👥 What is zero-party data and why is it crucial for e-commerce businesses?

Key takeaways

• Zero-party data is the information shoppers choose to share with you, for example through guided selling tools, product finders, or quizzes.
• It’s the only data type that tells you why someone buys, not just what they did.
• First-, second, and third-party data are often unreliable because they are based on inferred behavior, and guesswork. 
• Guided selling is one of the easiest ways to collect zero-party data because shoppers share details naturally while getting better product advice.

Zero-party data vs. first-party data and other types of customer data

E-commerce runs on data. Every click, search, and purchase is written to a Customer Data Platform (CDP). Inside that CDP, teams look for marginal gains, which are small and data-driven improvements, that help create a smoother customer journey. This could be a personalized newsletter, sending abandoned cart emails, or retargeting with the help of ads.

The logic seems simple, the more data you collect, the more insights you gain about your customers. The real difference lies in what kind of data you collect and how close it is to the customer who shared it. To understand your customer, and make marginal gains count, you first need to know what kind of data you’re working with.

Zero-party data vs first-party data

Let’s take a closer look at the different types of data available to e-commerce teams and why zero-party data stands out from the rest.

What is zero-party data?

Zero-party data is information a customer chooses to share with you, voluntarily. You can get these customer insights from guided selling tools, quizzes, or product finders. 

For example, a shopper fills out a product finder and selects ‘I prefer skincare products with natural ingredients’. This is zero-party data. It is powerful data because it’s declared (the shopper tells you what they want) and highly reliable. In short, zero-party data removes the guesswork and gives you the why behind purchase decisions.

What is first-party data?

First-party data is observed through behavior. It is information that is generated by your shopper’s own actions on your webshop. This means that this information is not given voluntarily, like zero-party data. You can only collect most first-party data if the shopper accepts cookies.

First-party data includes two main types:

• Behavioral data: Everything your shopper does on your site such as logging in, placing products in the shopping cart, scrolling, filtering, or clicking.
• Transactional data: The outcome of those interactions, such as purchases, returns, or customer service conversations. 

For example, a customer browses different BBQ models, reads a blog about ‘Backpacking in Italy’ and buys a cookbook about pasta. The sequence of actions is first-party data. It’s useful, but still requires interpretation. It tells you what someone did, but not why they did it. That’s the key difference with zero-party data, which gives you the reasoning behind those actions. 

What are other types of customer data 

To understand the full picture, it’s helpful to understand all types of customer data. Second- and third-party data are collected beyond your website. These sources can still be useful, but are often less reliable and harder to control. 

Second-party data

Second-party data is another company’s first-party data. Another company collects it through their own customers and shares or sells it to you. For example, a shopper buys running shoes from a sports retailer, and they share this data with a partnered nutrition brand. That brand can then offer the same shopper a personalized deal on energy gels or supplements. 

Third-party data 

Third-party data is collected by external providers that have no direct relationship to the shopper. For example, an online store runs an ad campaign targeting people who, on other websites, have shown interest in coffee machines. This data can help reach new audiences, but can be unreliable since it is often general and outdated data. 

A quick comparison of zero-party, first-party, second-party and third-party data

Why applying a zero-party data strategy matters more than ever

E-commerce teams today face a data dilemma; privacy rules are tightening, cookies are disappearing, and shoppers move across multiple devices without leaving clear signals. The result? Less reliable data, and fewer ways to personalize experiences.

Third-, second-, and first-party data are all inferred data. Which is data that, as the name suggests, is created without a customer explicitly providing input. Zero-party data is reliable data your customers choose to share directly. These insights form the foundation for meaningful personalization and better product advice. That’s why zero-party data matters more than ever.

3 benefits of zero-party data for online retailers

Most e-commerce data still relies on assumptions. Retailers try to understand customers through clicks, scrolls, and algorithms. But real understanding starts when shoppers share their needs directly. Let’s look at three benefits of zero-party data for online retailers.

1. Understanding customers at a deeper level

Retailers have been stuck with inferred data, because shoppers browse in silence and without telling you why they’re doing it. When the shopping experience becomes more relevant and human (through guided selling or short quizzes), customers share what really matters to them. And in return, you get a clear and meaningful understanding of their needs.

2. Get declared data you don’t have to beg for

Instead of trying to decode hundreds of clicks across drills, screwdrivers, nail guns, and soldering irons, that same shopper answers a few questions in a “Find the right machine for your job” product finder. In seconds, you get zero-party data that tells you he’s a DIYer looking for the right tool to mount a gypsum wall in the bathroom.

Zero-party data turns assumptions into answers. It’s the data customers want to share because it helps them get better advice, faster. And tools like guided selling, product finders, and quizzes make this easy. Customers find the right product quickly, while your business gains immediate access to reliable declared data.

3. Data is no longer based on guesswork

Customers rarely share personal information without getting something valuable in return. And rightly so. In the past, online stores have relied on small incentives, like sharing your birthday in exchange for a discount. But that does not provide you with much information.

Most online stores have access to a lot of behavioral data, but it’s often fragmented and hard to interpret. Shoppers use multiple devices, decline cookies, or don’t log in. This makes it nearly impossible to get a clear view on what the customers want or need. Which means most of your insights end up being guesswork.

Why guided selling is a gold mine for zero-party data

What’s been missing is a real exchange of value for the shopper; relevance. Guided selling provides exactly that. Shoppers answer a few quick questions and receive tailored, meaningful advice in return. They save time and get clarity, while your business gets reliable data. But zero-party data doesn’t collect itself. It requires interaction, and that’s where guided selling comes in.

Guided selling offers customers a short cut to their perfect product. So no more digging through hundreds of products, but a simple selection guide with some easy questions about your use and situation:

• How many times a week are you going to use the e-bike?
• Which area are you going to walk through?
• What type of bath are you looking for a cleaning robot for?
• Do you get warm in bed quickly?

Each answer gives them tailored advice, and gives you high-quality, declared data. It’s the simplest, most natural way to collect zero-party data, by helping customers, while they help you. 

An ideal example of using zero-party data in e-commerce

Curious to learn more about how zero-party data can improve the complete customer journey and your strategy in general? Let’s break it down with some concrete examples. A customer starts your “Find your ideal skincare routine” product recommendation quiz. By using this quiz they share with you:

• Their skin type: sensitive and dry
• Their preference: fragrance-free, plant-based products
• Their main goal: reduce redness and irritation

What used to be dozens of product page visits is now a single, meaningful interaction.
You help them find the right products, and in the process, collect data that’s accurate and ready to use. 

That single interaction does more than improve conversion. You can use this data to personalize follow-up emails, fine-tune recommendations, and build campaigns that actually reflect what your customers care about.

Frequently asked questions about zero-party customer data

Zero-party data is becoming a key part of how e-commerce teams understand and serve their customers. Let’s answer some of the most common questions we hear from e-commerce teams about using it effectively.

What are some examples of zero-party data that are most valuable in e-commerce?

Valuable zero-party data includes the specific needs, preferences, and usage context a shopper shares directly with you. Examples in practice include a shopper needing a coffee machine that brews multiple cups quickly for a small office. Or someone looking for running shoes for a marathon training on asphalt, or wanting an air purifier specifically for a baby’s room. 

As you can see, the context gives you all the insights and you can’t get that from clicks. Shoppers have to tell you.

How can I encourage shoppers to share zero-party data?

The easiest way to collect zero-party data is to make it part of the experience. Guided selling tools, product finders, and short quizzes encourage shoppers to share information naturally. People are happy to provide details when it leads to better guidance. Instead of only asking for data, offer value in return. 

How do I integrate zero-party data into my complete strategy? 

Zero-party data only becomes truly valuable when it flows through the rest of your strategy. With Aiden, every declared data point connects directly to your CRM or CDP, including platforms like Bloomreach and Spotler. 

This gives your team reliable shopper intent you can actually use. Think of powering smarter campaigns, triggering personalized follow-ups, and sharpening your overall e-commerce strategy. It’s the quickest way to turn real customer input into real commercial impact.

Turn customer data into relevance, confidence and conversion

The value of guided selling goes both ways. Shoppers share a few details about their needs and get instant, tailored advice that builds confidence in making the right purchase. In return, your business gains structured, reliable zero-party data that fuels smarter campaigns and higher conversion rates.

It’s not about collecting data for data’s sake, it’s about creating relevance. Every answer becomes the start of a shopping experience that helps your shoppers choose better, and helps you sell smarter.

Get inspired and see how other e-commerce teams are implementing guided selling for improved customer experiences and customer data. Want to see it for yourself? Book a free demo and discover how Aiden's platform is guaranteed to structurally increase your conversion.