Building a First-Party Data Strategy for Ecommerce
On this page
The ground has shifted under ecommerce marketing, and a lot of brands haven’t fully adjusted. For years, much of digital marketing ran on third-party data — tracking users across the web with cookies, building ad audiences from that cross-site behavior, targeting people based on data gathered all over the internet. That era is ending. Third-party cookies are being deprecated, privacy regulations are tightening, platform changes have curtailed cross-site tracking, and the easy targeting of the past is harder and less reliable than it was. The brands that thrive in this new landscape are the ones building on first-party data — the information customers share directly with you and the behavior on your own properties — as the foundation of their marketing.
First-party data isn’t just a defensive response to losing third-party tracking; it’s a better foundation, because it’s data you own, that’s accurate and consented, and that nobody can take away with a policy change. Building a deliberate first-party data strategy is one of the more important and future-proof things an ecommerce brand can do. Let me explain what first-party data is, why it matters more now, how to collect and use it, and how to do it responsibly — because the privacy dimension is inseparable from the strategy.
First-party data versus the alternatives
Quick definitions, since the distinction is the whole point. First-party data is data you collect directly from your own customers and their interactions with your own properties — their purchases, the behavior on your store, the email and SMS they engage with, the information they give you directly. It’s yours, gathered through your direct relationship with the customer. Third-party data, by contrast, is data gathered by others (often tracking users across many sites) and used for targeting — the cross-site behavioral data that powered a lot of past ad targeting and that’s now declining.
There’s also a useful term, zero-party data, for information customers intentionally and proactively share with you — their preferences, intentions, and characteristics, volunteered (through a quiz, a survey, a preference center) rather than inferred from behavior. Zero-party data is especially valuable because it’s explicit and consented — the customer told you directly. The trend is clear: third-party data is declining and unreliable, while first-party and zero-party data — the data you gather directly through your own customer relationships — is the durable, owned, accurate foundation for the future. So a first-party data strategy is about systematically building, owning, and using the data your direct customer relationships generate, rather than relying on the eroding third-party tracking of the past.
Why it matters more now
The urgency comes from the convergence of several shifts. Third-party cookies, long the backbone of cross-site tracking and targeting, are being phased out, undermining the targeting that relied on them. Privacy regulations (and platform privacy changes) restrict tracking and require consent, further limiting third-party data. The accuracy and availability of third-party targeting has degraded. And customers increasingly expect and demand privacy. Together, these mean the old model of relying on third-party data for targeting and marketing is becoming less viable, less accurate, and less acceptable.
In this environment, first-party data becomes the foundation, for several reasons. It’s owned — you control it, and no policy change or cookie deprecation takes it away. It’s accurate — gathered directly from your real customers, not inferred across the web. It’s consented — collected through your direct relationship, with the customer’s awareness. And it’s increasingly the basis for what third-party data used to do — for instance, your first-party customer data can power ad targeting (uploading your customer segments to build lookalike audiences) more reliably than declining third-party tracking. So the brands with rich first-party data are positioned to keep marketing effectively as third-party data erodes, while those that relied on third-party tracking face a harder, less reliable landscape. First-party data is both the response to the changing landscape and a better foundation in its own right, which is why building it deliberately matters more now than ever.
What first-party data you already have
Most stores have more first-party data than they realize, scattered across their tools. You have purchase data (what customers bought, when, how much, how often) — rich behavioral information from your transactions. You have account data (the customers who created accounts and their details). You have your email and SMS subscribers and their engagement (a core owned asset, as discussed in the Klaviyo context). You have on-site behavior (what people browse and do on your store). You may have survey responses, reviews, loyalty program data, and support interactions. All of this is first-party data — generated through your direct customer relationships, owned by you.
The opportunity is twofold: collect more of it deliberately, and use what you have more effectively. Many stores sit on substantial first-party data that’s siloed across tools and underused — purchase data in Shopify, engagement data in their email platform, behavior data in analytics, none of it fully connected or activated. So a first-party data strategy starts with recognizing the data you already have, then systematically expanding and, crucially, using it. The data is an asset you’re likely underexploiting; the strategy is about building it deliberately and putting it to work.
How to collect more first-party data
Beyond what you passively gather, you can deliberately collect more, especially the valuable zero-party data customers volunteer. Email and SMS capture is foundational — growing your subscriber list (tastefully, as discussed) builds an owned, directly-reachable audience and the engagement data that comes with it. Encouraging account creation (post-purchase, with clear value) captures more customer data and relationship. Post-purchase surveys gather valuable zero-party data — asking how they found you, why they bought, their preferences. Quizzes and preference centers let customers volunteer their preferences and characteristics (great zero-party data that also improves their experience). Loyalty programs (where they fit) gather engagement and preference data. And every direct interaction — reviews, support, feedback — is a chance to learn more about your customers.
The principle is to create value-exchange opportunities where customers share data because they get something worthwhile in return — a better experience, relevant recommendations, a reward, useful content. Zero-party data especially comes from customers willingly telling you about themselves when there’s a good reason to (a quiz that gives them tailored recommendations, a preference center that improves what they receive). So deliberately build mechanisms — capture points, surveys, quizzes, accounts, loyalty — that grow your first-party and zero-party data through genuine value exchange, rather than just passively collecting what comes. The brands with the richest first-party data are the ones actively, respectfully building it through value-exchange, not just hoping it accumulates.
Using first-party data
Collecting data is pointless if you don’t use it, and first-party data powers a lot of what makes modern ecommerce marketing effective. It powers personalization — relevant recommendations and tailored experiences based on what you know about customers (as discussed in the personalization context, first-party data is the foundation of personalization as third-party tracking declines). It powers lifecycle marketing — the segmented, behavior-triggered email and SMS flows that drive repeat revenue, built on your first-party purchase and engagement data. It powers ad targeting — using your first-party customer segments to build lookalike audiences and retarget, which is increasingly how to target effectively as third-party tracking erodes. It informs product and merchandising decisions — what your customers actually buy, want, and respond to. And it deepens customer relationships — knowing your customers lets you serve them better.
The unifying point is that first-party data is the fuel for personalization, lifecycle marketing, effective ad targeting, and customer understanding — the engines of ecommerce growth — and increasingly the only reliable fuel as third-party data declines. So the value of building first-party data is realized in activating it across these uses. A brand with rich, well-used first-party data can personalize, market, target, and decide far more effectively than one relying on eroding third-party data or sitting on siloed, unused first-party data. The strategy isn’t just to collect — it’s to collect, unify, and activate, putting your owned data to work across your marketing and decisions.
The unification challenge and the CDP question
A practical challenge: first-party data is often siloed across tools (Shopify, email platform, analytics, loyalty, support), which limits its value — you can’t fully personalize or target if the data is fragmented. So part of a mature first-party data strategy is unifying the data, getting a connected view of your customers across your systems, so it can be activated effectively. This is where integration (connecting your tools so data flows) matters, and where, for larger operations, a Customer Data Platform (CDP) — a system that unifies customer data from across your tools into a single view for activation — comes in.
Do you need a CDP? For smaller and mid-sized brands, often not — much of the value comes from your email platform (which already unifies a lot of first-party data and activates it) and good integration between your core tools, without a dedicated CDP’s cost and complexity. CDPs make more sense for larger, more complex operations with many data sources and sophisticated activation needs. So don’t assume you need a CDP to have a first-party data strategy — many brands build effective strategies on their email platform plus good integration. The unification matters; the specific tooling to achieve it should match your scale and complexity, with a CDP being a heavier solution for larger operations rather than a default. Match the unification approach to your needs, as with everything.
The privacy dimension is inseparable
First-party data and privacy are two sides of the same coin, and handling privacy well is essential to the whole strategy, not an add-on. You’re collecting and using customer data, which must be done responsibly: with transparency (customers knowing what you collect and why), genuine consent, respect for the privacy customers increasingly expect, and compliance with applicable regulations. The value exchange framing matters here — customers share data when they trust you’ll use it to serve them, responsibly, and not abuse it. Get the privacy and trust right, and customers willingly share data because the relationship is fair; get it wrong (collecting excessively, using data in ways that feel invasive, mishandling it), and you breach the trust the whole strategy depends on.
So privacy isn’t a constraint on your first-party data strategy; it’s foundational to it. The brands that build first-party data well do it in a way that respects and builds customer trust — transparent, consented, value-exchanging, compliant — which both meets obligations and makes customers comfortable sharing more. This is also a competitive advantage in a privacy-conscious era: brands that handle customer data respectfully earn the trust that makes customers willing to share, while those that don’t face resistance and risk. Build your first-party data strategy on a foundation of responsible, transparent, trust-building data practices, and it’s both effective and sustainable; build it carelessly, and you undermine the trust that makes it work.
The connection to AI
Worth noting because it ties this cluster together: first-party data is the fuel for the AI applications discussed elsewhere — AI personalization, AI forecasting, AI-driven marketing all run on data, and increasingly that means your first-party data as third-party sources decline. So building rich, clean, well-organized first-party data isn’t just for traditional marketing; it positions you to use AI effectively, since AI’s value depends on the data feeding it. The brands building strong first-party data foundations now are also building the foundation for AI-driven personalization, forecasting, and marketing. First-party data strategy and AI readiness are deeply connected — the data foundation serves both, which is another reason building it deliberately is a high-leverage, future-proof investment.
A simple framework: collect, unify, activate
If the topic feels sprawling, it reduces to three steps you can organize your strategy around. Collect: deliberately build your first-party and zero-party data through value-exchange mechanisms — email and SMS capture, accounts, surveys, quizzes, loyalty, and learning from every interaction — rather than passively accumulating it. Unify: bring the data together from its silos (Shopify, email, analytics, loyalty, support) into a connected view, through good integration between your tools, so it can actually be used (with a CDP only if your scale warrants one). Activate: put the unified data to work across personalization, lifecycle marketing, ad targeting, and product decisions, which is where the value is realized.
Most stores are uneven across these three. Many collect reasonable data but never unify it (it stays siloed) or never fully activate it (it sits unused). Some don’t collect deliberately enough. Auditing yourself against collect-unify-activate shows you where your gaps are: are you gathering enough first-party data, is it connected, and are you actually using it? Strengthening the weakest of the three usually delivers the most value. The framework keeps an otherwise sprawling strategy concrete and actionable — you’re always working on collecting more, unifying better, or activating more fully, and progress on any of the three improves your position. Treat first-party data as a collect-unify-activate discipline you steadily build, and the strategy stops being abstract and becomes a clear, ongoing program.
Owning your data is a competitive edge
It’s worth ending on the strategic upside, because first-party data is easy to frame purely defensively (a response to losing third-party tracking) when it’s also a genuine competitive advantage. The brands building rich, well-used, responsibly-handled first-party data are accumulating an owned asset that compounds and that competitors can’t replicate or take away — a deep understanding of their customers, the ability to personalize and market effectively, and the trust that comes from handling data well. As third-party data erodes and everyone faces the same harder targeting landscape, the brands with strong first-party data foundations have an edge that widens over time, because the asset compounds with every customer interaction.
This reframes first-party data from a chore forced by privacy changes into a strategic investment in a durable, owned, compounding advantage. The brands that recognize this and build deliberately now are positioning themselves to outcompete those still reliant on the eroding third-party model, both in marketing effectiveness and in the customer trust that responsible data practices earn. In a landscape where third-party data is declining for everyone equally, your first-party data is one of the few data advantages you can actually build and own — which is exactly why a deliberate strategy to build it is among the more valuable, future-proof things you can invest in. It’s not just defense against losing third-party tracking; it’s offense, building an owned asset that compounds into a lasting edge.
The bottom line
The data landscape has shifted decisively: third-party cookies and cross-site tracking are declining, privacy regulations are tightening, and the old model of relying on third-party data for targeting is becoming less viable and less acceptable. First-party data — the information customers share directly and the behavior on your own properties — is the durable, owned, accurate, consented foundation for the future, and zero-party data (what customers proactively volunteer) is especially valuable. Most stores already have substantial first-party data (purchases, accounts, subscribers, behavior, reviews, loyalty) that’s siloed and underused, so the strategy is to recognize it, collect more deliberately through value-exchange mechanisms (email/SMS capture, accounts, surveys, quizzes, loyalty), unify it for a connected customer view (via integration, and a CDP for larger operations that need one), and activate it across personalization, lifecycle marketing, ad targeting, and product decisions. Throughout, handle privacy responsibly — transparency, consent, value exchange, compliance — because privacy and trust are foundational to the strategy, not constraints on it. And recognize that first-party data is also the fuel for effective AI, tying your data strategy to your AI readiness. Build a deliberate first-party data strategy and you’re positioned to market effectively as third-party data erodes, to use AI well, and to deepen customer relationships on a foundation of owned, accurate, consented data — one of the more important and future-proof investments an ecommerce brand can make.
Frequently asked questions
What is first-party data and why does it matter now?
First-party data is information you collect directly from your own customers and their interactions with your properties — purchases, account data, email/SMS engagement, on-site behavior, survey responses. It matters more now because third-party cookies and cross-site tracking are declining, privacy regulations are tightening, and the old targeting model is becoming less viable. First-party data is the durable, owned, accurate, consented foundation for the future — both a response to the changing landscape and a better foundation in its own right.
What’s the difference between first-party and zero-party data?
First-party data is gathered through customers’ interactions with you (purchases, behavior, engagement), partly inferred from what they do. Zero-party data is information customers intentionally and proactively share — their preferences, intentions, and characteristics, volunteered through quizzes, surveys, or preference centers. Zero-party data is especially valuable because it’s explicit and consented — the customer told you directly, rather than you inferring it from behavior.
How do I collect more first-party data?
Deliberately, through value-exchange mechanisms: grow your email and SMS list (tastefully), encourage account creation with clear value, run post-purchase surveys and quizzes (great for zero-party data), use preference centers and loyalty programs where they fit, and learn from every direct interaction. The principle is to create opportunities where customers share data because they get something worthwhile in return — a better experience, relevant recommendations, a reward — rather than just passively collecting what accumulates.
Do I need a Customer Data Platform (CDP)?
Often not, especially for smaller and mid-sized brands. Much of the value comes from your email platform (which already unifies and activates a lot of first-party data) plus good integration between your core tools, without a dedicated CDP’s cost and complexity. CDPs make more sense for larger, complex operations with many data sources and sophisticated activation needs. The unification of your data matters; the specific tooling should match your scale — a CDP is a heavier solution for larger operations, not a default requirement for a first-party data strategy.