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Address Verification in E-commerce Increases Customer Satisfaction?

Address verification has multiple benefits in e-commerce, including customer satisfaction, smooth checkout, auto-completion, and more.


Whether it’s a newly arrived product or one of your favorites, customers are usually excited about their first purchase. But when a delivery goes sideways, frustration takes over the excitement. When we think of building an e-commerce site, there are few things that businesses should consider.

It ensures that the e-commerce website is user-friendly and provides better usability. But most importantly, businesses have to consider an integration of some robust security features and the best payment options. Merchants also have to check if the website provides clarity over shipping time and return policy. 

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Did you know? Most businesses start losing orders during their first attempt. Adding it all up can show a loss in terms of annual revenue. However, all e-commerce stores try their best to achieve maximum targets. But what e-commerce sites are missing to lead their website to the top?

You might want to consider address verification to ensure a smooth experience for customers. Integrating this feature into your website could save you from a lot of hassle. 

According to Skubana, “four out of a hundred US retailers haven’t integrated address verification into their systems.” Online merchants would most often come across the wrong addresses.

Besides the cost that businesses have to bear, it could also create friction in the customer experience. However, it would also impact the loyalty and customers who tend to purchase again. This way, the brand’s reputation would start falling soon. 

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What is Online Address Verification?

Online address verification verifies if a person is entering their address correctly. It could save a lot of time and money for businesses to ensure they are dealing with the right customers. This means you are not dealing with a fraudster who could give out the wrong address and ask for a chargeback. 

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It serves the best interest of both users and merchants without creating any friction during the customer journey. The address verification application could be integrated easily with the website, including a CRM (Customer Relationship Management) software.

By having access to the customer information, you could drive better results with informed decisions. Ultimately, it would increase customer satisfaction and brand value. 

Benefits of Business Address verification?

Save Delivery Charges Due To Incorrect Addresses 

The AI-powered address verification application acts in real-time and reduces human error over a period. Without a correct address, sending a shipment again to the right address could cause paying again for shipment.

On the other hand, if a customer provides their business address and shows up as a residential address, they could pay for a residential overcharge. It would eventually create friction in the customer journey. 

High Conversion Rates 

Most customers abandon online shopping because of a lengthy process to check out. Through an automated suggestion of delivery addresses, the time required to complete the checkout without decrease significantly. In return, the conversion rate would also climb up, as customers wouldn’t get frustrated and leave without a purchase.

Besides, it would also help online merchants to authenticate the real identities of their customers. According to Baymard, “an average for cart abandonment rate is approximately 69.80%”. 

Introduce Operational Efficiency 

Sending undelivered goods would cost double in terms of the postage cost, and redelivering them would cost more. Capture right addresses at the instant customers land on your page. This would ultimately decrease any redelivery cost and eliminate any errors. 

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Reduce Fraud Attempts 

By validating the correct addresses, businesses could potentially secure transactions by reducing any fraud attempts. It would also ensure that transactions are made by customers who are what they claim to be. 

Getting Started With Address Verification 

Through address verification solutions, e-commerce businesses could complete documentation of each customer. Businesses could potentially save thousands of hours for customer service. 

Address verification is a reliable solution to help online businesses collect accurate data during checkouts. It’s quite important to ensure consistent sales and higher conversion rates.

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Any fraud attempt could be intercepted immediately that would be useful in keeping fraudsters at bay. Moreover, customer loyalty would also enhance, which would provide a smooth experience to online customers. 

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Red Note: 30 September 2022

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