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The GDPR (General Data Protection Regulation) is coming into effect  on the 25^th of May and all manner of businesses are trying to work out what it means for them. From nurseries to online retailers, businesses are working hard to ensure they are compliant.

Once GDPR comes into force, it will be the most wide-ranging data privacy law on the planet, and it will affect how organisations big and small store, collect and handle data.

So, let’s take a look at how GDPR will impact e-commerce.

More Rights

When GDPR comes into full effect, European citizens will have many more rights when it comes to their personal data. They will have the right to correct, restrict, access and delete any data that a company may hold on them.

If you’re using data for advertising and marketing purposes, then users must specifically give their consent for this. Any business must list all and any third parties that may have access to a customer’s data. For big data and targeted marketing, this could mean huge changes in how things are done.

Alongside this comes the ‘right to be forgotten’. This translates to giving customers the enshrined right to delete any information a company may hold on them, in full and with no exceptions. And this process must be easy to do and clearly defined.

New Responsibilities

For those retailing via e-commerce, all of this means new responsibilities to customers and putting their data policies in line with GDPR.

In the case of a data breach, for example, online retailers need to have procedures in place and ready to do. They must report the breach to the ICO (Information Commissioner’s Office) and any affected customers within 3 days. For smaller concerns this may be a huge undertaking, so it is vitally important to be prepared ahead of time.

Large fines are also part of GDPR, levied against businesses that don’t store their data securely or misuse it. 4% of annual revenue is one punishment for failure to comply, which is a huge amount for small and big concerns.

Large e-commerce platforms like Shopify are already hard at work ensuring they are compliant, but individual merchants are still responsible for collection and safe storage of customers’ data.

For those worried about the new law, and wondering if they are compliant, the ICO has put together an online resource on how to comply and get a handle on this new era of data protection.

The impending doom of Brexit is still hanging over many SMEs heads, particularly with regards to expanding and trading globally and boosting profitability.

Recent figures released by accountancy firm Moore Stephens have revealed that only 6% of SMEs that were polled felt that the government is listening to and taking on their concerns about leaving the EU.

This statistics suggest that the Government have their work cut out for them when it comes to convincing SMEs that leaving the EU will be beneficial to them.

So, what are the benefits and drawbacks of leaving the EU for SMEs?

Benefits

The chance to expand into more vibrant marketplaces

Some think that Brexit will enable UK businesses to diversify into make dynamic markets operating outside of the EU. In China and India for example, growth rates are still strong and significant even despite recent slowdowns in trading.

More talented workforce

Brexit could help your business in terms of accessing a wider and more talented staff pool. At present, the freedom-of-movement obligations mean that there are limits on non-EU immigration. Liberating these obligations could mean that it would be easier for your SME to recruit high-calibre staff from non-EU countries.

A reduction in red tape

A lot of the EU regulations that are currently in place burden SMEs, particularly in terms of time consuming bureaucracy that can impede on innovation and growth. Leaving the EU may mean that the government is in a position to roll back some of these regulations.

Drawbacks

Slowing down of trade within the EU

Membership of the EU means that UK SMEs can export to Europe easily and the lack of import taxes also allows businesses to operate at the same level as companies across the Continent. Leaving the EU would negatively impact on both of these factors.

UK investment

There is speculation from those who are against Brexit that leaving the EU could damage the UK’s reputation as one of the world’s leading financial centres, which could in turn result in a decline in UK investment across the board.

The economy and jobs

Figures from 2000 have revealed that around three million UK jobs are linked to trade within the UK. Exiting from the EU may mean that SMEs will struggle in terms of a lack of EU residents moving to the UK in pursuit of work.