Website Cookies Explained: Essential vs Non-Essential for Small Businesses
Would you like to read this article told by Lynnie, our fictional kid character? Jump here.
This article continues our look at data protection with one specific topic: cookies and cookie consent.
Almost every website you visit asks you about cookies. When you run your own site, you are the one who has to ask. In this article, we explain website cookies in plain language: what they are, the difference between essential and non-essential cookies, and what consent your small business website needs.
Note: The information in this article is for general informational purposes only and does not constitute legal advice or a legal opinion. It does not address the specific circumstances of any individual or business. Please have a qualified legal advisor review your own documents.
Website cookies explained: what are cookies?
Cookies are small files that websites save on a visitor’s device. They remember information about the visitor, such as preferences, actions or login status. Their purpose is to make the visitor’s experience smoother and more personal.
For example, a cookie can remember the language you chose on a site, or the items you placed in your shopping cart. Without cookies, you would need to log in again on every page and your cart would empty each time you clicked.
Why cookies need consent
Visitors need to give consent when cookies are placed on their devices for certain purposes. This is one of the two main consent situations for online businesses, alongside collecting email addresses. Which cookies need consent depends on their type.
Website cookies explained: the two main types
Essential cookies
Essential cookies are necessary for basic website functions. They keep visitors logged in, remember items in a shopping cart and make secure checkout possible. They are placed by the website owner, so they are called first-party cookies.
Essential cookies generally do not require consent. Your site simply could not work properly without them.
Non-essential cookies
Non-essential cookies are used for things like tracking and advertising. They are often placed by external services or advertisers to collect data about visitors’ behavior across different sites. Because they come from outside providers, they are called third-party cookies, as explained in the privacy policy article.
Under many regulations worldwide, visitors must be given the choice to opt out of these. In stricter regions, they must actively opt in before such cookies are placed.
First-party vs third-party cookies
The difference is simply who places the cookie. First-party cookies come from the website the visitor is on. Third-party cookies come from external providers embedded on that site, such as advertising networks, social media widgets or some analytics tools.
Third-party cookies are the most tightly regulated, because they can follow visitors across many websites. That is why consent rules focus mostly on them.
Examples of cookies on a small business website
- Shopping cart cookie: essential, first-party. Remembers what a customer added to the cart.
- Login cookie: essential, first-party. Keeps a customer logged in to their account.
- Analytics cookie: often non-essential. Counts visits and shows which pages are popular.
- Advertising cookie: non-essential, usually third-party. Tracks visitors for targeted ads.
- Social media cookie: non-essential, third-party. Placed by embedded share buttons or videos.
What a good cookie banner looks like
Ask for consent in a very visible way, through a pop-up or a clear notice at the top or bottom of the page. The boxes for non-essential cookies must not be pre-checked. Visitors should actively choose what they accept.
Offer clear options, such as “Accept all,” “Reject non-essential” and “Customize.” Link your privacy policy in the banner so visitors can read the details before deciding. Make it just as easy to reject cookies as to accept them.
Website cookies explained: check your website builder’s settings
Most modern website builders include a cookie banner. Check its settings carefully. Make sure the boxes are not pre-checked and that non-essential cookies only load after a visitor accepts them.
If you add new tools, such as an analytics plugin or an advertising pixel, check whether they place new cookies. Update your banner and your privacy policy if they do.
How long do cookies last?
Some cookies disappear when the visitor closes the browser. These are called session cookies. Others stay for days, months or longer, and are called persistent cookies.
Your privacy policy or cookie notice should explain the main cookies you use and roughly how long they last. Many consent tools generate this list for you automatically.
Do you even need non-essential cookies?
Many beginners install tracking tools they never look at. Every non-essential cookie adds to your consent and privacy responsibilities. If you do not use a tool, consider removing it.
When you are just starting out, simple built-in statistics from your platform are often enough to see where visitors come from. You can add more detailed tools later, when your traffic is large enough to make them useful.
Cookies on marketplaces and social stores
If you sell only on a marketplace or through a social store, the platform handles cookies and consent on its own pages. You do not need your own cookie banner there. Your responsibility begins once you send visitors to your own website.
This is another reason marketplaces are a simple starting point for beginners. You can add a website with its own cookie setup later, when your business is ready for it.
Cookies and your marketing
Cookies play a role in advertising, because they help platforms show ads to people who visited your site. If you do not run paid ads yet, you probably do not need advertising cookies at all. Many beginners grow through free traffic sources like Pinterest, search and email, which you can learn to use yourself without an agency.
Website cookies explained: a quick checklist
- Do I know which cookies my website places, and which tools place them?
- Are non-essential cookies blocked until a visitor accepts them?
- Is rejecting cookies as easy as accepting them?
- Is my privacy policy linked in the cookie banner?
- Have I removed tools I do not actually use?
If you can answer yes to all five, your cookie setup is in good shape for a small business.
Cookies on a small budget
You do not need to pay for a cookie tool when you start. Built-in banners from your website builder, or free plans of consent tools, are usually enough. When you are just starting out, your whole setup can stay at around 20 dollars or less.
Avoid monthly compliance subscriptions before anyone knows about your business. Start simple, keep the cookies you use to a minimum, and review your setup as you grow.
Privacy for your visitors, and for you
Respecting your visitors’ privacy goes well with protecting your own. If the idea of self-branding is what held you back so far, Lynnaider recaps the alternatives for you.
Your next step
The next article shares a high-level checklist for businesses going international. The complete Lesson T4, including all topics on website cookies explained in more depth, is in the book on our products page. If you would like help setting up your cookie consent, see our services page.
Frequently asked questions
What are cookies?
Small files that websites save on a visitor’s device to remember information about them: preferences, actions, login status: so their next visit runs more smoothly and more personally.
What are essential cookies?
Cookies needed for basic website functions: keeping visitors logged in, remembering shopping cart items, and similar. Placed by the site owner (first-party cookies). They do not generally require consent.
Are there step-by-step Lynnaider tutorials for starting each of the 10 online business models with a minimal-cost setup?
Not yet, but they might be made if enough people ask for them. Sign up to the waitlist so we can see the interest, and you will be among the first to hear when they are available.
What are non-essential cookies?
Cookies used for tracking and advertising, often placed by external services (third-party cookies) that collect data about visitor behavior across sites. Under many regulations, visitors must be able to opt out of these.
What is the difference between first-party and third-party cookies?
First-party cookies come from the site the visitor is on. Third-party cookies come from external providers embedded on that site. Third-party cookies are the ones most tightly regulated.
Do I need to ask consent for essential cookies?
Generally no. They are required for the site to function, and most regulations allow them without a consent step.
What if my website tool already has a cookie banner?
Most modern website builders include one. Check that the boxes are not pre-checked and that visitors can actively opt in or out. If it looks pre-configured to accept everything, adjust it.
How can I learn to set up an online business at no or low cost?
Lynnaider teaches setup routes for each of the ten online income techniques that cost nothing, or very little (under 20 dollars), to go live, so you do not pay setup costs long before you earn. Our free AI agent, Lynnaider Compass, guides you through them step by step, in the same logic as the whole Lynnaider teaching.
Disclaimer: This article is for general informational purposes only and should not be regarded as legal, tax, or business advice. Pursuing an online business does not guarantee income; results depend on many factors including the business environment, individual effort, skills, and consistency. Some links on this site may allow Lynnaider to earn a commission at no additional cost to the reader.
