Direct-to-consumer (DTC) is a business model in which consumer brands sell products directly to consumers from their own warehouses. This differs from the business-to-consumer (B2C) model, in which a brand moves its products via a wholesaler or retailer.

The DTC model continues to gain traction.. According to Statista, DTC ecommerce sales for established brands and digitally native companies are expected to exceed $226 billion this year.

Yet changes in the economic, political, consumer, and digital landscapes over the past few years have reshaped the way consumers shop. DTC companies need to keep up or risk falling behind.

This article will discuss the nine recent DTC trends you need to know to take your ecommerce business to the next level.

Table of contents

1. Zero-party data reigns supreme despite consumers’ privacy concerns

Recent changes in iOS and third-party tracking, combined with consumers’ ever-increasing privacy concerns, make it significantly more challenging for brands to engage in traditional customer acquisition tactics—namely, tracking customers across social media platforms and retargeting ads.

But even as customers are wary about sharing personal data, they still demand personalized advertising and shopping experiences. Some 71% of consumers expect personalization as a standard of service, and over three-quarters become frustrated when these expectations are unmet.

“Personalization is no longer a ‘nice-to-have,’” says Lisa Oberst, director of email marketing at Fuel Made. “It's a must-have for brands to offer a customer experience that builds long-term relationships.”

But it’s a double-edged sword: for personalization to work, you need customer data. DTC brands are using creative ways to capture zero-party data (information customers share willingly). That includes:

Quizzes
Polls
Surveys

Jones Road Beauty does this well. The DTC makeup brand runs targeted TikTok ads, encouraging their audience to take an Octane AI beauty quiz.

The beauty quiz collects personal customer information to provide personalized recommendations. To see the personalized results and Jproduct recommendations, TikTok users are required to enter their email address.

\"Seven — Jones Road Beauty learns individual customer preferences with this quiz.

This strategy uses a wide and highly engaged audience, helps Jones Road capture highly relevant customer data, and allows them to build their audience on a platform they owns: their email list.

According to Octane AI, Jones Road Beauty’s quiz increased the DTC brand’s average order value from $60 to $90, with a conversion rate of 16%. It captured over 50,000 customer emails in one month alone, not to mention a wealth of customer data the brand could use for personalization—like each subscriber’s skin concerns, how they’d use the products, and so on.

2. Generative AI infiltrates the DTC shopping journey

In April of 2025, ChatGPT claimed the top spot as the most downloaded mobile app. It set the record as the fastest app to reach 100 million users (just two months), with 400 million people now consulting the technology at least once a week.

Now more than a tool to answer simple questions, AI has cemented itself as part of many consumers’ purchasing decisions. According to a recent report, 27) of online shoppers believe that AI can improve the shopping experience. Forty-one percent are likely to use an AI tool to research purchases—a number that rises to 50% among Gen Z consumers.

As a result, tools like ChatGPT have evolved beyond text-based conversations. They enrich the chat experience with product carousels that display product images, reviews, and direct lipurchase links. It’s a more personalized shopping experience that relies on a user’s previous discussions to recommend products. “If the user had previously indicated a dislike for clowns, the model might also consider that and leave out clown costumes,” OpenAI explains.

To capitalize on this DTC trend, work on increasing your AI visibility. That means:

\nBeing present in AI data sources: Your DTC website, Reddit, YouTube, product review sites, and media publications are all reference points for AI tools.
\nGathering reviews: Drive the narrative by encouraging happy customers to leave positive reviews—not just on your website, but also on review sites like Yelp, Trustpilot, and Google Business.
\nSyncing your product feeds: AI models look for consistency. Sync your product catalog with shopping channels like Facebook and Instagram, Google Shopping, and YouTube with Shopify app integrations.

💡Tip: Artificial intelligence may drive top-of-funnel product discovery, but online communities and brand loyalty keep people coming back directly. Invest in a customer loyalty program that incentivizes repeat purchases to bypass AI discussions in future purchasing decisions.

3. Forget uber-polished content—authenticity sells

The creator economy has grown to the tune of 50 million creators. And more consumers are purchasing online now than ever before, often making purchases based on the recommendations of friends, family, influencers, and even strangers.

“Personalized storytelling is the only thing that works from an advertising standpoint,” says Nik Sharma, CEO of Sharma Brands. “Ad platforms don’t know the exact intent level of a consumer to be able to match them with the right pairing of ad creative. As a result, storytelling that builds a relationship with a consumer on the other side is one of the only ways to continue scaling advertising.”

The rapid growth of DTC brands on TikTok is the perfect example of using personalized marketing and storytelling for customer acquisition.

For example, take a gander at Liquid Death’s TikTok and you’ll see comedy skit-style videos self-shot by customers. This creative storytelling seems to be working, considering this hip water brand has 7 million followers.

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@liquiddeath Liquid Death Rootbeer Wrath sparkling water: It’s clear! // repost from @Afferdin // #Liquiddeath #murderyourthirst #deathtoplastic ♬ original sound - Liquid Death
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DTC brands are following suit with personalized storytelling that captures new customers—not only on TikTok, but on Instagram, Facebook, Snapchat, and even DTC brands’ homepages. And in many cases, it’s not uber-polished or high-production branded videos that we see—it’s content produced by happy customers.

“One DTC trend is increasing the usage of UGCs with actual customers rather than manufacturing it from the brand,” says Jason Wong, founder of Pughaus.

“The topic of UGCs has been hot in the space and brands have largely tried to manufacture it themselves by paying creators. But, with the introduction of apps like Bounty, brands can get authentic UGC from their customers and compensate them fairly.”

4. Affiliate programs drive DTC growth

User-generated content is not the only reaction to shifting consumer values. As more consumers say they trust recommendations from people they know over branded content, it opens up a wide space for DTC brands to set up successful affiliate marketing programs.

Smart DTC brands are shifting their focus away from tired DTC marketing practices in favor of affiliate programs, which encourage happy customers to recommend products to their family and friends.

“Affiliate programs are becoming increasingly popular among savvy DTC brands looking for their next big growth channel,” says growth adviser Zach Grove. “The beauty of performance-based affiliates is that—unlike paid ad channels—you only pay per sale, at a set amount that you’ve agreed to.”

DTC children’s sleep brand Moonboon, for example, has an affiliate program with more than 300 creators across five European markets. These micro-influencers have driven over $1 million in affiliate sales, accounting for approximately 10% of their monthly net sales with an average ROI of 6.5x.

\"Registration — Moonboon’s affiliate program is powered by Shopify Collabs.

The secret to Moonboon’s success? Carefully selecting which creators are accepted into the affiliate program. When applicants apply through Shopify Collabs, they’re vetted based on their online content, social media engagement, and whether they align with the brand’s mission. Those who fit the bill get an invitation to join the program.

“Shopify Collabs has simplified profiling and signing of new creators,” says brand director Robert V. S. Preuss. “The intuitive dashboard gives us a seamless overview of the affiliate program and general sales tracking.

“We are crazy about the simplicity of the tool and work on the platform daily. It is an incredible tool that helps us grow and scale our tactical lower-funnel work with creators who are passionate about our brand and products.”

💡Tip: Scale your UGC program with the Shopify Collabs app. Source influencers, issue free samples, and track commission from your Shopify admin.

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5. DTC founders become in-house influencers

Influencer marketing still remains a lucrative marketing channel for direct-to-consumer brands. Three in four online consumers say they’ve purchased a product off the back of an influencer’s recommendation.

Paying an influencer to reach their audience through sponsored posts is the traditional way of facilitating these DTC partnerships. But modern creators are recognizing their influence—and in many cases, launching their own creator-led brands to capitalize on their audiences.

PRIME, the hydration drink brand founded by YouTubers KSI and Logan Paul, is just one example of this trend. The CPG brand boasts an eye-watering valuation of around $5.5 billion, with a single pack of energy drinks reselling for nearly $1,500 at the peak of its hype.

What does that mean for DTC brands that don’t have a creator spearheading their growth? One solution is to become a creator after the fact. Sharing behind-the-scenes content of founding or growing a company helps establish interpersonal customer relationships, as opposed to keeping your product as the sole focus of your DTC marketing campaigns.

Aimee Smale, founder of luxury fashion DTC brand Odd Muse, began documenting the process of starting the business on TikTok. She now has over 200,000 followers on her personal account. She credits this personal brand with playing a huge role in the success of her business.

“No one has my story and that’s what makes Odd Muse’s content so unique,” Aimee said in an interview with fellow creator/founder Grace Beverley. “A lot of fashion brands can use the same models and plan similar shoots—there can be a lot of crossovers. But if you’re using yourself, as a founder, and your story, no one has that.”

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@aimeesmalex SO crazy #oddmuse #asos #oddmuselondon #business #buying ♬ suono originale - Marta Rappa
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6. Inflation remains a top concern among buyers

As inflation rises, consumers are tightening their belts. Research from McKinsey shows rising prices are a major cause of concern for global consumers, and they’re changing their purchasing habits as a result. More than half now seek deals on every purchase, and a similar share plan to delay spending over the next three months.

“As the economy tightens, consumers will limit spending on things that don’t make them feel something or solve a real problem,” says Eli Weiss, senior director of CX and retention at Jones Road Beauty. “The days of dropshipping or Facebook ads arbitrage are over. It’s time to focus on customers and your brand.”

With inflation on the rise and consumers cutting back, what should a DTC brand that’s trying to grow do? Discounting might be the most obvious route forward. However, the long-term effects of continuous discounts can wreak havoc on brand perception and your product’s perceived value.

A more logical approach is a combination of:

\nDynamic pricing: Not all consumers are willing to pay the same price for a particular product. Dynamic pricing uses AI to digest large datasets—such as emerging trends, sales data, and supply chain trends—to find the optimal price each individual shopper will pay in real time.
\nSmaller product sizes: More affordable versions of popular products can lower the barrier to trial. For example, customers might get a seven-day box of your bestselling supplements instead of the full-size box of 28. This can hook new customers in with a lower financial commitment. They can upgrade once they see the value firsthand.
\nCommunity-driven offers: Instead of blanket discounting, reserve your best deals for repeat customers, who are more profitable by default. Lower customer acquisition costs for loyal buyers means greater profit margins and more wiggle room for discounts.

7. Customization and exclusivity drive DTC sales

The lure of bulk orders and tapping into an established customer base can lead many DTC brands to expand into wholesale. Legacy DTC native brands now sell their products through marketplaces and resellers, like Glossier, whose products you can now buy from beauty department store Sephora.

Yet selling directly to the consumer offers several advantages over wholesale, including:

Full control of the product, pricing, and customer experience

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Direct access to customer data for personalized marketing and retargeting

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Higher profit margins by eliminating intermediaries

Selling both DTC and wholesale offers the best of both worlds.

To double down on the benefits that DTC offers, brands are leaning into customization and exclusivity. Almost 30% of shoppers purchase directly to discover exclusive products. In another survey, most age groups said they appreciate being able to customize products to their needs.

For example, Omy Laboratories, offers personalized skincare products. Unlike the one-size-fits-all serums and moisturizers that customers can find in any beauty department store, Omy custom-formulates their products based on each shopper’s answers to a virtual skincare consultation. The result? Some 95% of their sales come from DTC ecommerce.

\"Landing — Omy Laboratories sells personalized skincare products.

8. Buy now, pay later (BNPL) spending soars

While it’s true consumers are cutting back their spending in the face of inflation, they are still making purchases. To ease costs for consumers, many online retailers and DTC brands are offering BNPL through payment options like Shop Pay Installments, Affirm, Sezzle, and AfterPay.

BNPL is an option that seems to be resonating well with consumers. Holiday shoppers spent $686.3 million on BNPL purchases during last year’s Black Friday Cyber Monday weekend (up 8.8% from the year before). In fact, the payment method has proven so popular that by 2028, an estimated 30% of the world’s population—over 86.5 million people—will utilize BNPL.

Thankfully, this DTC trend is easier to lean into than others. Shopify’s native BNPL solution, Shop Pay Installments, comes as part of the world’s best-converting checkout—no extra coding or integrations required.

Customers can opt to break larger purchases down into biweekly or monthly interest-free payments with no impact on their credit scores. Meanwhile, you still get paid upfront while Shopify handles the split payments.

\"What other system allows you to enable people to make installments seamlessly?” says Tyler Medina, head of marketing at Backyard Butchers. “When they already have a Shop account or they're seeing a Shopify terminal and we're using Shop Pay, that level of comfort for the customer that wants to partake in something like that is pretty high.”

\"Product — Enable BNPL with Shop Pay Installments.

9. Gen Z takes the driver’s seat in DTC ecommerce

Millennials no longer drive the bulk of DTC purchases. Their younger counterparts, Gen Z, are in the driver’s seat. And their purchasing habits are vastly different from generations prior:

\nThey’re digital natives. Gen Z were one of the first generations to grow up with the internet. They had smartphones in high school and now account for 25% of all social media users in the United States. As a result, they’re more open to buying directly from brands.
\nThey have more discretionary income. The average 25-year-old Gen Z consumer has a household income of $40,000, which McKinsey reports is 50% higher than the average baby boomer’s typical income at the same age.
\nThey’ll pay for convenience. Despite Gen Z consumers being less optimistic about inflation stabilizing, they prioritize spending—often paying a premium for convenience. This generation uses grocery and food delivery services more often than any other demographic.

In other words: Gen Z has money to spend, and they’ll splash the cash on experiences that are convenient and share-worthy.

DTC brands like Starface are leaning into this with viral products that help Gen Zers showcase their self-expression. While prior generations might want to disguise their pimples, Gen Z wants to make them an accessory.

“There are such strong skincare brands out there,” explains Kara Brothers, president of Starface, in a Shopify Masters episode. “Of course there's several, and it's only getting more crowded day by day. But we feel and felt that there is an opportunity for something that speaks directly to our Gen Z consumer. They're very into self-expression. They love to have fun. They pride themselves on self-expression.”

Starface’s DTC strategy leans into pimple stickers as a fashion accessory—even recruiting Gen Z influencers to post photos of themselves wearing the patches, then reposting this content to the brand’s own Instagram account with very Gen Z-esque captions:

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Stay on top of these DTC trends in 2025

The DTC business model is booming. It’s an excellent way to grow a business in today’s digital world. However, it’s also important to remember that DTC trends change with the winds. The tried-and-tested strategies of the last decade no longer remain the most effective way to operate a DTC business.

In 2025 and beyond, it’s authenticity that sells—even in light of inflation concerns, artificial intelligence, and rising costs impacting consumer behavior. Focus on creating experiences that customers can’t get elsewhere, sharing behind the scenes of what it’s like to run your business, and incentivizing word-of-mouth referrals with an affiliate program to succeed.

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","excerpt","DTC trends have evolved. Read what the top DTC experts and latest reports are saying about the most recent trends in this article.","excerptHtml","

DTC trends have evolved. Read what the top DTC experts and latest reports are saying about the most recent trends in this article.

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When a customer buys your product because of an ad they saw, something went right. Your shop was in the right place at the right time. Or, in 21st-century terms, your shop was on the right device at the right time.

There’s just one problem with replicating this success: What if there are multiple right places to find your customers? Multiple right times?

Welcome to the world of cross-device ad targeting.

According to Think With Google, it’s not often accurate to think of customers as strictly offline or online. Customers most often use multiple channels before buying. For an average purchase, a customer may use several touchpoints across multiple channels.

That leaves us with one question: How can you create a consistent advertising experience for customers when those customers aren’t taking one road to the purchase? You can find the answer in cross-device ad targeting.

Table of contents

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What is cross-device ad targeting?

Cross-device ad targeting recognizes one person behind multiple screens and serves a coordinated ad sequence to that individual, not each device separately.

The average global consumer already juggles 3.6 devices, and in the US, the average person owned 13 connected devices as of 2023. And the shopping experience happens on so many surfaces:

Desktops and laptops
Connected TVs and streaming ads
Mobile web
In-podcast ads
In-app mobile, such as social media ads
Email newsletters
Smart speaker ads

Imagine a shopper who checks Instagram on her phone at breakfast, researches reviews on a work laptop, watches YouTube on a smart TV after dinner, and finally completes the purchase from a tablet on the couch.

With cross-device targeting, you can:

Cap impressions at the person level to avoid fatigue.
Tell a story (from awareness to consideration to offer) no matter which screen they are on.
Attribute every touch to the final sale for a true view of your return on ad spend (ROAS).

We know the trends are pointing toward customers using multiple various devices. The question is, does that translate to success when brands use cross-device ad targeting?

L'AMARUE used Shopify Audiences to find new buyers within weeks after experiencing a sharp decline in accurate audience targeting. It helped them navigate the shift in digital media, resulting in a 48% uptick in click-through rate and a 2.5x return on ad spend.

Tracking in cross-device targeting

Shoppers will bounce from phone to laptop and beyond. To deliver a fluent ad journey, you have to know it's the same person behind every screen. This is called identity resolution, and it happens through two methods:

\nDeterministic tracking: When you match signals with unique characteristics for an individual, like email addresses, loyalty card numbers, OAuth logins, and other first-party data. These identifiers come from the user, and their accuracy is nearly 100%.
\nProbabilistic tracking: When a machine learning model infers that two devices belong to the same person based on IP address, device type, and browser plugins. It helps fill the gap for users who browse anonymously.

\"Logged-in — Logged-in deterministic matching. *ResearchGate*

A modern ad approach combines these two to create a hybrid graph. Solutions like Shopify do exactly this by helping you build unified customer profiles and target lookalike users through Shopify Audiences.

Google’s on-again, off-again plan to retire third-party cookies in Chrome (most recently paused in 2025) means marketers can’t rely on cookies alone. The way forward uses deterministic first-party IDs (like Shopify’s unified profiles), then layers in a reputable identity-graph partner to extend reach.

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Device graph vs. identity graph

Deterministic and probabilistic signals are only half the story. How you stitch them together decides whether you deliver a precise, personalized ad, or a generalized device-level one. It comes down to whether the framework you use is a legacy device graph or a modern identity graph.

Think of the difference like a Scooby-Doo episode. A device graph follows scattered footprints, while an identity graph yanks off the mask and reveals it's the same villain—or shopper—every time.

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	Device graph	Identity graph
Primary signals	Third-party cookies, mobile ad IDs, device fingerprints	Deterministic IDs (hashed email, Shopify customer ID, loyalty #)
Resolution level	Device-level (ties actions to a browser or handset)	Person / household-level (all devices mapped to one human)
Accuracy	Less accurate as browsers block key IDs	Highly accurate
Best uses	Basic retargeting, device-level frequency capping	Sequential storytelling, omnichannel attribution, personalized offers
Future potential	Shrinking as cookie pools dry up	Thriving as it's built on first-party data

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Why the device graph is fading

Device graphs were designed for a cookie-centric internet. As browsers block third-party cookies, the match quality becomes worse. Google’s latest reversal left cookies active, but under user-choice controls, none of which restores lost signal quality.

Why the identity graph wins

Identity graphs cluster every deterministic ID you already have in your customer profiles, and widen reach with privacy-safe lookalike devices. One email at checkout, a Shop Pay tap in-store, or a newsletter signup instantly updates a first-party profile you own.

Kate Hewko upgraded to Shopify Plus to leverage Shopify Audiences' ability to find new customers and eliminate guesswork in ad attribution. During a three-week campaign, Shopify Audiences outperformed other audiences significantly, achieving a 45% higher ROAS and 8% lower cost per acquisition.

💡 Read Kate Hewko’s story

How to do cross-device ad targeting

1. Map the customer journey

List out every paid, owned, and earned touchpoint where shoppers appear. It could be a Google Shopping ad, QR code in-store, post-purchase email, loyalty program, etc.

\"Chart — Example of a retail customer journey map.

Shopify’s unified data model makes it easy to collect and house this information in a centralized operating system. Inventory, order, and customer data flow back to the same dashboard, no matter where you sell, to give a complete 360-degree view of your customer.

Turn every high-intent touchpoint into an ID event. For example:

Encourage Shop Pay login or customer account sign-in.
Prompt for email and phone number at your POS.
Embed opt-in forms on your website.

You can also add customer tags that use programmatic automations to trigger after a specific action or a defined event, like a customer signing up to your shop. This creates specific user IDs. Used in conjunction with unique landing pages for different devices, you can gauge your conversion rates on each.

If you’re using Shopify analytics, apply multiple levels of filters to get more specific views of your customers. It’s more of an art than a science, but it will help you better understand the full customer experience, and where they’re coming from.

2. Recognize user devices

Use an identity solution to collect public IDs that ad platforms already read. This will help you recognize a phone, laptop, or TV the minute it requests an ad.

Some examples include:

Universal IDs (UID2, RampID)
Mobile ad IDs (MAIDs)
CTV or smart TV logins
Third-party cookies

3. Merge the two sets of data in an identity graph

Upload your first-party data to a trusted graph partner like OnAudience, LiveRamp, or The Trade Desk. The company can link each persona’s private ID from Step 1 to the device IDs in Step 2, giving you one record that says “this person equals these seven screens.”

4. Push the list to your ad tech stack

Export the matched audience to your DSP, social network, or CTV partner. Now, you can run sequenced creative from TV to mobile to desktop, and attribute the final sale back to every touch in Shopify.

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The advantages of cross-device ad targeting

Cross-device ad targeting engages people the way people engage with the world—through multiple connected devices. But how does it specifically offer advantages over more conventional, single-device strategies?

Higher engagement

One reason to employ cross-device marketing is that consumers, including millennials, already work this way. According to Aimee Blakemore, marketing manager at Flourish, “Conversion rates from users who have used multiple devices before landing on the website are 230% higher compared to average.”

From a customer’s perspective, ad engagement across multiple devices should be a seamless experience. They might learn about a product on social media as they browse their phone. Then they save the ad to an app, browse it later, and sign up for an email newsletter for the discount.

Later, when surfing on a laptop at a coffee shop, maybe they have the free time to use the discount code and make the purchase.

Market timing

Getting a customer to think about a purchase might work well at a specific time of day—when a customer is more likely to have their wallet out. If a customer is on mobile at that point of the day instead of desktop, a single-device ad campaign won’t cut it.

A cross-device ad targeting campaign can help businesses learn what the ideal timing is in the first place. For example, if you discover that mobile ads are ideal for top-of-funnel actions like subscribing to a newsletter, but not for conversions, that can help you in future campaigns. Ditto if you discover that newsletter coupon codes generate higher conversions than your desktop ads.

Tracking ad spend and ROAS

Big companies are cracking down on third-party cookie tracking. Rather than planting cookies in ads to follow customers across the web, ecommerce marketers will have to think more about the first-party data points they gather from direct analytics. Cross-device ad targeting casts a wider net for your data, showing you which devices are driving high engagement, without the use of cookies.

ROAS, or return on ad spend, is equivalent to return on investment (ROI) for your marketing dollar. Using cross-device tracking to measure this core metric helps you gauge which channels are most profitable.

There’s one caveat: you can’t identify the best devices for ROAS until you have a handle on your analytics. And to know what channels are converting and not converting, you need to have accurate multichannel attribution in place.

The good news is that once you do, it shouldn’t be long until you can figure out which ads on which devices are your top performers.

Examples of cross-device ad targeting

It’s one thing to talk about cross-device ad targeting, but what does it look like in practice? Below, we’ve explored some of the brands already using cross-device marketing to target their potential customers.

Red Dress Boutique

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When Red Dress Boutique attempted a replatforming from Magento to Shopify, there was a lot of testing to be done. One of the most surprising results of these tests was finding just how much of the shop didn’t work across multiple devices.

Before advertising on multiple devices, Red Dress Boutique had to address these issues. For instance, the menu wasn’t working for certain devices and browsers. And the boutique had to finally add a View Cart button for their desktop “Shop the Look” feature.

The results were cross-device success. Red Dress Boutique exists online, in person, and on social media influencers’ pages. And during the replatforming to Shopify, they used the opportunity to address any holes in their cross-device strategies.

Emma Bridgewater

$\"\"$

It’s not that the Emma Bridgwater story is that unique—the brand had an antiquated platform, and decided to add mobile ads and capabilities into the mix. But it was what Emma Bridgewater did behind the scenes that made their transformation remarkable.

It wasn’t just advertising: Emma Bridgewater built a new platform from top down, ensuring their images looked fresh on mobile and that they could sell in four major currencies, and updated their checkout processes for customers who wanted to finish an order on their smartphones.

The results were a 32% increase in mobile users and a 13% increase in mobile revenue after the update.

Making cross-device ad targeting work

For the customer, a cross-device ad targeting strategy is almost invisible. Behind the scenes, it takes some strategizing to make it work. But the result is always the same: reeling in more customers and creating a consistent brand experience that keeps people visiting.

Want to learn more about how Shopify can supercharge your enterprise ecommerce experiences?

Talk to our sales team today

\nTalk to our sales team today.\n

Cross-device advertising FAQ

\n\n

What is cross-device advertising?

Cross-device advertising is marketing aimed at creating a consistent message out to customers, no matter what device they’re using. The goal is typically to engage customers at multiple touchpoints, consistent with an omnichannel strategy, and drive customers to your ecommerce store. The approach can pay dividends in yielding new customer data and insights, and improving return on ad spend (ROAS).

\n\n

Why do I need cross-device advertising?

Shoppers are increasingly cross-device customers. With desktop computers, smart speakers, TV sets, and streaming services in the mix, people are exposed to all sorts of digital advertising. Cross-device advertising builds consistency with customers across devices—or targets specific ones that best suit your marketing budget.

\n\n

What are the advantages of cross-device advertising?

It drives high engagement, reaches more of your target audience, and gives you access to data about where and when customers convert. This enables you to better understand your core customers and optimize your marketing strategies.

\n\n

What are the key obstacles to overcome in cross-device advertising?

Understanding context across devices, managing deterministic vs. probabilistic data, and avoiding ad fatigue from repetition are major challenges. Missteps can lower ROAS. However, with thoughtful targeting—like cart abandonment alerts—cross-device strategies can be highly effective.

\n\n

What if my current ad targeting is already working?

If it’s working, keep going! But remain flexible—what works today may not tomorrow. Cross-device targeting is a low-risk exploratory strategy to test new channels and discover the best combination to drive conversions.

\n\n

\n","Cross-device ad targeting creates a consistent brand message no matter where your customers are finding your shop. Here’s how to use it—along with obstacles to avoid.","

Cross-device ad targeting creates a consistent brand message no matter where your customers are finding your shop. Here’s how to use it—along with obstacles to avoid.

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It's not what you know, but who you know. That quote is supposed to be about networking—but it's even more important to know who's converting at your ecommerce shop.

The problem? It's challenging to know who's doing what when we live in a multichannel world. Shoppers now zig‑zag between social media, email, and marketplace listings before ever reaching checkout. That reality has made digital marketing attribution a board‑level priority for every growth team.

According to Nielsen's 2024 Annual Marketing Report, 72% of global marketers expect bigger ad budgets this year, yet only 38% feel confident they can measure ROI holistically across traditional and digital channels—proof that attribution remains a critical gap.

Enter multichannel attribution. Multichannel attribution refers to the data and analytics you use to measure your marketing success. More specifically, it addresses who your customers are and where they came from using metrics that are relevant to your programs.

Did they buy your product because they saw it on Facebook ads? What if they dropped out of a cart, received an abandoned cart email, and then finally made the purchase? To what do you attribute that purchase?

Answering these questions is complicated. But it's also rewarding. With multichannel attribution strategies in place, you'll know where your future ad dollars need to go to generate the highest possible ROI for your shop.

Table of contents

Multichannel attribution definition

Multichannel attribution means tracking your conversion analytics and determining which marketing channels in a customer journey lead to a sale. The result is a clearer focus, so your marketing efforts line up with what customers actually do, not what you assume they do.

There are generally two types of attribution in analytics:

\nSingle-touch attribution: Imagine a customer seeing a Facebook ad you've placed. They visit your store and click \"Buy,\" but never finish the checkout process. They later get a cart-reminder email that encourages them to finish. This type of attribution would view that sale as coming from a single channel, rather than as a multi-touchpoint event.
\nMulti-touch attribution. Multi-touch attribution adds more context. In the example above, the credit of the conversion would go to both Facebook ads and abandoned cart emails.

💡 Unified commerce is the prerequisite. Data silos are the silent killer of attribution: when online orders live in one database and in‑store receipts in another, every report is missing half the story. A single data view lets you understand the entire customer journey, from the first click to the receipt.

A unified commerce solution collapses those silos into a single customer record, giving marketers one trusted view of the journey, and the confidence to invest where it matters.

Why does an ecommerce store need multichannel attribution?

Multichannel attribution lets businesses track which marketing channels drive customer acquisition by consolidating data from all customer touchpoints in one centralized location. A comprehensive picture illustrates how channels work together, so you can allocate marketing budget effectively. Mapping all those different touchpoints is the only way to see what really moves a prospect toward the cart.

Without seeing the full picture, businesses may invest too much money in channels that appear to directly drive sales on their own, while cutting budgets for channels that initially introduce customers to the brand at the start of the journey.

A unified approach to data also helps you understand how customers shop, and helps you identify problems in the buying process. By consolidating all customer information, every department operates with the same data, provides more personalized shopping experiences for customers, and reduces costs.

This allows marketers to make decisions that enhance both customer satisfaction and marketing outcomes across all digital channels. That transparency fuels faster, data‑driven decisions about budget and creativity.

Types of multichannel attribution

Types of attribution go beyond single-touch and multi-touch analysis. Choosing the right multichannel attribution model is a strategic lever, not a technical footnote.

Single-touch attribution models

This is the simplest form of all marketing attribution models because it credits one channel for each purchase. But you can still break it up into different strategies depending on how you want to weigh your attribution.

$\"\"$

First-click attribution: This is the simplest form of attribution. Whatever generated the customer's first click gets credited with the conversion. This is true no matter how many channels the customer visits between the first click and completing their order. In other words, the first interaction wins 100% of the credit.

$\"\"$

Last-click attribution: The same as above, but reversed. What was the final channel that pushed the customer to the order page?

$\"\"$

Last non-direct click attribution: Let's say a customer clicked around your website a little bit before making a purchase. What was the last touchpointbefore their purchase? Under this last-touch attribution model, that's the click that will get the credit. Everything after that first touchpoint is ignored in this single‑touch view.

Multitouch attribution models

You might have guessed by now that multitouch attribution models tend to be more accurate. After all, if a customer finds you on Facebook, reads your blog, and decides they love your company, shouldn't both the blog and the Facebook ad get credit?

Here are some of the multitouch attribution models that you might incorporate:

Linear attribution: Someone clicks on an Instagram ad, which takes them to a newsletter signup page, which sends them an email, which results in a purchase. What channel made the sale? Under linear attribution, you would assign equal credit to each one, or 33% of a conversion for each.

$\"\"$

Last-channel attribution: Similar to last-click attribution, this attribution model disproportionately awards credit to the last channel a customer visited before a purchase. The difference? You would share some attribution with the initial reasons a customer clicked.

$\"\"$

Time-delay or time-decay attribution: We've previously written about delayed attribution during seasonal promotional events. The time-decay model of attribution adjusts how much a channel is credited for a conversion depending on how much time passes between the contact and when the sale goes through.

Getting started with multichannel attribution

Setting up your custom attribution model typically involves three key steps: choosing your attribution style, configuring your analytics, and testing and analyzing your data.

Step 1. Audit data readiness

Make sure every channel (ads, email, POS, marketplaces) pushes UTM parameters or equivalent identifiers into Shopify Analytics. Confirm that Facebook Pixel, Google Ads conversion tags, and any influencer‑specific discount codes are firing correctly.

Document a naming convention for UTMs (e.g., utm_source, utm_medium, utm_campaign) and enforce it via templates in Google Tag Manager so internal teams can't deviate. This prevents dirty data that later skews model outputs.

Step 2. Choose an attribution window

Most DTC brands choose seven‑day click plus one‑day view for prospecting, and 30‑day click for high‑AOV products. Shorten or lengthen the window only after you've reviewed payback‑period data.

List every pre‑purchase touchpoint—organic social, SMS flows, on‑site quizzes, in‑store QR codes—and assign each a unique event ID in Shopify's Admin or via Shopify Pixels. This creates a one‑to‑one match between behavior and attribution later.

Step 3. Pick an attribution window

In Google Analytics 4 (GA4), start with cross‑channel position‑based attribution, or data‑driven attribution if you have enough volume. In ShopifyQL Notebooks, duplicate the prebuilt \"Attribution by Channel\" query and adjust weights to mirror your GA4 settings.

Turn on Shopify's Customer events so Safari and iOS browsers don't strip tracking. This single toggle can recover 10%–15% of \"lost\" conversions.

Step 4. Layer post-purchase surveys

Tools like Zigpoll or Fairing embed a one‑click survey on the order‑status page. Push responses back into the customer record so you can compare qualitative answers to quantitative model results.

Step 5. Create a dashboard

Combine Shopify first‑party events, GA4 conversions, and ad‑platform data in a business intelligence (BI) tool (e.g., Looker Studio or Power BI) or inside ShopifyQL Notebooks. This prevents finance, merchandising, and growth from debating whose numbers are \"right.\"

Step 6. Run a pilot and iterate

Lock budgets, channels, and creative for one month, then shift marketing spend according to the top‑three drivers surfaced by your model.

Put a recurring calendar invite every 90 days to revisit model choice, attribution windows, and new channels (e.g., Threads, Snapchat Spotlight) so your framework evolves with consumer behavior.

Common challenges with multichannel attribution

Of course, multichannel attribution is not without its challenges. Chief among them is dirty or incomplete attribution data. These are some of the most common challenges associated with trying to attribute across multiple channels.

Multi‑touch models are too complex

Shopify's channel‑agnostic events feed into prebuilt dashboards—no SQL required—so growth teams can switch between first‑click, position‑based, or data‑driven models in two clicks. That clarity shows the team, in plain language, how attribution works day to day.

Data silos and the middleware tax

Legacy stacks glue together ecommerce, POS, and ERP with costly middleware. Every extra connector is one more place attribution can break, and one more line item on the tech budget.

A 2025 independent study found retailers running both ecommerce and POS on Shopify see 22% lower total cost of ownership versus fragmented alternatives, precisely because data flows through a single platform.

New data regulations

In the far-off age of third-party data collection, it was once possible to follow customers around online.

Not so anymore. The new rules of data privacy require using first-party data to figure out what your visitors are doing… based solely on consensual customer interactions..

Offline sales can't be tracked

If the goal of multichannel attribution is to generate a more complete picture of which channels are converting, you can't afford to leave any out. So what happens to offline attributions, like if an ecommerce shopper mentioned your store to someone else in person?

One step is to use customer surveys to fill in these gaps. Set up Zigpoll or SurveyMonkey to collect data after purchases. You can use the questions to target the specific channels you haven't been able to set up with multichannel attribution, especially conversions with first touches that happened offline.

How Shopify helps with multichannel attribution

Shopify's commerce operating system (COS) writes every interaction—a Shop Pay checkout, a POS purchase, a marketplace refund—to the same customer ID. Merchants like Bared Footwear report that this consolidation slashes integration headaches and frees budget for growth initiatives. The net result: cleaner data, faster campaign pivots, and attribution models that finally see the whole picture.

At the counter, customer receipt selection turns a mundane card swipe into an attribution event. The POS matches the payment token to the shopper's 100 million-user Shop Pay network ID in real time, appending lifetime value, online browsing history, and email opt-ins to the profile—no QR codes or loyalty cards are required. Offline \"black holes\" disappear, and marketers can retarget store buyers within hours.

Shopify Audiences pools anonymized purchase signals across thousands of Plus merchants to build high‑intent lookalike lists. Early adopters cut customer acquisition costs by up to 50% and exclude 40% more existing customers from prospecting campaigns, results that flow straight into the same attribution dashboards you already use.

Multichannel attribution FAQ

\n\n

What is multichannel attribution?

Multichannel attribution is the assignment of conversions to customers based on specific acquisition points. That's points, plural. Using multichannel attribution, you can credit purchases to different channels in your sales cycle, such as 40% Facebook ads, 40% abandoned cart email, and 20% newsletter content.

\n\n

Why should I use multichannel attribution?

If you use omnichannel marketing, multichannel attribution is the only way you can accurately gauge what's converting your customers. Given that so many customers use multiple channels before buying a product these days, multichannel attribution gives you a more thorough understanding of your customer data.

\n\n

What are the advantages of multichannel attribution?

Improving accuracy is the key here. But the benefits of increased accuracy when measuring your conversion value can extend far beyond marketing analytics. Many companies find that they increase their return on ad spend (ROAS) once they've properly configured their analytics.

\n\n

How do I know if I need multichannel attribution?

Using omnichannel marketing strategies may require multichannel attribution if you want to make sense of your conversion data. Check your ecommerce data analytics for signs that your conversion data is out of sync with your marketing activities and spending. Simply put, if your data isn't up to snuff and it's leaving you guessing where you should spend your next ad dollar, you may need to embrace multichannel attribution.

\n\n

What are the types of multichannel attribution?

Within multichannel attribution, there are a few strategies you can adopt, depending on how you think you should weigh each conversion. Here are a few:

\nLinear: Takes every channel involved in a customer's unique journey and divides the credit for the conversion equally.
\nPosition-based: Might award 40% each to the first and last interactions, then divide the rest between channels in the middle.
\nTime decay: Prioritizes touchpoints that happened closer to the conversion.

The linear attribution model gives equal weight to all channels involved, while other strategies give more weight to specific points in the customer conversion path.

\n\n

What key steps should I take for multichannel attribution?

Configure your existing data analytics to handle multichannel attribution with your chosen formula. For example, Google Analytics might be set to single attribution if you don't configure the attribution model you want to use.

\n\n

","Learn how multichannel attribution helps ecommerce stores track customer journeys across platforms. Discover strategies to optimize your marketing ROI.","

Learn how multichannel attribution helps ecommerce stores track customer journeys across platforms. Discover strategies to optimize your marketing ROI.

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Online shopping is booming, and so are shipping problems. McKinsey reports that we sent over 100 billion packages in 2020, and that number could double by 2030.

This simple fact creates a big challenge for retailers: more packages mean more chances for things to go wrong. Every damaged package, every lost shipment, and every stolen delivery represents a direct hit to the bottom line.

Here's how retailers are protecting their profits as shipping volumes soar.

Table of contents

Find the fastest, most cost-effective 3PL partner for your business needs

Find the right 3PL to scale your business

\nDownload the 3PL checklist\n

Why do items get damaged during shipping?

There are several reasons why packages might get damaged. Here's a deeper look into the most common reasons for damaged packages.

1. Improper or ill-fitting packaging

Ecommerce teams often default to one or two \"standard\" box sizes. That could mean extra void space and a spike in breakage when heavy items slide around in transit. Right‑sizing cartons—and using inserts that lock the item in place—reduces breakage rates and dimensional‑weight surcharges.

Void fill that's too thin (or missing altogether) leaves fragile parts exposed to vibration and impact. Air pillows, bubble wrap, molded pulp, and kraft‑paper dunnage should create a snug \"nest\" on all sides of the product.

2. Poorly labeled packages

The way you carry a baby is different from the way you carry a toddler, which is different from the way you carry a sack of potatoes. When people who deliver packages know what is inside, they are more likely to handle them with care.

Clear \"Fragile,\" \"This Side Up,\" or orientation arrows prompt drivers and sorters to stack and carry with care, lowering corner crush and drop damage.

Even the best box can fail if it's hurled down a chute or stacked under heavy freight. Shock and tilt indicators—combined with photo documentation of pre‑shipment condition—help assign liability and encourage gentler treatment.

3. Water or humidity damage

A shipment that leaves a dry mountain warehouse may finish its journey in a humid coastal climate. Condensation, rain, or snow can warp cardboard and ruin sensitive goods. Moisture‑barrier films, laminated corrugate, desiccant packs, and reinforced tape keep water out.

Extreme heat or cold can crack plastics, melt cosmetics, or trigger condensation inside electronics. Seasonal packaging—insulated liners, cold packs, or breathable vents—prevents thermal shock and keeps products within their safe temperature range.

4. Theft

Packages left unattended are vulnerable to porch theft, while high‑value items can disappear within the carrier network. Signature‑required delivery, local pickup points, real‑time SMS alerts, and discreet outer packaging reduce loss rates and costly reshipments.

5. Pest invasion

Bugs or mice can get into shipments, especially bulk foods, pet items, textiles, and paper products, when cargo sits too long in hot, damp warehouses or shipping containers.

Once they get in, these pests damage cardboard boxes, make products dirty, and cause expensive disposal costs or product recalls.

Seven ways to prevent shipping damages

The best way to deal with damaged packages is to avoid them in the first place. Here's a closer look at how brands are working to prevent ecommerce shipping damages.

1. Run routine drop and vibration tests

Even the sturdiest‑looking carton can fail when it meets a conveyor junction or van floor. A systematic drop‑ and vibration-testing program spot‑checks packages before damage shows up in customer photos, and costs far less than a wave of returns.

Pick at least one item from each weight/fragility tier (e.g., lightweight apparel, midweight cosmetics, and heavy electronics). Aim for three to five SKUs per quarter, more if you introduce new packaging.

2. Use the right packaging

Different products require different kinds of packaging. If you're selling t-shirts, you can get away with shipping them in a loose envelope or mailer. If you're selling a desk with a glass top, you need packaging that will secure the desk, protect the glass, and fit the box.

$\"\"$

\"There is no way to avoid shipping damages and lost packages entirely, but it can be minimized through proper packaging and good customer service handling,\" says Chad Brinkle, founder of High Country Off-Road.

\"The best way to protect your products from shipping damages and lost packages is using packaging supplies that are sturdy enough to handle the shipment process. Packaging supplies like bubble wrap, foam sheets, and air pillows are a good starting point.\"

3. Improve communication

Preventing damaged packages is one part of the equation for ensuring orders get to customers intact. But another huge piece of the puzzle is finding ways to reduce lost and stolen packages.

Chad Brinkle suggested hiring a shipping company you trust, and having clear communication with the company on expectations. \"Before placing an order, it is important to discuss it with the shipping company. This way, you can determine what it takes to ship the product and what will happen if something goes wrong,\" says Chad.

Combat stolen items by sending up-to-the-minute shipping and delivery communications. Ideally, set up SMS, so the customer sees the notification and scoops up the package ASAP.

There are several order-notification apps that integrate well with Shopify. These apps will help protect your shipments, inform your customers of deliveries, and lower costs from potential damages or theft.

4. Track and insure your packages

It's challenging to know what went wrong in the shipping and logistics cycle if you don't track your packages.

Ben Rollins, cofounder of Axon Optics, says, \"Once you've shipped your products, track them so you can keep an eye on their whereabouts. This way, you can quickly resolve any delays or issues with your shipment.\"

There are also times when things go wrong and a shipping disaster is out of your hands. For this, there's insurance. \"Shipping insurance can help you recoup the costs of any damaged or lost packages. This is a great option to have if you're shipping high-value items,\" says Ben.

With Shopify Shipping, you can access both comprehensive tracking tools and up to $200 of embedded insurance on every shipment, giving you peace of mind and protection for your business as your packages make their journey to customers.

$\"\"$

5. Provide robust delivery options

Packing your products yourself and shipping them through the mail aren't your only delivery options.

If your store only operates online, consider a local delivery system. Local delivery is a stellar way to personalize delivery experiences to the needs of customers in your region. You can also build relationships with local delivery services and set expectations.

6. Partner with a great shipping company

Even if you're a small ecommerce brand, it's essential to partner with a shipping and logistics company that has its processes ironed out. If you're a bigger ecommerce company or an enterprise, partnering with a 3PL company is essential.

\"Choosing a reputable and reliable shipping company reduces the risk of damage to your packages. Their staff members are trained to handle packages properly, and they have the resources to get your parcels delivered safely and on time, without risking mishandling fragile packages,\" says Ben from Axon Optics.

Services like Shopify Fulfillment Network make it easy to connect with trusted logistics partners such as Flexport, enabling you to ship anywhere, save time, and accelerate business growth. These partnerships give you access to a vast network of distribution hubs and fulfillment centers strategically positioned for nationwide coverage.

$\"\"$

With the right fulfillment partner, you can offer customers competitive delivery speeds—down to two to three days—which meets modern consumer expectations. Advanced partners utilize data-driven network planning to strategically position your inventory closer to customers based on demand patterns, ensuring both speed and reliability.

As Jason Lee, chief operating officer at Kizik notes, \"Flexport has been instrumental in helping us uncover new areas of growth for the Kizik business so that we can continue to delight our customers and partners with an exceptional delivery experience.\"

7. Create automation for high-value orders

In Shopify Flow, create a simple automation: If the order subtotal is $150 or more, identify the order with an \"extra‑dunnage\" tag. Warehouse staff or your 3PL can then see the tag in the pick list and add corner blocks, bubble wrap, or double‑wall cartons to your high-value packages.

Find the fastest, most cost-effective 3PL partner for your business needs

Find the right 3PL to scale your business

\nDownload the 3PL checklist\n

How shipping damages harm your business

It goes without saying that if the transit of your products from paying customers is interrupted—for any reason—you'll lose money, customers, and precious time.

Here are some ways shipping damages can harm your business, according to ecommerce merchants and marketers.

High costs of replacing items

If a customer pays for a product, you have to send it to them—no matter what. Your company is responsible for making sure the product gets from your warehouse pallets to their kitchen table. If it doesn't, you have to spend the extra cash for replacing the damaged shipment.

Damaged and lost shipments harm business through extra spending. Customers expect a replacement if an order arrives damaged or is lost altogether.

Both scenarios amount to lost revenue. Some carriers even charge shippers to investigate a lost shipment, which often takes seven to 10 business days to receive an answer. The replacement you send to a customer could have been sold during those seven to 10 days.

Damaged reputation

\"Shipping damages and lost packages can cause many problems for your business,\" says Ben Rollins. \"Apart from dealing with the cost of replacing the damaged items, you also have to deal with upset customers. This can hurt your reputation, making it difficult to retain customers.\"

Darren Litt, cofounder of Hiya Health, adds, \"Damaged products and lost packages can hurt your reputation. This can lead to negative reviews and may discourage others from doing business with you in the future.\"

Lost time

Not only is it expensive to replace damaged goods and lose customers, but there is an added expense of the time you lose when you spend too much time on the shipping process and supply chain problems.

\"If you are constantly dealing with shipping issues, it can take up a lot of your time and energy, which could be better spent on other aspects of your business,'\" says Darren.

If you do experience shipping problems, remember the economic principle of opportunity cost. The time it takes you to deal with shipping problems could be better spent focusing on other areas of your ecommerce business.

Instead of trying to deal with it yourself, hire a 3PL company to handle packaging, shipping, and returns for you.

Who is responsible for shipping damages?

There's no straightforward answer when it comes to who is liable for shipping damages. The answer is: it depends.

How, where, and when the package is damaged plays a significant role in who is liable for the damages. Regarding the acceptance of most liability, there are different schools of thought. Some say the company is responsible. Others say the courier is responsible.

Camp 1: The company is liable

Phillip Akhzar, of Arka, is one ecommerce professional who believes the company is liable.

\"Shipping damage can be incredibly detrimental to a company's brand loyalty. When an item shows up damaged, ultimately, the company is responsible,\" says Phillip.

While Phillip believes the company is responsible for the cost of lost packages, he agrees that sometimes it's the courier's fault.

\"Though the courier can be held liable if there is proof the damage occurred while the item was in their possession. Either way, your brand image takes damage too.\"

Regardless of whether you accept liability or the courier does, one thing is certain: You have to do everything in your power to serve your customers and protect the reputation of your brand.

Camp 2: The shipping company is liable

The other school of thought is that the shipping company is liable for damages, and the best thing to do is truly vet your logistics provider.

\"Your shipping carrier is liable for provable damages that occurred when the package is being shipped. However, this is much more difficult than it sounds,\" says James Green, owner of Cardboard Cutouts.

\"If your packages are showing up damaged consistently, then you need to switch shipping carriers, otherwise you're going to be consistently replacing products and eating those replacement and shipping costs yourselves.\"

You may also want to note the type of freight shipping that your provider uses. The mode of transportation used to get your products from point A to point B may be a good indication of where in the shipping process freight damage is occurring, allowing you to alter your product packaging accordingly or use a different provider altogether.

Shopify can help you reduce shipping damages

If you've been experiencing higher than normal shipping problems (e.g., damages, theft, or loss), now is the time to look into better shipping options.

The good news is Shopify has a large list of 3PL shipping partners. Take a look at the 3PL systems that integrate into Shopify and streamline the order, fulfillment, shipping, and returns processes.

Looking for the best Shopify enterprise plan for your long-term growth?

Talk to our sales team today

\nTalk to our sales team today\n

Shipping damages FAQ

\n\n

How do you find a good shipping company for your ecommerce store?

There are many different types of shipping services out there, each with its own pros and cons. Choose a service that offers great customer service, can meet the demands of your scaling business, and is willing to share liability for damages.

When looking for a good logistics company, make sure it has a track record of delivering orders on time and in good condition. Ask them for their metrics so you get a better look into how well and with how much care they handle packages.

Another good way to find a shipping company is to check their online reviews and ask other ecommerce brands who are doing a good job.

\n\n

What else can ecommerce brands do to limit shipping problems?

The best thing for ecommerce brands to do to limit shipping problems is to partner with a professional shipping company.

It's also essential to research and evaluate your packaging and shipping materials and processes. Make sure you have the right materials to protect your items based on what the items are, where they are being shipped, and how they are handled.

Other ideas include tracking your packages, insuring your packages, labeling your packages correctly, and sealing your packages.

\n\n

Should ecommerce brands get package insurance?

As a quick review, package insurance covers the cost of lost or damaged packages, ensuring that customers receive their products.

Deciding whether or not you should invest in package insurance depends on what kind of items you sell and whether or not the costs make sense.

If you sell high-ticket items, then package insurance is a good bet. Package insurance is also a great way to protect your brand's reputation and ensure customer satisfaction.

Another option is for merchants to partner with companies that offer insurance to your buyers. In this instance, the buyer can purchase a small insurance policy and cover their bases.

\n\n

","A deeper look into how businesses can deal with lost, stolen, or damaged packages.","

A deeper look into how businesses can deal with lost, stolen, or damaged packages.

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Running out of products cost businesses around $1.2 trillion in 2024, according to the IHL Group. That's more money than the entire economy of the Netherlands produces in a year.

With the World Data Lab predicting $3.2 trillion in additional consumer spending this year, any time you don't have products available, your customers might go to your competitors instead. This can cause huge losses in online sales.

The good news is that with the right stock management tools and apps, you can predict your sales more accurately and keep the right amount of safety stock on hand to prevent these problems.

Table of contents

What is stock management?

Stock management determines and properly manages how much stock a company should have at any given time. It involves all the processes associated with ordering, tracking, controlling, and storing inventory.

Stock management involves:

Tracking fluctuations in your stock
Monitoring the condition of your stock
Understanding customer demand for stock
Determining costs for materials
Calculating shipping, handling, and storage costs

Proper stock management makes it possible to meet customer demands without wasting money on excess stock.

Stock management vs. inventory management

Stock management is a subset of inventory management. It focuses on tracking quantity, condition, and demand of final goods ready for sale.

Inventory management encompasses the entire process, including product tracking, customer demand, fulfillment, forecasting, and supplier information.

While stock management monitors items on shelves, inventory management tracks all products in real time, including those in stock, out of stock, back-ordered, or on sale.

Why is stock management important?

Efficient stock management helps businesses run smoothly. It makes sure products move easily from buying to selling without problems. Keeping accurate counts, businesses avoid selling too much or too little, and keep customers happy.

Research shows that companies with strong inventory management practices see higher operational efficiency, better cash flow, and increased responsiveness to customer demand. While some companies still rely on Excel or basic spreadsheets, modern software solutions can provide far more powerful forecasting and analysis for effective inventory management.

Customer satisfaction

Good stock management leads to happy customers. When customers find what they want, when they want it, they trust your business and come back. A study cited in Mason Frye’s research highlights that improving inventory efficiency can increase productivity by 25% and boost stock usage efficiency by 30%.

Using a unified system that connects online stores, physical stores, and other channels means inventory updates happen everywhere at once. Customers can access products regardless of which specific store or warehouse holds them, and orders can be fulfilled from the location closest to the customer, often through an integrated point-of-sale system.

Cost

Having too much stock ties up money, increases storage costs, and risks items becoming outdated. Having too little leads to lost sales and unhappy customers.

Businesses can use platforms like Shopify to look at current stock, past sales, and future trends to make smart buying decisions. They can easily determine when to reorder products and reduce holding costs. The result is better cash flow, less excess, and fewer costly stockouts.

Sales

Staying on top of timely replenishment helps you avoid lost sales. An effective stock management system makes tracking popular products easy across all channels, helping businesses predict demand accurately.

Unified stock control also leads to:

\nHigher conversion rates: Better product availability means more completed sales.
\nReduced excess inventory: Optimized stock levels across the network
\nLower markdowns: More full-price sales with less end-of-season discounting

Taxes

Stock management affects taxes, too. Businesses must record inventory values at the start and end of each tax year to calculate income correctly. Getting these values wrong can cause compliance problems or penalties.

Different types of inventory vs. stock

As mentioned above, inventory and stock are slightly different. Inventory is all-encompassing; it’s anything you use to make your products or run your business. It can include the raw materials you use to make a product, the final product itself, and the packaging that goes on the finished goods.

Stock, on the other hand, is the finished goods you sell to your customers. In other words, stock is part of your inventory. But, not all of your inventory is your stock.

There is some debate about how many different types of inventory there are. Let’s look at the four main types of inventory (one of which is stock).

1. Raw materials and components inventory

Raw materials and components include any part of your inventory that you use to make your finished products, consisting of direct and indirect materials.

Direct materials are a separate piece of the final product. For example, if you sell sunglasses, the lenses would be an example of a direct material.

Indirect materials are used to make the products, but aren’t part of the final product for sale. For example, lens cleaning supplies would be an indirect material.

2. Work-in-progress inventory

Any material used to create a finished product is work-in-progress (WIP) inventory. If you stick with the sunglasses example, all of the glasses that are partly assembled—but not fully ready—are considered WIP inventory.

WIP inventory isn’t raw materials, but it’s also not a fully assembled product that’s ready for the shelves.

3. Packaging

Packaging includes anything you use to hold your product, and box up and ship your product. For example, if you sell sunglasses, the case would be packaging.

Packaging inventory could also include labels, tissue paper, and cardboard boxes.

4. Finished goods (this is your stock)

Finished goods are any product you sell in its complete form. If you sell dressers, then the entire dresser with all its parts intact would be a finished good. Finished goods are the part of your inventory that is ready to hit the shelves.

Stock management techniques

Effective stock management uses several techniques to keep stock at the right levels and reduce waste. Here’s how each method helps businesses balance supply and demand:

First in, first out (FIFO)

The oldest stock gets sold first. FIFO is suitable for businesses selling perishable items like food, who need to prevent spoilage. It ensures older products leave the warehouse before newer ones, preventing stock from sitting too long on shelves.

Example: A national grocery distribution company uses automated warehouse management software that tracks every product by receipt date across their 12 regional warehouses. The system ensures older stock ships to stores first, preventing waste while maintaining accurate records for regulatory compliance.

Economic order quantity (EOQ)

EOQ is a formula that calculates the perfect amount to order to keep costs lowest. It helps businesses know how much stock to reorder each time to avoid paying too much for storage and prevent running out of products.

Example: An electronics manufacturer calculates EOQ for thousands of components across multiple product lines, balancing high shipping costs against expensive warehouse space. Their system determines ordering 50,000 microchips monthly is more cost-effective than 150,000 quarterly.

Minimum order quantity (MOQ)

MOQ establishes the smallest amount a supplier will sell to you in one order. It helps get better bulk pricing but requires careful planning to avoid ordering too much inventory.

Example: An international hotel chain negotiates MOQs with their amenity suppliers, requiring a minimum of 100,000 shampoo bottles per order. The procurement team distributes these strategically across their 500 properties based on occupancy forecasts to avoid stockouts.

Just in time (JIT)

Stock is only ordered when it's needed, minimizing storage costs. This works well for businesses with changing demand or limited storage space, but requires accurate tracking and reliable suppliers.

Example: A national fashion retailer uses predictive analytics to forecast demand for seasonal items across 500 stores. Their JIT system automatically places orders for specific sizes and colors just three weeks before each seasonal launch, with shipments going directly to stores rather than distribution centers.

Materials requirement planning (MRP)

This is a method that calculates what materials and components are needed for production based on what customers are expected to order. It’s commonly used in manufacturing to ensure materials are available exactly when needed.

Example: An aerospace manufacturer uses MRP software to analyze thousands of components needed for aircraft production. The system automatically schedules raw material deliveries to align perfectly with their 18-month production timeline across multiple facilities.

Days sales in inventory (DSI)

This metric measures how long inventory stays in stock before being sold. Lower numbers mean stock moves quickly, while higher numbers suggest products are selling slowly, which can cost more in storage.

Example: A multinational retailer tracks DSI across 75,000 products in real time. When winter coats hit 60 days in inventory versus the target 40 days, the system automatically adjusts future purchase orders and triggers regional promotional pricing.

Stock management tips

1. Adopt a unified inventory management software

Unified inventory means linking all your stock information together. Not just within your company, but across all places where your products are stored, sold, and delivered. Instead of each store or warehouse working separately, everyone can see exactly what products are available and where they are in real time.

When all your stores (both physical and online) and warehouses share the same stock information, customers can find what they want more easily. Connecting your stock with partners (like letting some products ship straight from suppliers), allows you to offer more products without keeping extra stock yourself.

Shopify’s built-in inventory tracking lets you monitor stock levels in real time, preventing oversells and ensuring you don’t run out unexpectedly. If your business uses Shopify POS Pro, you can leverage the Stocky app for more advanced tasks, such as demand forecasting, purchase orders, stock adjustments, and vendor management.

2. Audit inventory

Even when all your inventory systems are connected, it's still important to regularly check that your actual physical items match what your computer system says you have. If you have a lot of warehouses, stores, and online marketplaces, discrepancies can add up fast.

Perform cycle counts, where you audit different product categories on a rotating schedule. This can catch errors more quickly compared to massive, less frequent, full-warehouse counts.

When you discover differences between physical stock and computer records, look closely at your processes. The problems might come from theft, incorrect receiving procedures, or simple typing mistakes.

\"Example — Stocky, the free inventory management app for Shopify, shows your stock on hand report.

3. Set minimum stock levels

Set minimum stock levels throughout your network to handle unexpected increases in demand or short-term supply problems. These floor levels help each location keep enough products available without spending too much on storage costs.

Calculate the safety stock you need at each location based on current demand information, restocking time, and seasonal patterns. In a unified system, each location's status updates your main system automatically, helping you adjust minimum inventory levels as needed.

👉 Explore Shopify’s inventory alert apps.

4. Use ABC analysis

When you have thousands of different products (SKUs), you need a way to decide which ones deserve the most attention. ABC analysis divides your products into three groups:

\"A\" items bring in most of your money.
\"B\" items perform moderately well.
\"C\" items have less impact on your business.

Spread high-priority items across more locations or share them among partners for better availability. Keep your slower-selling items in fewer locations to reduce costs.

📌Pro tip: Shopify’s inventory reports can automate ABC analysis for you. Analyze inventory across all sales channels—including multiple retail stores, your ecommerce website, and social media storefronts—to find those most valuable to your business.

\"ABC — Get an ABC analysis for your inventory within Shopify.

5. Build partnerships with suppliers

Good communication and trust with suppliers give you more flexibility when restocking and handling unexpected situations. If you suddenly need more products or face shipping problems, suppliers who understand your business can speed up deliveries or offer better payment options.

Suppliers can plan their production better by seeing your sales forecasts and knowing how quickly products are selling. Strong supplier relationships also help you find alternative suppliers or different supply arrangements if your main supplier faces material shortages or international trade problems.

6. Consider regional demand

When you sell in different areas, some products may sell better in one place than in others. Things like weather, what local people like, and special events can change what people want to buy. Looking at your sales information can help you put your products in the right places.

Shopify has a tool called fulfillable inventory that helps with stock allocation. It lets you control what products customers see based on where they are. For example, if you sell winter coats in Canada but beach towels in Florida, customers will only see what's available in their area. This also stops you from selling more than you have in any location.

To use this tool, you need either:

A shipping profile with at least two different shipping zones serviced by different shipping centers, or
A store location where customers can pick up items or get local delivery

7. Work with a 3PL partner

Use a shipping and logistics partner to better manage stock. These experts store products and send orders to customers from warehouses in different locations. Your products will be placed strategically, customers will get orders faster, and shipping will cost less.

Fortunately, you don’t need to look far for a 3PL provider. Shopify Fulfillment Network connects your store with Flexport, a leading logistics company, to manage the entire process for you.

8. Plan for the future

Customer preferences change quickly, and so do supply chain conditions. Good planning means looking at past sales patterns and using current data from your inventory system to predict future demand.

Think through the best and worst-case scenarios (like if your product suddenly becomes popular on social media) so you can place your stock in the right locations and move it quickly when demand increases. Make sure your supply network can handle increases in both online orders and in-store pickups.

9. Monitor sales and performance

Pay close attention to how your products are selling across all channels and partner nodes. The real-time data from a unified inventory system can help you spot trends and problems early.

If a particular warehouse or store frequently runs out of a product, check if you need to adjust reorder points or allocations.
If a product category isn't selling as expected, consider repositioning it or using promotions.

Regular monitoring creates a good base for constant improvement. Each piece of data allows you to fine-tune your inventory management, whether by changing order quantities, moving stock between locations, or adjusting how you work with suppliers.

\"Sell-through — Find each product’s sell-through rate in Shopify analytics.

Make stock management easy with an IMS through third-party logistics

Stock management is an integral part of your overall inventory management technique. When you can track the data behind your brand’s unique supply and demand, you get an accurate look at exactly how much stock you need on hand and when.

While there are several ways to approach stock management, every brand should use an inventory management system (IMS). Even better, find a third-party logistics (3PL) partner who will take on managing inventory for you.

Illustration by Melanie Peters

FAQ on stock management

How are stock management and inventory management different?

Stock management is the process of tracking, managing, and storing complete products to meet consumer demand. Inventory management keeps track of all the items you use to run your business.

All stock is inventory, but not all inventory is stock, making stock management part of the larger inventory management process.

What are the three most common problems brands have with stock?

There are three main problems brands face when managing their stock.

\n1. Overstocking: Ordering too much inventory leads to extra storage and transportation costs.
\n2. Understocking: Not having enough stock results in lost customers or excessive spending on stock replenishment.
\n3. Obsolescence: When stock becomes outdated, no longer in demand, expired, or unsellable.

How does a 3PL help ecommerce stores with stock management?

A 3PL (third-party logistics) provider offers warehousing and distribution services to businesses. By working with a 3PL, ecommerce stores can outsource stock and inventory management across multiple suppliers and customers.

This helps businesses, both large and small, save time and money by reducing their reliance on internal logistics operations.

How do you make stock management of your ecommerce store easy?

Running an online shop can be highly profitable, but customers expect instant availability of products.

To meet customer demands, it’s crucial to accurately forecast stock levels. The best approach is to use an inventory management system or a 3PL provider to ensure smooth operations.

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The customer journey for physical goods used to be relatively straightforward. Consumers would make a shopping list, go to the store, pick up products, check out, and go home.

With advancements in commerce technology, an abundance of online and offline channels, and variations in customers preferences, no two customer journeys look alike. Yet customers still demand highly personalized marketing messages and shopping experiences everywhere they shop.

Consumers can buy whatever, wherever, and whenever they want. As a result, seamless omnichannel experiences are no longer a novelty—they’re the expectation.

Businesses providing these cohesive and integrated shopping experiences are winning over competitors. In fact, consumers spend up to 1.5x more with companies that offer fluid, personalized, and seamless customer experiences.

This guide shares how to build an omnichannel marketing strategy, complete with examples from omnichannel brands that have reaped the rewards of one.

Table of contents

What is omnichannel marketing?

Omnichannel marketing is an integrated approach that uses many channels, such as social media, email, and SMS, to reach a customer. The goal is to create a consistent brand experience, no matter where a customer interacts with the company.

Brands use omnichannel marketing to create a seamless user experience across all touch points. This could include things like providing customers with the same product selection, pricing, and promotions across all channels, as well as offering customers the ability to purchase items online and pick them up in-store.

\"Image — What an omnichannel experience looks like versus multichannel. | Source: *ResearchGate*

Not to get confused with multichannel marketing, omnichannel is highly personalized, consistent, and regularly updated marketing based on your shoppers’ needs—not on the needs of your channels. It puts customers at the center, offering them a seamless experience across all the sales channels they’re using and presenting them with the right information at the right time.

How omnichannel marketing works

SAB reports that customer touchpoints have more than doubled over the past five years. Today’s consumers expect seamless and cohesive shopping experiences, no matter where or when they interact with your brand.

Omnichannel marketing mainly relies on data. Only when you know your customers inside out can you be proactive with the marketing messages they’ll respond best to, on the specific channels they’re using.

Consider an enterprise retailer that sells through its online store, marketplaces, brick-and-mortar stores, and social media storefronts. With omnichannel, each one is seamlessly integrated with the other.

Potential customers might see your social media posts and start a subscription. From there, the brand can send push notifications through mobile apps when they’re near a physical store, cross-sell related products through Facebook ads, or send targeted email campaigns to people who’ve abandoned their cart without making a purchase.

What’s the difference between omnichannel marketing and multichannel marketing?

Personalized omnichannel marketing is not the same thing as multichannel marketing. Instead, it’s highly personalized, consistent, and regularly updated marketing based on your shoppers’ needs—not on the needs of your channels.

It puts customers at the center, offering them a seamless experience across all the sales channels they’re using and presenting them with the right information at the right time.

“The difference between omnichannel and multichannel comes down to integration and customer experience. In multichannel marketing, each channel provides different services and runs separately,” says Paige Arnof-Fenn, founder and CEO of Mavens & Moguls.

“Omnichannel marketing centers around the customer by providing them with a personalized message in a seamless, unified experience. This allows the customer to easily access information from any of the channels, since the channels are connected.”

What are the benefits of omnichannel marketing?

Increase visibility and brand awareness

More and more customers are shopping both in-store and across online channels, and it can be challenging for brands to fuse the experiences.

If you’re a retailer with physical stores and ecommerce stores, omnichannel marketing offers an opportunity to create integrated experiences that provide consistency and boost brand awareness. It meets the demands of today’s tech-savvy consumers through highly personalized, consistent, and regularly updated marketing, helping you stand out from competitors that haven’t yet made the investment.

Capture shoppers where they buy

One of the benefits of omnichannel marketing is that it ensures your marketing isn’t disjointed across platforms—which can also pay dividends for your store in the long run.

Not only do omnichannel customers not shop exclusively on one platform, they also don’t shop linearly. Instead, they bounce from one channel to another before making a purchase. In a Salsify report, respondents from the US, the UK, Germany, and France reported they engage on at least 11 different touchpoints.

What’s more, 80% of consumers say convenience, knowledge, and friendly service are the most important elements of a positive customer experience. The same report also found that 43% of shoppers would pay more for greater convenience. In other words: today’s consumers have new shopping patterns, and they favor convenience now more than ever.

Improve customer loyalty

Closing the first sale is the first hurdle any merchant has to cross. Once you’ve surpassed this, don’t ignore your existing customer base. Use your omnichannel marketing campaigns as a tool to turn one-time customers into repeat shoppers. These people account for 21% of a brand’s total customers yet drive 44% of their total annual revenue, on average.

McKinsey found that omnichannel customers shop 1.7 times more than those who use a single channel. They also spend more than their counterparts, justifying the expense in omnichannel marketing that meets customers on the channels they’re already using—not just those that are easiest for you to post on.

How to build an omnichannel marketing campaign

1. Define your customer journey map

The goal of omnichannel marketing is to meet shoppers with highly personalized messages at every phase and channel of the buyer’s journey. This means it’s essential to understand your customers and reach shoppers wherever they are—be it a brick-and-mortar store, a live event, social media, in-app, or on your website.

Customer journey maps define the typical order in which these experiences take place. For some brands, one sales channel comes way before another. “When we were doing pop-ups and in-person events, we realized we were making sales for all the month after because we would meet people in person,” says Myriam Belzile-Maguire, founder of Macguire Shoes.

“People try the product, so we felt like having a retail presence made sense in our business, especially when people want to try shoes for the first time, at least once. And then once they know they like the brand and they like their quality, and then they feel more comfortable buying online.”

\n $\"map$ \n

You’ll need concrete evidence to support customer journey mapping. Rely on the ecommerce analytics already available to you and supplement it with qualitative data from customer feedback surveys and quizzes.

The goal is not only to know what channels your target market uses throughout the sales journey, but the emotions and challenges they’re facing with each interaction. When are they aware of the problem? What’s the first step they take? What’s the final decision-maker that convinces them to buy? Outline the channels or touchpoints that occur at each stage to build your customer journey maps.

2. Decide on your marketing channels

Your customer journey map and will lead you in the right direction when determining marketing channels, but consider integrating the following into your omnichannel marketing strategy:

\nSocial commerce. Marketers can direct shoppers from photos on social media directly to product pages, and consumers can also buy directly on TikTok, Facebook, and Instagram.
\nIn-app. Mobile devices are a powerful shopping tool, and now it’s possible to create your own mobile app, market, and make sales right within your Shop app.
\nEmail marketing and SMS. Capturing email addresses and numbers across channels and during a potential online purchase helps brands and retailers nurture customers to purchase.
\nIn-store experiences. Loyalty programs, digital kiosks, and buy-in-store-ship-it-to-your-home are all ways brands and retailers can engage consumers in person.

3. Clarify your messaging

Consistent messaging helps to establish your brand identity. The goal is for someone to see your omnichannel marketing campaigns and know exactly who your brand is, what it stands for, and why they should consider your products when they’re looking to solve a problem or achieve a goal.

Develop a brand messaging strategy that outlines these three core pillars. Touch on things like:

\nBrand positioning. How does your product compare to what’s already on the market?
\nBrand personality. Are you fun and cheeky, or corporate and professional?
\nVisual elements. What colors, fonts, and photos will you use?
\nBrand values or mission. What’s the overarching goal that underpins everything you do?

Bear in mind that what you say will change depending on your target customer’s stage in the buying journey. If you’re doing omnichannel marketing for a coffee brand, for example, people who’ve opted into your email list might want more product-specific data than your social media followers. But underpinning both campaigns is your mission to become more sustainable and engage Gen Z audiences with tongue-in-cheek comedy.

4. Build your tech stack

Retailers today have never had a better marketing toolkit. The rise of omnichannel retail helps ecommerce merchants, brands, and retailers meet shoppers wherever they are, which helps them take advantage of growing customer spending.

Look for omnichannel marketing software that helps segment your customers based on the actions they’ve already taken and the data you’ve collected. The last thing you want is to drive the hard sell with Facebook ads that target people with no idea of what you are selling. A much more effective omnichannel approach is to retarget those who’ve already visited specific URLs on your website, such as /category/t-shirts, and show them t-shirts popular with people of a similar demographic.

Shopify stores already have the capability to collect customer data across multiple sales channels from a single commerce platform. From there, choose an omnichannel marketing app that can integrate with your store and run campaigns across multiple channels, such as:

“As a Shopify customer, we have access to the tools, apps, and integrations needed to succeed in a multi-channel world,” says Kerri Economopoulos, managing director at Titan AV. “Allowing us to put the customer first and deliver a seamless experience across all channels that builds trust and loyalty in our brand whilst driving growth for our business.”

\n\n

One of the more advanced tools of omnichannel marketing is mobile location data combined with first- and third-party audience data. Geo-targeting technology can help target specific consumers during the “moment of truth,” like when they first stepped foot into your brick-and-mortar store.

But be sparing and strategic while using geofencing marketing or mobile GPS. You want to make sure the shopper has consented. Often you can get that consent when offering store Wi-Fi or when a user downloads an app. Then, in the customer’s mind, it makes sense that you would provide offers or suggestions because they’re an active participant.

5. Test and analyze marketing attribution

Data collection—including traffic, on-site interactions, personal data, purchases, and searches—is critical to powering ecommerce omnichannel personalization. The same goes for tracking your success with the right metrics.

Consumers come in contact with retailers and brands across multiple touchpoints, including online, offline, in-store, word of mouth, billboards, and in the metaverse. Some perform better than others, as Amit Mahtani, owner of Bagels on Greene, explains: “If something is a bestseller in the retail side, it's not necessarily going to be a bestseller online, so make sure you track them individually.”

But figuring out what data to use and how to track it is only going to get more complex, especially with Chrome phasing out third-party cookies. First-party data collection will become increasingly important for merchants, and AI solutions will lead the way to do some of the heavy lifting and help scale marketing automation.

Omnichannel attribution is the practice of attributing sales and conversions to the channels that customers use. While it’s true there is no one-size-fits-all attribution method or collection tool for omnichannel marketing, most marketers will:

Use cookies (for now), tags, user IDs, and UTM codes
Set up conversion tracking and pixels (e.g., Facebook pixel, Google Ads conversion tracking, etc.)
Integrate customer relationship management (CRM) and other marketing analytics platforms

The best method for collecting and analyzing attribution data is to use a tool that captures a comprehensive view of the customer journey, tracks various campaigns, and has robust reporting. Apps like Triple Whale and Polar Analytics can collate data from every marketing channel and sync it with your Shopify sales and conversion data. This allows you to paint a more accurate picture on how customers interact with your campaigns.

Get better ad performance with Shopify Audiences

Shopify Audiences uses custom audience lists—powered by millions of commerce insights—to help you find relevant buyers and lower advertising costs.

\nDiscover Shopify Audiences\n

How does omnichannel attribution work?

What is omnichannel attribution?

Consumers come in contact with retailers and brands across multiple touchpoints, including online, offline, in-store, word of mouth, billboards, and in the metaverse.

Omnichannel attribution is the practice of attributing sales and conversions to the channels that customers use. “This data allows businesses to see which channels are most effective and where they should focus their efforts,” says Tyler Brady of Zero Gravity Marketing.

Ways to collect and analyze attribution data

You’ve heard the quote from successful US merchant John Wanamaker: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Thankfully, it’s not the 1900s anymore, and we have robust omnichannel marketing tools that help marketers collect and analyze attribution data.

There are several attribution models, and there is no one right way to collect and analyze attribution data.

Alan Park, digital marketer for Hood River Juice Company, says, “There are at least eight attribution models—some of them give all the credit to the first channel, some give all the credit to the last channel, and so on. For omnichannel marketing, you can collect data however you want. You are not tied up on a linear attribution model.”

While it’s true there is no one-size-fits-all attribution method or collection tool for omnichannel marketing, most marketers will:

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Set up conversion tracking and pixels (e.g., Facebook pixel, Google Ads conversion tracking, etc.)
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Use cookies (for now), tags, user IDs, and UTM codes
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Integrate CRM and other marketing analytics platforms
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The best way to collect and analyze attribution data is to use a tool that captures a comprehensive view of the customer journey, tracks various campaigns, and has robust reporting.

What does omnichannel attribution look like when it’s done correctly?

When done correctly, omnichannel attribution gives omnichannel marketers a comprehensive and clear look into how customers are engaging and converting.

A solid attribution strategy will use analytics tools to capture relevant and helpful tracking data. With these insights, marketers can improve marketing efforts and boost the ROI of marketing campaigns.

Stephen Heffernan, digital marketer at The Connected Narrative, says when searching for an attribution tool, marketers should look for one with a dashboard showing “how many customers were acquired from each channel, what the ROI was for each channel, and which marketing channels were most effective at different stages of the customer journey.”

Omnichannel marketing trends

We took to Twitter to ask active marketing professionals what fresh hot-out-of-the-oven omnichannel marketing trends they’ve noticed in the past year or two. Here are the top five trends, with brand examples.

1. QR codes at live events to bring shoppers online

Marketers are becoming more creative with leveraging mobile devices in their omnichannel strategies by fusing offline and online shopping experiences with QR codes. The number of US smartphone users scanning QR codes will increase to 99.5 million by 2025, from 83.4 million in 2022.

Graph from eMarketer showing the rise of QR code scanner usage.

For example, Happy Hour uses free samples and QR codes at in-person events to encourage people to buy more products online.

“I went to a Lorde concert at the Shrine Auditorium in LA,” says Jonathan Roque, content marketing manager at Smile.io. “I got a free sample of Happy Hour and loved it. It was also available at the bar. I bought Happy Hour at the concert, scanned the QR code, went home, and bought more online.”

2. Live ads + QR codes + TikTok videos

Marketers also use QR codes on live ads to drive traffic back to TikTok.

Michael Miraflor, chief brand officer at venture capital firm Hannah Grey, saw Mulberry use this strategy and posted about it on Twitter.

Miraflor says Mulberry posted a series of four poster ads with a branded QR code. The QR code redirects interested passersby to a zine, hosted on a TikTok landing page, that serves as a microsite brand experience.

Example of QR code being used by Mulberry.

“I appreciated the Mulberry omnichannel campaign execution because the experience felt full-funnel, in that every bit of the consumer journey—from encountering the creative on the street to scanning the branded QR code to browsing through the zine content—felt very considered,” says Miraflor.

“The fact that OOH is one of the media channels driving toward a digital experience is great. It feels modern and omnichannel.”

This strategy is a stellar way to keep foot traffic engaged in content and other popular digital channels.

3. Social ads collecting customer data and sending customers in-store for free product

O2O (online-to-offline) commerce is also on the rise. O2O commerce is an omnichannel strategy where merchants work to bring online customers into physical stores to boost sales and loyalty.

Nikhil Venkatesa, content marketing lead at Convictional, provides a great example of how brands are using this technique.

He says brands like Stimulate are creating Instagram ads that collect a customer’s phone number and ask them to buy a product in-store. The customer will send the receipt as proof of purchase, and then the company will reimburse the expense on Venmo.

“Marketers get the double whammy of collecting a phone number for following up on SMS marketing, and you actually influence customers to try the product for free and see how awesome it is,” says Venkatesa.

4. Quizzes to collect data and personalize direct-mail content

Quizzes are an interactive tool marketers use to personalize products and marketing materials.

L’Amarue is one brand using this strategy. It uses an interactive quiz on its website to learn more about its customers’ individual skin care concerns.

\"The\" — The second question on L’Amarue’s skin wellness quiz on its website.

The second question on L’Amarue’s skin wellness quiz on its website.

Then, L’Amarue takes this information and sends a complimentary physical pamphlet in the customer’s order. The pamphlet has tips on how to improve their specific skin care concerns.

“This strategy is a great way to bridge the digital and physical experiences of our brand, and a way to connect with our customer base in their everyday usage of our products,” says Ande Sozzi, CEO and founder of L’Amarue.

“Collecting data directly from every individual customer has been a game-changer in making every physical experience unique and meaningful for our customers. It’s like having a member of our team on the ground with them, giving them info, tips, and tricks, and someone to hold their hand through their specific journey.”

What’s interesting about this example is L’Amarue is a small skin care brand with a team of only two. Omnichannel marketing doesn’t require a huge budget or team—only a smart strategy.

5. Online brands expanding into new retail locations

Some brands like Allbirds and Parachute Homes are opening their own stores to be closer to suburban shoppers. Others are collaborating with retailers to bring their products into physical stores, but not necessarily their own. Olipop is a good example.

Ed Kolovson, director of business insights at Olipop, tweeted about how expanding into retail has boosted the brand’s sales: “Olipop has increased door count by about 50% since the start of the year (excluding Walmart launch). … Sales have not declined one bit and Amazon sales have increased over 50% since the start of the year.

“Expansion into retail has led to more awareness and customers are able to try the product in stores first. This has led us to an increase in first time purchasers subscribing thus increasing our lifetime value.”

How Shopify can help with omnichannel marketing

In today’s highly competitive retail landscape, omnichannel marketing is essential to the success of your brand. It’s also not an easy endeavor, and takes time, tools, and strategy to get right.

Thankfully, Shopify has its point-of-sale and ecommerce systems integrated into one easy-to-use platform. Shopify helps merchants create personalized experiences for customers—no matter where they are engaging with your brand.

Omnichannel marketing FAQ

What are the four pillars of omnichannel marketing?

Visibility, personalization, timing, and optimization are the four main pillars of omnichannel marketing. By sticking to these principles when building your marketing campaigns, you’ll make each interaction meaningful and contextually relevant to your customers.

What is omnichannel marketing vs multichannel marketing?

The biggest difference between omnichannel and multichannel marketing is the central piece. With multichannel marketing, a retailer treats its products as the focal point. With omnichannel, however, the goal is to proactively deliver seamless and cohesive customer experiences that give potential shoppers the things they need, regardless of the channel they’re using.

Is omnichannel marketing effective?

Done right, omnichannel marketing is incredibly effective. Retailers can increase brand visibility, gain a competitive advantage, and increase conversion rates when they’re proactively delivering outstanding customer experiences on the channels their target market uses.

Is Amazon an omnichannel?

Amazon is an example of omnichannel marketing. The brand engages customers and encourages them to buy on a variety of channels, including its marketplace, the Amazon app, physical stores, and TV apps.

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Ecommerce sales are growing faster today than ever before. In 2023, global ecommerce sales were over $6.5 trillion, and are expected to surpass $8.1 trillion in 2026.

As more customers purchase online, people share more personal and financial data with trusted brands.

Unfortunately, as consumers share sensitive authentication data online, hackers come out of the woodwork to try and steal that data. And, if your company processes payments online, you’re on their hit list.

According to the HUMAN Enterprise Bot Fraud 2023 report, on average, 48% of total login attempts in 2022 were malicious. This is a 108% Year-over-Year (YoY) increase in account takeover attacks from 2021. Even some of the biggest ecommerce companies like Yum! Brands, the parent company of KFC, Taco Bell, and Pizza Hut, which announced a cyber attack in April 2023 that may have exposed employee data.

While consumers continue to shop online, brands and retailers need to understand people will only shop with your company if they trust your site’s security. Baymard found the average documented online shopping cart abandonment rate is 70.19%.

This begs the question: What can you do to prevent cybersecurity breaches and earn the trust of your customers? Become PCI Data Security Standard (DSS) compliant.

Table of contents:

What is PCI DSS?

PCI DSS compliance stands for Payment Card Industry Data Security Standard. It’s an information security standard defined by the Payment Card Industry Security Standard Council, created to improve existing processes, checks, and balances that protect cardholder data.

It applies to any organizations that store, process, or transmit credit card data from places like Visa, Mastercard, Discover, American Express, and JCB.

In December 2004, the main credit card brands formed the Payment Card Industry Security Standards Council (PCI SSC), the organization behind PCI DSS. Since then, PCI SSC has released several updated versions of the PCI DSS standards. The most recent update—PCI DSS v4.0.1—was released in June 2024.

According to a document created by the council, PCI DSS v4.x incorporates several changes, including:

Working to continually meet the ongoing security needs of the payments industry by expanding multi-factor authentication requirements and updating password requirements.
Promoting security as a continuous process to stay ahead of cybercrime. One example includes adding guidance to help people implement and maintain security.
Increasing flexibility for organizations using different methods to support payment application innovation. This includes the allowance of group, shared, and generic accounts.
Enhancing validation methods and procedures to support transparency. This includes better reporting.

PCI compliance standards were developed to protect card issuers and cardholders by making sure merchants meet global technical, operational, and security requirements to keep all payment data safe.

Examples of data breaches

The largest data breach in history is attributed to Yahoo!, when, in 2013, Russian spies hacked into the company’s database by sending fake emails to Yahoo! employees and compromised three billion accounts.

Here are some examples of the most recent ecommerce data breaches.

Honda E-commerce Platform Attack (2023)

In 2023, Honda's e-commerce platform for power equipment, lawn, garden, and marine products was compromised due to a significant API vulnerability. This flaw allowed unauthorized password resets for any account, potentially granting full admin-level access without needing the current password or a security token. The breach exposed sensitive data including 21,393 customer orders, 1,570 dealer websites, 3,588 dealer accounts, 1,090 dealer emails, and 11,034 customer emails from August 2016 to March 2023. The vulnerabilities were addressed by Honda in April 2023 after responsible disclosure in March.

Luxottica Data Exposure (2023)

Luxottica, the world's largest eyewear company, experienced a data breach in 2023 that exposed the personal information of over 70 million customers. The breach occurred due to a cyber attack on a Luxottica partner in 2021, with the database containing approximately 300 million customer records from the United States and Canada being leaked on hacking forums in April and May 2023. The leaked data included email addresses, full names, residential addresses, and dates of birth, but did not contain financial information, social security numbers, or login credentials.

JD Sports Data Breach (2023)

JD Sports, a leading retailer of sports, fashion, and outdoor brands, reported a cyber-attack in 2023 that potentially accessed the personal and financial information of 10 million customers. The breach targeted online orders made between November 2018 and October 2020 across several of JD Sports' brands. The information potentially accessed included names, billing and delivery addresses, phone numbers, order details, and the final four digits of payment cards. JD Sports notified the Information Commissioner’s Office and began contacting affected customers in January 2023.

Does my business need to be PCI compliant?

You may be wondering whether or not you are required to become PCI compliant. Well, yes and no.

Technically, US federal law doesn’t require PCI compliance. All major credit card companies require PCI compliance when your organization stores, processes, or transmits cardholder data.

If you don’t comply, credit card companies may:

Impose fines (anywhere from $5,000 to $500,000 per month)
Suspend your credit card usage privileges
Increase your transaction fees
Issue a Common Point of Purchase (CPP) notice
Hold you liable for fraud charges

“Any retail business that conducts transactions with the major credit card companies is required by those schemes to adhere to the PCI DSS requirements,” says Mitangi Parekh, senior marketing manager at eSentire.

“Retailers have access to credit card data and this data is not just being stored by the retailer in some sort of a locked box. It's transmitted and processed, often with third-party vendors that the retailer may do business with. So, being compliant with the PCI DSS requirements helps retailers determine the necessary controls, policies, or practices they need to have in place to help reduce retail-specific cyber risks,” says Parekh.

Adhering to PCI compliance standards isn’t about avoiding fines. It’s about protecting your customers and their personal data. When you do everything in your power to reduce the potential for data breaches, it increases your business’s credibility and the trust of your customers.

2024 ecommerce PCI compliance checklist

The good news is, if you build your ecommerce store on a SaaS solution like Shopify, your store will be PCI compliant out of the box. You won’t have to worry about following rigid steps every year to ensure PCI compliance.

“The best advice for a new ecommerce entrepreneur is to choose a platform that is already PCI compliant, so you’re covered by default. PCI compliance is very pricey, which bigger, more established retailers can invest in, but it’s not practical for small businesses,” says Parekh.

If you choose to invest in a commercial PCI solution or an open-source PCI compliance platform, then your IT team will need to follow these 12 steps. This is a very high-level overview, but it’s wise to consult the PCI DSS requirements.

1. Install and maintain network security controls

Installing and maintaining network security controls (NSCs) means utilizing solutions such as network policies and firewalls to protect cardholder data. This includes only allowing trusted traffic to enter your cardholder data environment (CDE), configuring and maintaining NSCs properly, and creating a highly secure zone for all card data storage.

2. Apply secure configurations to all system components

Hackers often try to breach systems by using default settings to access sensitive information. Since default configurations such as default passwords are easily determined through public information, make sure you apply secure configurations to system components. Also, change default passwords and make them more secure.

3. Protect stored account data

If you’re storing credit card information or other sensitive data, ensure you have protection methods like point-to-point encryption, truncation, masking, and hashing. Do everything to minimize risks. This includes not storing unnecessary info, truncating cardholder data, and not sending sensitive info through email or instant messaging.

4. Protect cardholder data with strong cryptography

Use strong cryptography to protect data, in particular during transmission over networks that are highly vulnerable to attack—especially public networks.

5. Protect all systems and networks from malicious software

Malware includes things like Trojans, spyware, viruses, worms, ransomware, rootkits, and links. Hackers use these to infiltrate a computer system. Protect your cardholders with anti-malware and anti-virus software solutions.

6. Develop and maintain secure systems and software

Avoid hacks with the help of vendor-provided security patches, monitoring your software lifecycle (SLC), and implementing secure coding techniques. Ensure the system components have software patches that protect against compromise and malware.

7. Restrict access to cardholder data by Business Need to Know

Make sure critical data is only accessible by authorized systems on a need-to-know basis. Create rules that give specific access and privileges to IT personnel to complete only the necessary tasks.

8. Identify users and authenticate access to system components

Authenticate users by establishing their identity and putting a verification process into place. Consider requiring users to provide proof of identification to verify who they are. Additionally, implement multi-factor authentication (MFA) to secure access into the high-value systems and prevent misuse.

9. Restrict physical access to cardholder data

Protect the exfiltration of cardholder data by restricting physical access. This means removing hard copies and any other physical document or device that has sensitive information. This requirement usually applies to merchants who fully manage their payment infrastructure.

10. Log and monitor all access to system components and cardholder data

Another critical step in protecting cardholder data is to put logging mechanisms into place and track users and systems activities. Logs on system components help with tracking, altering, and analysis in the event of a breach.

11. Test security of systems and networks regularly

Hackers don’t rest, so don’t sleep on checking the security of your system. Implement tools, processes, and test networks to stress test your security often.

12. Support information security with organizational policies and programs

Take the time to put your security and compliance information in writing, and build a program to maintain compliance year-round. Then, educate all of your employees on what your compliance policies are and how they can play a critical role in protecting your customers’ data.

Ecommerce PCI compliance requirements and levels

Compliance levels vary depending on whether you are a merchant or a service provider. For ecommerce merchants, there are four different compliance levels, and each may vary slightly depending on the credit card scheme.

You can determine your PCI compliance level by evaluating how many transactions you process annually through your respective credit card provider. Here’s a closer look at Visa, Discover, and Mastercard’s compliance levels to help you determine your own.

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PCI Compliance Level	Transactions per Year	Validation Requirements
Level 1	More than 6 million	\n \n Annual On-Site Assessment by a QSA \n Quarterly network scans by an ASV \n Yearly submission of the AOC and ROC \n \n
Level 2	1 million to 6 million	\n \n Yearly self-assessment using an SAQ \n Quarterly network scans by an ASV \n Yearly submission of an SAQ-based AOC \n \n
Level 3	20,000 to 1 million	\n \n Yearly self-assessment using an SAQ \n Quarterly network scans by an ASV \n Yearly submission of an SAQ-based AOC \n \n
Level 4	Fewer than 20,000	\n \n Yearly self-assessment using an SAQ \n Quarterly network scans by an ASV \n Yearly submission of an SAQ-based AOC \n \n

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PCI Compliance Level 1

Level 1 is the highest compliance level. It’s for merchants who process more than six million transactions annually. This level also includes all third-party processors (TPPs) that process over 300,000 transactions each year.

PCI compliance Level 1 validation requirements include:

Annual On-Site Assessment by a Qualified Security Assessor (QSA) to complete an Annual Report on Compliance (ROC)
Quarterly network vulnerability scans by an approved scanning vendor (ASV) to produce an attestation of Scan.
Yearly submission of the AOC and ROC to demonstrate compliance against all of the 300+ PCI DSS requirements and sub-requirements

PCI Compliance Level 2

Level 2 is for merchants who process between one million and six million transactions annually. It also includes third-party processors (TPPs) that process fewer than 300,000 transactions every year.

PCI compliance Level 2 validation requirements include:

Yearly self-assessment using the a proper self-assessment questionnaire (SAQ) according to the PCI SSC SAQ Instructions and Guidelines\n
Quarterly network scans by an approved scanning vendor (ASV)
Yearly submission of an SAQ-based AOC to demonstrate compliance against all of the applicable PCI DSS requirements

PCI Compliance Level 3

Level 3 is for smaller ecommerce merchants who process 20,000 to one million transactions each year.

PCI compliance Level 3 validation requirements include:

Yearly self-assessment using the a proper self-assessment questionnaire (SAQ) according to the PCI SSC SAQ Instructions and GuidelinesPCI SSC SAQ\n
Quarterly network scans by an approved scanning vendor (ASV)
Yearly submission of an SAQ-based AOC to demonstrate compliance against all of the applicable PCI DSS requirementsAttestation of compliance form and submitted documentation

PCI Compliance Level 4

Level 4 is for companies that process smaller amounts of transactions annually. Merchants who process fewer than 20,000 transactions a year are considered Level 4.

PCI compliance Level 4 validation requirements include:

Yearly self-assessment using the a proper self-assessment questionnaire (SAQ) according to the PCI SSC SAQ Instructions and GuidelinesPCI SSC SAQ\n
Quarterly network scans by an approved scanning vendor (ASV)
Yearly submission of an SAQ-based AOC to demonstrate compliance against all of the applicable PCI DSS requirementsAttestation of compliance form and submitted documentation

Changes rolled out as of March 2024

There are 63 new requirements ecommerce businesses must comply with to meet PCI standards. But only 12 of them have to be met by March 31, 2024. The first batch of 12 requirements focuses more on compliance methodologies and defining roles rather than the nitty-gritty technical details.

This strategic approach eases organizations into the more rigorous demands and clearer role delineations that'll be achieved with the complete rollout March 31, 2025.

Here's a breakdown of what's expected by March 2024:

\nClarifying roles and responsibilities: A significant chunk of the new requirements (specifically, 2.1.2, 3.1.2, and so on through 11.1.2) zeroes in on the 'who does what' within your IT and security teams. This means explicitly assigning individuals to oversee various aspects of PCI compliance and incident response. This fosters a culture of best security practices within your organization and streamlines responding to incidents and audits.
\nDefining third-party roles: Requirement 12.9.2 calls for third-party service providers to clearly outline their roles in managing your customer data environment (CDE). Whether it's a payment processor or a managed service provider, they must also be ready to share their PCI DSS compliance status upon request. This transparency ensures all parties involved agree, and that compliance is a collective effort.
\nOutlining the CDE and scope: As part of the groundwork for full PCI DSS 4.0 compliance, organizations must define their CDE and the scope of compliance a year in advance. This preparatory step is crucial for a seamless transition to the comprehensive requirements set to take effect in March 2025.
\nEmbracing customized approaches: PCI DSS 4.0 introduces a 'customized approach' for meeting certain requirements. This benefits organizations that must adhere to other regulatory standards like HIPAA or GDPR. It allows for a tailored compliance strategy that fits unique operational environments without compromising security. However, these customized controls require approval and annual risk analysis documentation to ensure they meet the stringent standards set by PCI DSS.

As we navigate these changes, it's clear that preparation and understanding are key to a smooth transition. By focusing on these initial steps, businesses can ensure they're compliant and foster a secure and trustworthy environment for their customers.

Ecommerce PCI compliance platform types

The question is not whether you need to achieve PCI compliance. You do. The question is: What kind of platform should you use to become PCI compliant?

Just like there are different options for creating, managing, and hosting websites online (e.g., self-hosted, dedicated, or shared), there are also different software options that will help your ecommerce store become PCI compliant.

What you choose will depend on your store size, expertise, budget, IT staff, and goals.

Here are the three main ecommerce PCI compliance platform types and a closer look at how you can be compliant on all three:

Commercial software
Open-source software
Hosted software as a service (SaaS)

Certified commercial PCI software

Buying a certified commercial PCI software is like opting for dedicated hosting for a website.

Instead of paying a hosting company to help you with all the ins and outs of becoming PCI compliant, you buy and maintain your own hardware and commercial software license. With this option, you’re solely responsible for licensing and certifying your store, but commercial PCI software will make it easier.

These certified commercial PCI solution providers are typically reserved for huge and widely recognized ecommerce stores with:

Level 1 ecommerce compliance
Well over six million transactions annually
Robust IT support
Big budgets to install, customize, and maintain the ecommerce store and PCI compliance requirements\n

The bottom line: If you’re growing your new ecommerce store, don’t have millions of transactions to manage, or are looking into PCI compliance for the first time, this option is overkill and not for you.

Open-source software

Open-source software for PCI compliance is like WooCommerce, where you have access to open-source codes and can make your own customizations to enhance security.

With this option, you will pay for your hardware, but you don’t have to worry about paying a software license fee.

Open-source software is a good solution for large ecommerce stores with dedicated development and compliance teams who write their own code and can take full advantage of the customization and flexibility offered by open-source solutions. In other words, an open-source software will allow your ecommerce store tech-savvy and PCI expert staff to move forward with coding, and take full responsibility of continuous building and maintenance of the necessary compliance controls.

The bottom line: If you are creating a highly customized ecommerce store with complex and unique requirements, but have ample budget, resources, and in-house expertise to meet all of the 300+ PCI DSS requirements , then open-source may be for you.

Hosted software as a service (SaaS)

Using a hosted PCI compliance SaaS solution is like building a site on a shared hosting platform.

Most of the big ecommerce platforms (like Shopify) provide hosted SaaS as part of their service. In other words, you can create a Shopify store and don’t have to worry about the security of your site—because PCI compliance is built into Shopify.

“Most ecommerce stores typically don’t need to do anything specific to become PCI compliant simply because if the store is hosted on a platform like Shopify, they will automatically be PCI compliant,” says Parekh.

It is critical to remember, however, that no matter which option you choose (even hosted), you’ll still have to fill out a self-assessment questionnaire if you’re a Level 2–4 merchant. If you’re a Level 1 merchant, you’ll have to fill out the questionnaire and a ROC. Therefore, there are shared compliance responsibilities, but a PCI-compliant platform like Shopify takes care of the most challenging, resource-intensive, and expensive ones on behalf of the merchant.

The bottom line: If you’re building an ecommerce store on a commerce platform like Shopify, this option is for you. You don’t have to worry about spending money on hardware, licenses, or dedicated engineering and compliance teams, and you’ll remain PCI compliant with little effort.

Why being PCI compliant is important for your business

Hackers are everywhere in today’s high-tech world, and they are becoming savvier every day. In 2022, the Internet Crime Complaint Center (IC3) received nearly 801,000 cybercrime reports, with financial damages soaring past $10.3 billion. Despite a slight decrease in the number of complaints, down by 5% from the previous year, the financial impact of these crimes surged by an astonishing 49%.

As the internet grows and hackers get better at what they do, it’s critical for ecommerce companies to take action on heightening security.

The way to secure sensitive data and continue to earn the trust of consumers and payment networks is by following PCI compliance standards.

“Adhering to PCI SSC standards ensures you’ve implemented the best practices to protect against cyber threats and reduce cyber risks impacting retail organizations,” says Parekh. “Furthermore, if you can’t prove that your ecommerce store is PCI compliant, many credit card payment schemes won’t allow you to transmit, store, or even process credit card transactions.”

Above all, growing an ecommerce business requires you to earn the trust of your customers—and you can’t do this if their data isn’t safe with you.

Keep your site secure with Shopify

When push comes to shove, the onus is on you to protect your customers’ credit card information and any other sensitive data.

Unless you are a highly skilled compliance-savvy developer with experience in securing ecommerce sites and making sure they are 100% PCI compliant, the best way to protect customer data is with a little help.

In other words, it’s best to rely on help from a hosted SaaS tool (ahem, Shopify) to keep your customers’ credit card data safe. When you set up your ecommerce store with Shopify, you can rest assured it will be PCI compliant.

PCI Compliance FAQ

What does PCI DSS compliance mean?

PCI DSS Compliant means your company is following the Payment Card Industry (PCI) Data Security Standard (DSS) and has fulfilled all of the requirements to keep customer data safe.

PCI DSS is a set of requirements designed to ensure the security of credit card information stored on and processed by computer systems. These standards were created by the payment industry to help prevent fraud and improve data security.

Does my ecommerce site need to be PCI compliant?

PCI DSS compliance is a requirement for ecommerce stores that keep credit card information, handle any financial transactions, or accept payments using credit cards, debit cards, prepaid cards, and other forms of payment. If you don’t comply, you risk being fined or having your account shut down. Worse, you risk losing your customers’ trust and ruining your company reputation.

PCI compliance affects every aspect of your business, so it’s critical to be PCI compliant.

Am I required by law to become PCI compliant?

You are not required by federal law to have a PCI-compliant website. However, some states do require ecommerce stores to be PCI compliant. It’s worth researching your state or regional government’s requirements to find out what the laws are and how they apply to your business. Additionally, merchants who fail to meet PCI DSS requirements risk being denied payment processor services from their acquirer or acquiring banks due to non-compliance.

What are the costs of becoming PCI compliant?

The costs of PCI compliance depend on several factors:

\nSmall Businesses: Starting at $300 annually, including a Self-Assessment Questionnaire (SAQ) and vulnerability scans.
\nLarger Enterprises: Over $70,000 for full PCI DSS assessments, with onsite audits costing about $40,000, plus additional costs for scans, testing, and training.
\nAudit Costs: A Qualified Security Assessor (QSA) audit averages $15,000, varying with business complexity.
\nNon-Compliance Costs: Fines and increased fees for non-compliance can far outweigh compliance costs.
\nAnnual Maintenance: Ongoing compliance costs range from $5,000 to $200,000, based on size and complexity.

Where can I find more information on becoming PCI compliant?

This article is a high-level review of how to become PCI compliant. However, if you are going the DIY route to become PCI compliant, the best thing to do is review the official PCI DSS requirements.

What are the 4 PCI Standards?

The 4 PCI Standards are:

PCI DSS (Payment Card Industry Data Security Standard)
PCI PTS (Payment Card Industry PIN Transaction Security)
PCI P2PE (Payment Card Industry Point-to-Point Encryption)
PCI SSF (Payment Card Industry Software Security Framework)

What are the PCI compliance guidelines?

The Payment Card Industry Data Security Standards (PCI DSS) are a set of guidelines established by major credit card companies to ensure the security of credit card transactions. These guidelines include:

Maintain a secure network: Install and maintain a firewall to protect cardholder data.
Protect cardholder data: Encrypt sensitive data to prevent unauthorized access.
Maintain a vulnerability management program: Regularly scan systems and networks for vulnerabilities and take necessary actions.
Implement strong access control measures: Restrict access to cardholder data on a need-to-know basis.
Regularly monitor and test networks: Monitor and test security systems and processes, including tracking and monitoring all access to network resources and cardholder data.
Maintain an information security policy: Maintain a company-wide information security policy, including training for employees and contractors.

Illustration by Melanie Peters

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Ashley R. Cummings is a professional freelance writer, specializing in commerce, marketing, and SaaS. Connect with her on Twitter!

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