E-Commerce Brands Report Drop in Conversion After DPDP Enforcement
E-commerce brands in India are reporting a noticeable drop in conversion rates following the enforcement of the Digital Personal Data Protection (DPDP) Act. According to recent reports, reduced access to third-party data and stricter consent requirements have disrupted targeting, retargeting, and ad efficiency across major online marketplaces.
Key Developments
The DPDP Act has restricted the use of cross-site tracking, third-party cookies, and behavioural data without explicit user consent.
As a result, the accuracy of targeted advertising has declined, with industry estimates suggesting short-term drops in targeting efficiency and lower conversion rates across paid channels.
Consent mechanisms such as age verification, opt-in prompts, and permission management have added friction to the user journey, increasing drop-offs during browsing and checkout.
E-commerce platforms are also seeing pressure on ad-led revenue models, particularly in programmatic advertising ecosystems that rely heavily on third-party data signals.
Industry & Expert Context
The DPDP Act represents a structural shift in India’s digital economy toward consent-driven data usage, aligning with global privacy frameworks.
Industry experts note that similar transitions in other markets initially caused performance slowdowns before stabilising around first-party data strategies.
Large platforms and brands are now investing in customer data platforms (CDPs), consent management platforms (CMPs), and privacy-safe analytics to rebuild visibility.
Digital marketing observers, including Digilogy, which tracks privacy-led changes across performance marketing and analytics, note that the adjustment phase is forcing brands to rethink funnel design and attribution models.
Why This Matters
For e-commerce brands, reduced conversion efficiency directly impacts revenue, customer acquisition costs, and return on ad spend.
For consumers, stronger consent requirements increase transparency and control over personal data, though at the cost of a more interrupted browsing experience.
For the digital advertising industry, the DPDP Act challenges long-standing performance tactics and accelerates the shift toward trust-first, data-minimal marketing systems.
What Happens Next
In the near term, brands are expected to prioritise first-party data collection through loyalty programs, email subscriptions, and authenticated user journeys.
Marketing teams are likely to place greater emphasis on content, owned channels, and contextual advertising to offset targeting limitations.
Over time, experts anticipate a stabilisation phase where compliant brands regain efficiency by optimising consent-based audiences and privacy-safe measurement frameworks.
Final Takeaway
The conversion drop following DPDP enforcement highlights a transition phase rather than a permanent decline for e-commerce marketing. While short-term disruption is evident, the long-term direction points toward sustainable, trust-led growth models.
Digilogy tracks these data-privacy and performance marketing shifts closely to understand how evolving regulations reshape digital commerce strategies. For ongoing insights, visit the Digilogy News page.
