Nowadays, personalization plays a significant role in the digital market to improve the customer experience and increase user engagement on e-commerce websites. On the other side, using a lot of customer data presents significant privacy and security issues. This research examines how customization strategies alter customer expectations in light of the growing importance of data privacy. This research examines the relationship between tailored services, perceived acceptable privacy protections, customer pleasure, and trust. The findings demonstrate that although personalization makes shopping easier and more enjoyable, concerns about data privacy have a significant impact on customers' trust and purchasing decisions. The report highlights that e-commerce companies must have transparent and accountable data rules in order to maximize personalization while also safeguarding privacy and fostering enduring customer confidence.