What Is Cookies in Website: Definition and Use In Ecommerce

HTTP cookies are an essential component of ecommerce, offering a means to store and retrieve information from a user’s browser.

Understanding how to utilize these small yet powerful site data packets in ecommerce web development can significantly improve customer engagement, streamline processes, and drive business growth.

Definition of HTTP cookies and their purpose in ecommerce

HTTP cookies, browser cookies, or simply internet cookies are small pieces of data that a web server sends to a user’s web browser when they visit a website.

Website owners and web developers utilize cookies in ecommerce to improve the average user experience, serve ads, and track user behavior for marketing and analytics purposes.

Types of cookies and how they work

Most modern web browsers like Internet Explorer and Google Chrome allow users to control their cookie settings. Users can choose to reject cookies, allow all cookies, or allow only certain types of cookies.

There are six main types of HTTP cookies:

• Session cookies — These are temporary cookies that are deleted when the user closes their browser. Session cookies are typically used to track user activity during single-user sessions, such as the items in their shopping cart.

• Persistent cookies — These are stored on the user’s computer until they expire or are deleted by the same user and can be used for various purposes, such as remembering a user’s login credentials or other personally identifiable information. This is often referred to as a magic cookie.
  
• Zombie cookies — These are a type of persistent cookies, however, zombie cookies create a backup version of themselves whenever deleted. They are considered personal data-invasive and in some cases unethical, as they are difficult or borderline impossible to completely remove.
  
• Functionality cookies — These are a subset of persistent cookies and are associated with the storage of user preferences like language, currency, and other settings. They are a very important engine for improving user experience.

• First-party cookies — These are set by the website that the user is currently visiting and are typically used for the user’s session management, personalization, and analytics.

• Third-party cookies — A different domain sets a third-party cookie than the website the user visits. Third-party cookies are typically used to track users and in advertising, so you can opt to block third-party cookies on some e-commerce sites.

It’s also important to not confuse cookies with ones stored on users’ devices like Flash cookies (cookies that store Adobe software preferences). Unlike these computer cookies, HTTP ones are primarily browser-stored.

Understanding the different types of cookies and their functionalities is crucial for web developers and internet users. It allows developers to implement cookies effectively and responsibly while empowering users to make informed choices about their online privacy and data security.

How cookies work

When a user visits a website for the first time, the website sends a cookie to the user’s browser. The browser may then store the cookie and return it to the same server with later browser requests.

The cookie data contains details about the user’s visit, such as the web pages they have viewed, their browser’s history, and the items they have added to their shopping cart. The website can use this information to improve the user experience by remembering the user’s preferences or recommending products.

You can also make it so cookies track a user’s browsing activity across multiple websites. This information can be helpful for targeted advertising or other purposes.

Benefits of using cookies in ecommerce

Cookies play a vital role in e-commerce, providing a seamless and personalized shopping experience for online customers. These tiny pieces of data offer several advantages that significantly enhance the functionality and effectiveness of e-commerce websites.

Personalization

You can use cookies to personalize the shopping experience for each user, such as by remembering user preferences for language, currency, and shipping address.

You could also use them to recommend products based on a user’s browsing history. This can lead to increased customer satisfaction and loyalty.

Shopping cart retention

You can use cookies to keep track of the items in the user’s shopping cart, even if they leave the website without completing their purchase.

This can encourage users to return to the website and complete their purchase later.

User authentication

You can use cookies to authenticate and keep the user logged in to the website.

This can save users time and frustration by eliminating the need to enter their login credentials every time they visit the website.

Reduced bounce rates and increased conversion

Web cookies can help reduce bounce rates by improving user engagement and encouraging them to explore different pages even outside the website’s homepage.

They can also increase conversion rates by personalizing the shopping experience and making it easier for users to complete their purchases.

Analytics

You can use cookies to collect analytics data about user interaction and browsing habits. This information can be used to improve the website’s design, usability, and performance.

For example, you could use data from the user logs to see which pages are most popular, which products are most frequently viewed, and where users abandon their shopping carts.

Privacy concerns with cookies and how to address them

Although cookies can be a valuable tool for improving the user experience on ecommerce websites, they raise some privacy concerns.

Some of them are the following:

• Tracking cookies — Web cookies can track a user’s browsing activity across several user agents, like websites or apps. This information can be used to build a detailed profile of the user’s interests and online activity. Such a profile can be used to target the user with advertising or to track their movements online.

• Data breaches — If web servers are hacked, cookies could be stolen and used to gain unauthorized access to user accounts or other personal information.

• Malicious software — Cookies can distribute malware to users’ computers. For instance, cross-site scripting (XSS) is a security vulnerability where malicious scripts are injected into a trusted website by exploiting flaws.

There are several steps website owners can take to address the privacy concerns associated with using cookies:

• Opt-out options — Many websites offer users the option to opt out of being tracked by cookies. This option is typically found in the website’s privacy policy or cookie settings.

• Cookie policies — Websites should have a clear cookie policy explaining how they use cookies and what information is collected.

• PDPB compliance — Ecommerce sites that operate in Pakistan must comply with the Pakistan Data Protection Bill. The PDPB requires websites to obtain the consent of users before setting cookies. Different geographical regions operate under different regulations, for example, organisations in California, US operate under the California Consumer Privacy Act.

Steps website users can take to protect their privacy when using cookies include:

• Using a privacy-focused browser — Many browsers that are privacy-focused can help users manage cookies and privacy settings, like sharing third-party data.

• Deleting cookies regularly — Users can delete cookies already stored on their computers to protect their privacy and prevent websites from tracking their activity online.

• Using a virtual private network (VPN) — A VPN can help encrypt users’ internet traffic and make it more difficult for websites to track their activity online.

By adopting responsible cookie practices, e-commerce businesses can balance the benefits of cookies with the protection of user privacy, building trust, and maintaining a positive online reputation.

How to set up cookies in ecommerce platforms

Setting up cookies in an ecommerce platform involves implementing tools to store user information like login info and manage user data collected for various purposes, like tracking user behavior, personalization, analytics, and more.

To set up HTTP cookies in ecommerce platforms, you will need to do the following:

• Identify the cookies you want to use. There are several types of HTTP cookies, each with its specific purpose. The types of cookies you want to use will depend on the specific needs of your ecommerce platform.

• Configure your ecommerce platform to set the cookies. Most ecommerce platforms have built-in support for setting HTTP cookies. You can configure your ecommerce platform to set cookies in the platform’s settings or configuration file.

• Test your cookies. Once you have configured your ecommerce platform to set cookies, test to ensure the cookies are working correctly. You can do this by visiting your ecommerce website in a different browser or device and checking to see if the cookies are being set.

You can effectively set up HTTP cookies in your e-commerce platform, improving user experiences and personalizing interactions while respecting user privacy and adhering to relevant privacy regulations.

Best practices for using cookies in ecommerce

Clearly stating how your websites store information via cookie usage through comprehensive cookie policies can help users make informed choices about the data advertising companies share.

Here are some best practices for using cookies in ecommerce:

• Clear communication with users — Be transparent about how you use cookies and allow users to control their cookie settings. Display this information on your website, such as in the footer or a dedicated cookie policy page.

• Transparent data collection practices — Explain what information is collected by cookies and how it is used. You can include this information in your website’s privacy policy.

• Cookie expiration periods — Set a reasonable expiration date for cookies. The expiration period should be based on the purpose of the cookie. For example, a user session cookie should expire when the user closes their browser, while a persistent cookie may expire in less than a year.

• Secure cookies — Store cookies securely to protect them from unauthorized access. You can do this by encrypting cookies or storing them securely on the user’s device.

• Use of third-party cookies — Be careful about using third-party cookies, as they can track users across multiple websites. If you do use third-party cookies, be sure to disclose this to users and give them the option to opt-out.

When using HTTP cookies in an e-commerce environment, it’s crucial to follow best practices to enhance the user experience, improve marketing efforts, and ensure compliance with privacy regulations.

Common issues with cookies in ecommerce 

Like any technology, cookies can run into issues. Understanding and resolving these issues will help ensure a smooth and efficient shopping journey for your customers.

Some common problems with HTTP cookies in e-Commerce include:

• Cookies not being set correctly — This can happen if your ecommerce platform is not configured correctly or if there is a problem with your website’s code.

• Cookies not being read correctly — This can occur if the user’s browser is not configured correctly or if there is a problem with the user’s browser.

• Cookies being blocked — Some users may block cookies in their browser settings or address bar.

• Cookies being deleted — Users may delete cookies from their browser.

• Cookies being stolen — Cookies can be stolen by hackers if your website is not properly secured.

Troubleshooting issues in a timely and effective manner is essential for a successful e-Commerce store.

How to troubleshoot issues with your cookies

If you are experiencing problems with cookies in your ecommerce platform, there are a few things you can do to troubleshoot the issue.

• Check your ecommerce platform’s documentation — Ensure you have configured your ecommerce platform correctly to set cookies.

• Inspect your website’s code — If you use custom code to set cookies, ensure the code is correct.

• Check the user’s browser — Ask them to check their browser settings to ensure they are not blocking cookies. You can also ask them to clear the browser’s cookies or try a different browser.

• Advise users to keep their cookies enabled — Cookies are essential for the proper functioning of many websites, including ecommerce websites. Advise users to keep their cookies enabled to ensure the best user experience.

• Secure your website — Take steps to secure your website from hackers to prevent them from stealing cookies.

If you still have issues with HTTP cookies, you can contact your ecommerce platform’s support team for assistance.

Using cookies to track user behavior and optimize ecommerce websites for conversions

HTTP cookies can be used to track user behavior and optimize ecommerce websites for conversions in several ways.

Learn more about this below:

• Heat maps — These can visualize how users interact with your website. You can use heat maps to track where users click on your website, how long they spend on each web page, and where they abandon the checkout process.

• A/B testing — You can use A/B testing to test different versions of your product pages to see which one converts better. For example, you could try other product descriptions, images, or call-to-action buttons.

• Personalization — You can use cookies to personalize the user experience by tracking preferences and behavior. For example, you can use cookies to show users products they have viewed or recommend products they are likely interested in.

• Marketing — You can track users across multiple websites and target them with relevant advertising. For example, if a user visits your website and views a product, you could later show them an ad on another website.

Leveraging cookies effectively can provide valuable insights into user interactions, preferences, and pain points, allowing e-commerce businesses to tailor their strategies for maximum success.

Integrating HTTP cookies with other marketing tools and platforms

Marketing tools and platforms can integrate with cookies to improve the effectiveness of marketing campaigns and provide a more personalized experience for users.

For example, you can use cookies to:

• Track user behavior across multiple websites and target them with relevant advertising — Tools like Google Analytics integrate with HTTP cookies to track user behavior on websites. When a user visits a website that uses Google Analytics, a small piece of code called the Google Analytics tag is inserted into the website’s code.

• Track the performance of marketing campaigns — You can use cookies to track how many users click on your ads or how many users sign up for your email list.

• Optimize email marketing — You can use cookies to analyze which email links a user clicks on. This information can then be used to send the user more targeted emails in the future. For example, if a user clicks on a link to a product page in an email, you could later send them an email with a special offer on that product.

• Improve social media marketing — You can use cookies to target ads to users on social media platforms. For example, a company could use cookies to track which products a user has viewed on their website and then target ads for those products to the user on Facebook.

• Segment customers — You can use cookies to segment customers into different groups based on their demographics, interests, and purchase behavior. You can then use this information to create targeted marketing campaigns for each customer segment.

By seamlessly integrating HTTP cookies with your marketing tools and platforms, you can create a more personalized and effective marketing strategy. This will help you boost customer engagement, increase conversion rates, and maximize the impact of your marketing efforts.

Future trends in the HTTP cookie technology and their impact on ecommerce

HTTP cookies are a fundamental technology for ecommerce, but they also face several challenges, including privacy concerns and the rise of ad blockers. As a result, several new and emerging technologies are being developed to address these challenges and improve how cookies are used in ecommerce.

First party cookies

This is one of the most significant trends in HTTP cookie technology. First-party cookies are set by the website that the user is currently visiting. They are typically used for browser session management, personalization, and analytics.

First-party cookies are less likely to be blocked by ad blockers and may replace third-party cookies. Users are also less likely to perceive them as a privacy risk.

Consent-based cookies

Consent-based cookies are only set after the user has given their consent. This contrasts traditional cookies set automatically when a user visits a website. Users are more likely to accept them, and this can help improve the user experience.

Other technologies being developed to improve how cookies are used in e-Commerce include:

• Cookie banners — Cookie web banners are used to inform users about the cookies being used on a website and to give them the option to opt out of being tracked.

• Cookie consent management platforms — Cookie consent management platforms allow users to manage their cookie settings across all the websites.

• Cookie-less tracking — Cookie-less tracking is a new technology that will enable websites to track users without using cookies. This is achieved using other methods, such as device fingerprinting and browser fingerprinting.

These cookies are set only after users provide consent, respecting their privacy choices and building trust.