E-commerce

Microsoft Dynamics 365 Commerce

Microsoft Dynamics 365 Commerce offers a scalable e-commerce solution designed to help merchants sell products and services online. Its feature set includes customizable storefronts, multi-currency support, automated tax calculations, and advanced shipping options. Microsoft Dynamics 365 Commerce integrates with leading payment gateways, marketing platforms, and fulfillment services. Built-in analytics and reporting tools help merchants track performance, optimize conversions, and make data-driven.

Overview

What does Microsoft Dynamics 365 Commerce do?

Overview: what is Microsoft Dynamics 365 Commerce

Microsoft Dynamics 365 Commerce is Microsoft's omnichannel commerce platform combining online storefronts, in store point of sale, and call center capabilities. It runs on Microsoft Azure, uses Microsoft Entra ID (formerly Azure AD) for identity, integrates with the Power Platform for automation, and ships with Application Insights telemetry. Merchants use it to manage products, pricing, promotions, checkout, fulfillment, and customer profiles across all channels.

Data processing: what Dynamics 365 Commerce collects

The platform processes identifiers, contact information, billing and shipping addresses, payment tokens, order history, cart contents, browsing behavior, device and IP data through Application Insights, and authentication events via Microsoft Entra ID. Customer Insights extensions enable behavioral profiling and segmentation. Optional Microsoft Clarity integration captures session recordings and heatmaps. Payment data flows through certified PCI DSS gateways.

International transfers and the EU US Data Privacy Framework

Microsoft is a US headquartered controller processor. Personal data may be transferred to the United States and other Microsoft global facilities. Microsoft is self certified under the EU US Data Privacy Framework, the UK extension, and the Swiss US framework. Standard Contractual Clauses are included in the Microsoft Product Terms and Data Protection Addendum. Customers selecting an EU region benefit from the Microsoft EU Data Boundary commitment for core customer data, although some telemetry and identity flows may still cross borders.

Legal basis and consent under GDPR

Strictly necessary cookies and processing for cart, checkout, payment, security, and anti forgery rely on Article 6(1)(b) GDPR (contract) and Article 6(1)(f) (legitimate interest in fraud prevention). Analytics, personalization, behavioral profiling, marketing pixels, and Clarity session recordings require prior opt in consent under Article 6(1)(a) GDPR and Article 5(3) of the ePrivacy Directive. Consent must be specific, informed, granular, and revocable.

Implementation checklist for GDPR compliance

Sign the Microsoft Data Protection Addendum, configure region and EU Data Boundary settings, gate Application Insights and Clarity behind a Consent Management Platform, map subprocessors, document retention for orders and telemetry, implement data subject request workflows using the Microsoft Privacy portal, and run a DPIA covering profiling, payment processing, and international transfers.

Risks and recommendations

Main risks include profiling of shoppers, cross border transfers, dependency on Microsoft as a strategic processor, and PCI DSS scope for payment flows. Recommendations: enforce least privilege in Microsoft Entra ID, disable optional telemetry where not required, document the legitimate interest assessment for fraud tooling, keep customers informed through a clear privacy notice, and monitor advisories from CNIL, BfDI, and the AEPD on Microsoft cloud services.

Compliance

Microsoft Dynamics 365 Commerce and the GDPR

Microsoft Dynamics 365 Commerce is classified as “Preferences”. On a site that targets European visitors, it must only load after the visitor consents, and it must be listed in your cookie policy.

Legal basis
Article 6(1)(b) GDPR for performance of the e commerce contract (cart, checkout, order processing). Article 6(1)(f) legitimate interest for fraud prevention and core security. Article 6(1)(a) consent required for non essential analytics, personalization, marketing, and remarketing cookies (Application Insights, Clarity integrations, advertising pixels)
Risk level
high
Applicable regulations
GDPR, ePrivacy Directive, TTDSG (Germany), LOPDGDD (Spain), CNIL guidelines (France), Schrems II, EU US Data Privacy Framework, PCI DSS for payment processing

Impact assessment (DPIA)

A DPIA is strongly recommended for Microsoft Dynamics 365 Commerce deployments. Key risks: large scale processing of customer purchase data, payment information (PCI DSS scope), behavioral profiling through Application Insights and personalization features, cross border transfers to the US, integration with marketing tools (Customer Insights, Clarity), and use of Microsoft Entra ID identity services. Document lawful basis per processing activity, map data flows including subprocessors, evaluate retention windows for order, telemetry, and profile data, and verify EU Data Boundary configuration where applicable.

Sample text for your banner

This site uses Microsoft Dynamics 365 Commerce to process your orders and improve your shopping experience. Strictly necessary cookies (cart, checkout, security, anti forgery) are always active. With your consent, we also enable analytics cookies (Application Insights, Microsoft Clarity) and personalization features that may involve transferring data to Microsoft in the United States under the EU US Data Privacy Framework and Standard Contractual Clauses. You can withdraw your consent at any time via the cookie preference center.
Cookies and trackers

What Microsoft Dynamics 365 Commerce sets and contacts

Tracking method
Cloud SaaS commerce platform with Azure backend, Microsoft Entra ID (AAD) authentication, Application Insights telemetry, and first party cookies for session, cart, and personalization
Server location
Microsoft Azure global datacenters. Customers may select primary region (EU, US, UK, APAC). Telemetry and identity services may route via US endpoints
Data transferred outside the EU
Microsoft is a US headquartered company. Data may be transferred to the United States and other Microsoft global facilities. Transfers are covered by the EU US Data Privacy Framework (Microsoft is certified) and Standard Contractual Clauses included in the Microsoft Product Terms and DPA. EU Data Boundary commitments apply to core customer data when EU region is selected

Cookies set (6)

NameTypeDurationPurpose
ai_userfirst_party1 yearApplication Insights anonymous user identifier for product telemetry, error tracking, and usage analytics. Requires consent.
ai_sessionfirst_party30 minutesApplication Insights session identifier used to group telemetry events within a browsing session. Requires consent.
msal.session.statefirst_partySessionMicrosoft Entra ID (MSAL) session state cookie used during sign in flows and to validate authentication exchanges. Strictly necessary.
msdyn365___RequestVerificationTokenfirst_partySessionAnti forgery (anti CSRF) token issued by the Dynamics 365 Commerce storefront to protect form submissions. Strictly necessary.
msdyn365___cartfirst_party30 daysPersists shopping cart contents across sessions for the current visitor or signed in customer. Strictly necessary for the e commerce contract.
msdyn365___localefirst_party1 yearStores the visitor selected language and market so that the storefront renders the correct catalog, currency, and pricing. Strictly necessary.

Third-party domains contacted (6)

  • dynamics.com
  • commerce.dynamics.com
  • login.microsoftonline.com
  • dataverse.com
  • applicationinsights.azure.com
  • clarity.ms
Questions

Frequently asked questions about Microsoft Dynamics 365 Commerce

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What cookies does Microsoft Dynamics 365 Commerce set?

Dynamics 365 Commerce sets first party cookies for cart, checkout, session, anti CSRF tokens, and locale. Application Insights adds analytics cookies (ai_user, ai_session). Microsoft Entra ID issues authentication cookies for signed in customers. Optional integrations such as Microsoft Clarity, advertising pixels, and Customer Insights may add further analytics, personalization, or marketing cookies.

Does Dynamics 365 Commerce require user consent?

Strictly necessary cookies (cart, checkout, payment, security, anti forgery) do not require consent. Analytics, behavioral profiling, personalization, Application Insights, Microsoft Clarity, and any marketing pixels require prior opt in consent under Article 6(1)(a) GDPR and Article 5(3) ePrivacy. Consent must be specific, informed, granular, and as easy to withdraw as to give.

What is the legal basis for processing under Dynamics 365 Commerce?

Order processing, cart, checkout, payment, and fulfillment rely on Article 6(1)(b) GDPR (performance of the sales contract). Fraud prevention and core security rely on Article 6(1)(f) (legitimate interest). Analytics, profiling, personalization, marketing, and remarketing rely on Article 6(1)(a) (consent). Each processing activity should be mapped in the record of processing activities.

Does Dynamics 365 Commerce transfer data outside the EU (especially to the US)?

Yes. Microsoft is a US headquartered processor and data may flow to the United States and other Microsoft regions. Transfers are covered by the EU US Data Privacy Framework (Microsoft is certified), the UK extension, the Swiss US Framework, and Standard Contractual Clauses in the Microsoft DPA. Selecting an EU region activates the EU Data Boundary for core customer data, while some telemetry and identity flows may still cross borders.

Do I need a DPIA for Dynamics 365 Commerce?

A DPIA is strongly recommended. The platform involves large scale processing of customer and payment data, behavioral profiling via Application Insights and Customer Insights, optional Microsoft Clarity session recordings, integration with Microsoft Entra ID, and cross border transfers. These factors trigger several DPIA criteria in the EDPB guidelines and the national lists of CNIL, BfDI, and AEPD.

How do I implement Dynamics 365 Commerce GDPR compliantly?

Sign the Microsoft DPA, choose an EU region with EU Data Boundary, gate Application Insights, Clarity, and marketing tags behind a Consent Management Platform, document subprocessors, set retention windows for orders and telemetry, implement data subject requests through the Microsoft Privacy portal, harden Microsoft Entra ID with least privilege and MFA, and run a DPIA.

What are alternatives to Dynamics 365 Commerce?

Alternatives include Shopify, Adobe Commerce (Magento), SAP Commerce Cloud, Salesforce Commerce Cloud, Commerce Tools, and Sylius for European hosting. Each option has its own data flows, hosting locations, and consent considerations. EU based solutions or self hosted deployments can reduce third country transfer concerns but may shift compliance and security work to your team.

How do I update my cookie policy to include Dynamics 365 Commerce?

List each Dynamics 365 Commerce cookie with name, purpose, duration, and category (necessary, analytics, personalization, marketing). Document Microsoft as a processor, name relevant subprocessors, declare transfers to the United States under the EU US Data Privacy Framework and Standard Contractual Clauses, and link to the Microsoft Trust Center and DPA. Provide a granular opt in and a clear withdrawal mechanism.

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