By Rakesh Raghuvanshi, Founder and CEO, Sekel Tech
India’s e-commerce sector makes for a compelling story that talks about how it is surging ahead of global competition backed by strong digital literacy and smartphone penetration. Media reports back the narrative indicating how India reached about $60 billion in GMV, with over 270 million online shoppers for 2024-25. This makes the Indian e-commerce business the second-largest online shopper base globally. But this boom is also faced with a data security challenge. The safeguarding of sensitive customer information. Personal details, payment credentials, and transaction histories are now prime targets for cybercriminals, particularly during peak shopping periods such as festive seasons, when high traffic and lowered consumer caution make systems vulnerable.
To quote an IBM research report, the average organisational cost of a data breach for India is Rs 220 million in 2025. Of this data, phishing and compromised credentials became the top attack vectors affecting data privacy, confirming that cyberattacks during festive times targeted personal and payment data. While this forms the basis for data security no longer being a technical concern, it also highlights how it has now assumed the strategic structure that could determine the very success or failure of India’s e-commerce business story.
Building customer trust
E-commerce business’ build their fortune and future on customer trust. That is imperative for their success because online retailers have access to with highly sensitive customer information, and even a single breach can irreparably damage this trust. There is little doubt that a brand with breached data will not find value among customers.
This illustrates a direct link between robust security practices and market growth making sure that customer data stays protected and not considered merely a legal obligation. It is a vital component of nurturing long-term business relationships and brand loyalty.
Risk, Implications and Compliance
Data breaches also carry significant financial implications for brands and beyond immediate losses due to fraud, hefty regulatory fines, costly litigation, and prolonged operational disruptions can make life tough. An often-underestimated asset, business reputation, can be severely blown apart, thus affecting customer confidence and investor sentiment in the absence of a thorough understanding of risk and implication. As part of a competitive market where trust and reliability drive choice, the fallout of weak cybersecurity systems can be devastating and long-lasting.
The Digital Personal Data Protection Act: The passing of India’s Digital Personal Data Protection (DPDP) Act, 2023 by Parliament saw the start of a new era of accountability for businesses handling critical consumer information. The law has spelt out the framework pertaining to data minimisation, explicit consent, storage limitations, and strict compliance. Any failure to adhere to this means that companies are not merely exposed to financial penalties but will also face legal scrutiny and risk reputational damage. This makes it an important aspect of business strategy and not an option.
Borth domestic and foreign investors consider data security before putting in their money. Protection against cyber crimes and staying in compliance to stated global standards is important for investors. Only Indian e-commerce firms which align with the stringent data protection protocols can look for a competitive edge. Even as it is appealing to both investors and global consumers, it also prepares brands for participation in foreign markets.
A Collective Responsibility
Businesses and consumers alike contribute to a safer digital ecosystem. Data security challenges faced by E-commerce companies requires a multi-pronged approach. An approach that enhances technological safeguards, includes regular security audits, and training for employees to recognise and respond to threats. Consumers, too, need to exercise vigilance. The scrutiny of privacy policies and staying alert to phishing or social engineering attacks will need the fostering of a culture of security-conscious behaviour.
Finally, the trajectory of India’s e-commerce sector is largely defined by how well businesses anticipate and respond to evolving cyber threats. There is more beyond compliance and technical safeguards, and data security is emerging as a marker of corporate responsibility. It lastly reflects how deeply a company values its customers and their interests as well. Those businesses that take the lead in protecting consumer data with advanced technology solutions, simulating risk situations, and communicating openly can earn genuine trust. Data security is about defence but also about leadership. A brand that treats securing data as a shared responsibility with their customers will define the next chapter of India’s digital economy.