E-commerce retailers have authentication solutions, but are reluctant
All organizations that rely on email as their primary form of communication saw a significant change when Google, Yahoo, and Apple imposed strict email authentication requirements and mandated the implementation of Domain-based Message Authentication, Reporting, and Conformance (DMARC) policies for bulk senders, and Microsoft is set to follow suit. With these giants now controlling a substantial portion of the email ecosystem, these policies will have far-reaching implications across all industries, especially those that rely on email as a communication, marketing, and sales channel.
The good news is that three quarters of ecommerce retailers have adopted DMARC and adapted to these new standards to ensure their communications remain effective and secure. However, the remaining 25% who have not adhered now face a ticking time bomb that could impact their ability to communicate with customers and potentially change their operations.
Because Google and Yahoo have already begun temporarily rejecting non-compliant email traffic, sendersā ability to reach customers and communicate effectively via email is being diminished. Non-compliant retailers who currently use email as a marketing and communications tool may find themselves unable to continue their daily operations, if they havenāt already. Not only do they risk having their messages marked as spam or rejected outright, but they may also face barriers to using email as a communication method due to previous classifications of spam and junk.
As email becomes an increasingly important communication tool, it is imperative for retailers to meet these requirements to secure their communications, maintain web traffic and protect their revenue.
CEO/Co-Founder of EasyDMARC.
Email authentication tools such as DMARC, SPF, and DKIM ensure that emails come from legitimate sources. They verify that an email comes from the domain it claims to represent and ensure the integrity of email communications. At the same time, the risk of phishing attacks is significantly reduced.
With four billion daily email users, the stakes are high. This is especially true when email remains a key tool for business and marketing communications, with 316.6 billion emails sent and received each day worldwide in 2024 ā a number expected to rise to 392.5 billion in 2026.
For retailers, and especially online retailers, the stakes are particularly high; email is not just a communication tool, but a central component of marketing strategies and customer engagement. Even anecdotally, the importance of these emails as a communication channel cannot be overstated. It seems that every retailer has at least one weekly newsletter or āitem updateā to subscribe to, alerting customers to sales, new products, company updates and more. By failing to comply with email authentication requirements, retailers risk losing messages that are essential to keeping their customers āin the know,ā as well as a decrease in the reach and effectiveness of email marketing campaigns.
Consequences of non-compliance
If DMARC is not implemented effectively, retailer domains are also vulnerable to cyberattacks, as spoofing and phishing emails can be delivered unchecked to employee inboxes. If this results in a cyberattack, the damage goes beyond immediate operational disruption; it further erodes customer trust and can have a significant impact on future revenue. Customers expect their data to be safe, and any breach can have long-term negative effects on a retailerās reputation and financial health.
Non-compliant retailers risk significant damage to their customer relationships and brand reputation as trust is eroded by poor communication. When customers donāt hear from a particular retailer, it gives competitors the opportunity to increase their influence. Additionally, when loyal customers realize theyāve missed out on important promotions, it can lead to alienation and loss of customers. Ultimately, failing to engage customers and communicate effectively with them on sales and promotions will have a very real impact on sales, profits, and the bottom line.
There is still time for non-compliant retailers
It is worth stressing that it is not all doom and gloom for e-commerce retailers at the moment. There is still time to get on the right track.
Google and Yahoo introduced their email authentication regulations as a gradual rollout in the first half of this year, giving businesses a wide window to properly implement email authentication tools. Itās worth noting, however, that the email giants are getting increasingly strict with non-compliant traffic ā in other words, the sooner DMARC is implemented, the better.
The Future of Email Authentication in the eCommerce Industry
For retailers, adapting to email authentication requirements is not just an operational adjustment, but a necessary strategic move. In a competitive e-commerce market, finding ways to ensure the security and integrity of communications is essential.
Retailers must fully embrace and adapt to new changes, leveraging the tools and technologies available to maintain customer trust and the effectiveness of their marketing efforts. Those who have already implemented email authentication tools to comply are on the right track; improving their overall security posture while strengthening their strategies and customer relationships.
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