While third-party cookies were generally created by ad companies to follow users around the internet, tracking and data-mining their movements to any domain that had partnered with these advertisers, first-party cookies live on single domains.

Think of them as cookies you baked just for your own customers. Your online shoppers take your fresh, first-party cookie as they come through the virtual doors and keep it with them as they shop and ultimately leave. No other brand has access to these cookies; they are yours and yours alone. So while you know that Emily browsed a few sundresses and wide-brimmed hats across your website, none of your competitors know anything about what Emily’s been up to on your domain.

In essence, first-party cookies are really what cookies were ostensibly invented for: to enhance a customer’s experience with one brand. It’s so they don’t have to re-enter their data each time they visit, and so they can get better service from brands they trust and have a real relationship with.

Third-party cookies were invented to chase customers around the internet and show them the ads of the highest bidder. “We saw you click on Nike shoes, so here are similar Reeboks because Reeboks paid more than Nike in the last two seconds while this ad space loaded. You’re welcome!”

And because third-party cookies have been considered non-essential, the result has been that they are easy to block and delete by both users and web browsers. For example, they are blocked on Safari by default; yes, even Safari on iPhones.

On the other hand, most users and browsers are happy to allow first-party cookies. Since they are domain specific, they only have upside for both parties by making the relationship between customers and brands feel seamless and personal.

As the curtain closes on third-party cookies, first-party data is taking center stage by storm. The necessity for companies to focus on their first-party data strategy is clear: it offers the most reliable, ethical, and sustainable way to understand consumer behavior and preferences in this new privacy-focused digital landscape.

For online retail brands, the benefits of harnessing first-party data extend far beyond compliance with these new privacy regulations. Here's why:

Ultimately, every retailer is currently being forced to rely more on first-party data because the other option will be going extinct next year… unless Google drags their feet again. And yes, let’s be honest here: Google’s empire is built on ads. So it will probably have a trick up its sleeve to somehow target people with ads even without third-party cookies. But no retail brand can rely on Google to just “figure it out” for them.

Right now, the use of first-party data aligns with the principles of modern online clienteling, which seeks to replicate the personalized experience of in-store shopping in the digital realm. Retail brands can utilize first-party data to understand each customer's unique journey, personalize interactions, and make each touchpoint feel exclusive. This approach enhances customer satisfaction and loyalty, driving higher conversion rates and boosting overall brand value; and it’s the clearest path to sustainability for your business in the coming years.

There’s a reason why Endear shows an average ROI of 64X the cost of a subscription: our CRM leverages your first-party data to the max in order to turn casual shoppers into brand loyalists.