Address Verification: Protecting the E-commerce Industry from Failed Deliveries

A customer’s address is critical information that must be up to date, correct, and checked for effective product delivery. Incorrect addresses cause problems with delivery and shipments. Customers expect from businesses to receive the things they buy online on time. Furthermore, every delayed, missing, or unreceived item can lead to no client loyalty, resulting in a negative effect for any online organization.

As a result, address verification is essential in the eCommerce sector and businesses must verify it before onboarding a customer. The following blog will explain why verifying an address is so important for an online business.

6 Reasons Why Address Verification is Important for the E-commerce Industry?

Address verification is a method of determining whether the customer’s address on order data is valid and deliverable or not. To ensure successful shipment transactions, e-commerce enterprises should not skip this crucial verification step. Technologies and services for address verification are easily accessible to help business owners in this case. The following are the reasons why it is so important for the eCommerce sector:

  1. Ensures Correct Deliverability Information

An address verification system can check to see if a client gives the right address on the website. Whether a person runs their own online store or does dropship, this system can help them in both ways. The online address verification technology uses APIs in its system, which assists in ensuring precise data deliverability.

An API is a type of software intermediary that enables connections, communication, and processing of authorized data between various applications and software programs.

  1. Quick Delivery

Punctuality is critical in any business because, for many people, time is money. So it’s only logical for businesses to look for methods to save people’s time. Therefore, eCommerce companies must ensure that orders are delivered within the given time frame.

Due to typographical errors, courier companies have to face difficulties determining the address of the parcel’s receiver, which results in delayed delivery. An address verification approach can aid in verification of address given by the consumer online. It also ensures that the client receives its item within the expected time limit.

  1. Avoids Hassle And Lost Productive Hours

As previously discussed, an API automates processes that were previously performed manually for verifying address. This technology provides maximum convenience by making day-to-day operations of eCommerce businesses easier. It also reduces stress and manual labor. 

Consider the frustration and difficulty of dealing with returned merchandise. These require further work, such as confirming the address provided by the customer and contacting the shipment service to provide the right information. Online businesses must resend the product to the correct address because it was undeliverable, which is inconvenient for the employees and can result in lost work hours. They should use address verification systems to completely avoid such problems, allowing businesses to concentrate on more crucial business issues. 

  1. Maximizes Conversion Rate of Website

By using AI algorithms, a system for verifying addresses can increase an eCommerce website’s conversion rate. The percentage of website visitors who make purchases or sign up as paying customers for an online retailer is known as the conversion rate. The inconvenience of dealing with a drawn-out and perplexing checkout process is another reason why these rates are falling.

Employing an AI-driven address verification method in an eCommerce website streamlines the checkout process and ensures that the system completes the sale correctly.

  1. Improves Marketing Results 

Accurate addresses in a company’s database can enhance marketing results. They can use verified data to build customer relationships and entice loyal customers to recommend their services and goods to others.

Furthermore, persistent consumer follow-up and engagement through direct mail, branded merchandise, email marketing, and other marketing initiatives will pay off in the long run. Gain loyal clients who will serve as brand ambassadors and promote the business’s brand for free.

  1. Promoting Improved Online Customer Experiences 

The biggest online markets have teams that are specifically trained to deal with customer complaints about eCommerce. This is because address-related problems account for the majority of undelivered and delayed deliveries. So, one fantastic approach that large corporations use nowadays to prevent these issues is address verification.

Address validation services can help a company’s database be free of address mistakes and formatting problems, guaranteeing on-time delivery of packages. To increase customer satisfaction and make online shopping enjoyable and stress-free, eCommerce businesses must eliminate errors.


Undeliverable shipments can harm an eCommerce business by producing lower revenues, consumer dissatisfaction, and fewer repeat purchases. Online address verification services can help to improve online company processes. An address verification system can assist in validating and automatically correcting addresses to ensure on-time product shipping. They also avoid lengthy and confusing checkout processes from swaying potential clients’ opinions. As a result, the company’s customers will become more content and happier, and their eCommerce business will be more profitable.

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