely been a story about a data breach in a company’s digital network or identity theft from a person’s credit card. When personal data ends up on the dark web, it can take months or years to clean up the damage. Thus, eCommerce merchants must take stringent measures to ensure the security of their personal information and that of customers and employees. To better manage the data you collect, you need a thorough understanding of PII. Different Categories of PII In general, PII covers sensitive information↗ that can be used to identify an individual, and it is divided in two categories:
1. Sensitive PII
This includes any information that directly and objectively identifies an individual, including legal statistics such as:
- Full name
- Social Security Number (SSN)
- Driver’s license
- Mailing address
- Credit card information
- Passport information
- Financial information
- Medical records
2. Non-sensitive PII
Also referred to as indirect PII, this type of information is freely available from public sources such as phonebooks, the internet, and company directories. When coupled with another data item, it can distinguish a person but is insufficient to positively identify them. For instance:
- Zip code
- Race
- Gender
- Date of birth
- Place of birth
- Religion
Any data that cannot be used to identify a specific individual or customer falls under this category. Non-sensitive PII is also known as anonymous data, which companies typically use in advertising applications. Businesses that share client data for advertisements typically use anonymization techniques to encrypt the PII so that it is received in an unidentifiable form. In eCommerce, PII is usually associated with collecting data to easily identify customers and tailor marketing communications to their interests. Customer data can also be used to improve the shopping experience by displaying relevant goods or speeding up the checkout process by storing relevant information. However, retailers can safely assume that most customers would not choose to share their PII. If they really need to, it would be the bare minimum, and they would prefer it not be saved for future marketing purposes. The Importance of Securing PII PII is a valuable asset used in identity theft. As a retailer, protecting PII↗ is your responsibility. Failure to do so could lead to serious consequences. A staff member with website access will typically have a pass to a customer’s confidential and sensitive information↗, including their name, email, address, and phone number. This, along with their credit card or payment info, is enough to commit identity fraud. Retailers must also realize that cybercriminals can breach data systems to steal PII, which is then sold on illegal marketplaces. Because of the exploitation and abuse of private data for profit, governments worldwide have tightened regulations on who can collect data, how it should be stored, and its use for marketing or other purposes. All online stores dealing with customer data need an eCommerce privacy policy↗ that can be easily accessed by customers. Even if you don't gather personal information, it is a way to boost your business’s credibility. In the US, the California Consumer Privacy Act is one legislation that should be on your radar. If you're not based there, be aware of similar regulations in other economic areas. For example, The General Data Protection Regulation (GDPR) protects those in Europe (both EU and non-EU citizens). GDPR compliance↗ prevents companies from collecting or storing PII and other sensitive data without clear consent. For more info about this, read Understanding GDPR and Cookie Consent in eCommerce↗. PII Violations With Examples Though self-governance is laudable, compliance with local, regional, and national laws and regulations is just as important. Regulatory bodies have started levying hefty fines for compliance violations. The three main types of PII violations are:
- Identity theft The most common type of PII violation, this involves stealing someone’s personal information and using it for fraudulent purposes like opening credit accounts or taking out loans.
- Financial fraud This is where criminals use someone’s identity to open credit card accounts, make charges on existing accounts, or even steal money from bank accounts and retirement funds by transferring it out through electronic channels.
- Medical identity theft Offenders can also use stolen medical records to access health care benefits paid for by someone else. Numbered List There are plenty of ways for customers to manage their privacy online and for businesses to avoid over-sharing information—but data privacy is a concern that will only continue to grow as the world becomes increasingly connected. Businesses and consumers need to keep this in mind and pay attention to the data collection and management processes involved in every transaction. Did you know that there are differences between PII and personal data? Read PII vs. Personal Data: What's the Difference↗ to learn more
How PII Flows Through Your eCommerce Stack
Your Shopify store, email marketing platform, analytics tools, and ad networks all collect and share customer data. Understanding this flow is critical because each touchpoint is a potential exposure point for PII.
When a customer completes a purchase on your site, their name, email, shipping address, and payment information move through multiple systems. That email might sync to Klaviyo for marketing automation. Their browsing behavior gets tracked by Google Analytics and the Meta Pixel. Their phone number could be pulled into SMS marketing tools. Each connection creates a data chain—and if any link is misconfigured or breached, PII leaks.
Many eCommerce brands don't realize that third-party tools they use are processors of PII. You're legally responsible for ensuring these vendors handle data properly, even if they're the ones storing it. This means reviewing their privacy policies, data processing agreements, and security certifications before integration.
The practical takeaway: Map out every tool and service that touches customer data in your business. Document what information each one receives, where it's stored, and how long it's retained. This exercise alone often reveals data you didn't need to collect in the first place. Fewer touchpoints mean fewer risks. If a tool isn't essential to your operations, disconnect it. If you must use it, ensure you have a signed data processing agreement that clarifies roles and responsibilities.
PII Retention: How Long Should You Keep Customer Data?
Most eCommerce brands keep customer data indefinitely—but they shouldn't. The longer you hold PII, the longer you're liable if it gets breached, and the more you're asking customers to trust you with sensitive information.
A practical retention policy aligns data storage with business need. You need purchase history and shipping addresses to fulfill orders and handle returns. After the return window closes (typically 30–90 days), that immediate need expires. Financial records may require longer retention for tax and accounting purposes—often 3–7 years, depending on your jurisdiction.
Here's where many brands slip up: They keep customer email addresses and purchase history indefinitely for marketing, without clear justification or customer consent. Under GDPR and similar privacy laws, this violates the storage limitation principle. You can't just hoard data "just in case."
Set explicit retention schedules for each data category. After the retention period, delete or anonymize the data. This isn't just legally sound—it's operationally smart. Less data to manage means lower security overhead and reduced liability.
If you're running email campaigns, segment by engagement and purchase recency. Inactive subscribers should be removed or re-engaged within 6–12 months. When a customer requests deletion (a DSAR), honor it within the legal timeframe—typically 30 days—rather than archiving indefinitely. Document these deletions for audit purposes.
PII and Customer Trust: What Transparency Looks Like
Customers share PII with you reluctantly. They expect transparency about what you're doing with it. Vague privacy policies and surprise marketing emails erode trust and increase the risk of complaints, chargebacks, and regulatory scrutiny.
Transparency starts with a clear, accessible privacy policy—not hidden behind legal jargon. Tell customers: what data you collect, why you collect it, how long you keep it, and who you share it with. If you use Meta Pixel or Google Analytics, say so explicitly. If you sell data or share it with partners, disclose it upfront.
Consent is the foundation. Before collecting PII beyond what's necessary for checkout, ask permission. Cookie banners should clearly distinguish between essential cookies (payment, fraud prevention) and optional ones (analytics, retargeting). Don't pre-check non-essential boxes. Many customers will uncheck them if given the choice, and that's fine—it means your marketing becomes more targeted to genuinely interested people.
When you ask for optional PII—like phone numbers or birthdates—explain why. "We'll text you exclusive offers" is transparent. Burying text details in fine print is not.
Transparency also means honoring customer preferences. If someone opts out of marketing, respect it. If they request their data or ask for deletion, respond promptly. These actions build goodwill and reduce the friction that leads customers to file complaints with regulators.
The complexity of PII management grows with every new marketing tool and data integration you add to your tech stack. Without centralized oversight, it's easy to lose track of where customer data lives, how it's being used, and whether you're complying with the rules. A consent management platform can help you maintain visibility, enforce retention policies, and document consent decisions consistently across all channels.