Address verification is one of the vital components of the e-commerce industry as it provides information regarding customers’ locations. Moreover, accurate details aid in fasters and more accurate deliveries. On the contrary, discrepancies within the information can not only cause additional re-shipping charges but also result in false chargeback claims. Fraudsters often use the latter to obtain extra money while keeping the shipments.
Missing, delayed, or unreceived parcels are results of inaccurate verification of address which directly affects customers’ loyalty. Ultimately, e-commerce businesses can face an increase in client drop-off and reputational damages. However, with advanced AI-powered IDV solutions in place, these platforms can counter fraud risks more efficiently. This blog provides insights into why online address verification is essential for e-commerce sites.
Verification of Address – Enhancing E-Commerce Sites’ Functionality
Online shopping and digital payments are enhancing customers’ experience and uplifting progress for e-commerce sites. While they enable clients to remotely onboard platforms and make seamless purchases, online platforms need to be aware of some threats. Fraudsters use synthetic identities, account takeover fraud, and unethical hacking to register as imposters. This helps them dodge the address verification process while exposing legitimate customers to serious consequences.
Online address verification systems help e-commerce sites to determine and maintain accurate customer details. In case they overlook identification steps, online platforms will experience a variety of threats such as financial loss, additional correction charges, and re-shipping costs.
AI-powered address verification tools enable e-commerce businesses to bring in more efficient information validation checks. By using API, geo-tagging, and liveness detection, online platforms can ensure that orders are reaching the right buyers. Further justifications for why it is crucial for e-commerce sites to verify address are in the next section:
Accurate Data Entry and Deliverability Information
Address verification solutions use automated tools such as OCR to extract information from customers’ documents. Manual input and interpretation are prone to human errors that result in data discrepancy leading to failed deliveries. In return, the respective e-commerce business faces additional address correction charges and re-shipment costs. However, AI-powered IDV tools ensure accurate deliverability details by automating data extraction by using API.
Application Programming Interface (API) enables different systems to connect and communicate with other computers across the globe. This helps e-commerce sites cross-validate address information with authorized registers. Where fraudsters use synthetic identities and fake location details, AI-powered API counter their intentions efficiently. Online verifying address solutions further overcome the following mistakes:
- Address Lookup
API enables e-commerce sites to look up customers’ location details across global registers, databases, and other such authorized records. This largely adds to accurate deliverability information coming from customers across different regions. While spreading their services, online businesses are laying grounds to attract more clients and retain a huge user base. In this run, they require online address verification to further enhance their operations.
- Appending Capabilities
This process uses ZIP codes to cross-verify address by matching them with metadata points such as latitude/longitude coordinates, vacancy status, and congressional districts. This helps e-commerce sites to identify geographic areas and ensure their customers are providing authentic details.
- Autocomplete And Geotagging
API makes verifying an address easier as it holds tons of locations from different regional and international databases. AI-powered IDV solutions enable e-commerce sites to record customers’ information and upon their future arrival offer autocomplete options. Services such as geocoding identify and automatically correct the discrepancies within entered data.
Online address verification solutions provide an IP geolocation API that tracks customers and keeps track of their purchase history. This way, e-commerce businesses can better assist their valuable customers by allocating them discounts and other special offers.
Prevents Loss of Productive Hours
AI-powered API is automating address verification that was previously done manually. These technologically advanced services streamline the deliverability process, customer onboarding, and identity verification while keeping convenience intact. Ultimately, businesses can eliminate the hassle their customers face during complex registration. Furthermore, online verification of address largely contributes to enhancing a positive client experience.
Faster Delivery and Increased Sales
Punctuality is the most crucial aspect for businesses offering online services. Customers are more likely to drive away from platforms taking weeks to ship a parcel. However, in case of typographical errors, logistic companies face a difficult time locating buyers. With AI-powered address verification solutions in place, both e-commerce sites, as well as courier services, can increase sales, generate profits, and assist more customers.
Concluding Remarks
Failed deliveries, abandoned carts, and customer drop-offs can negatively affect online businesses. As digital evolution is taking over in every industry, clients demand more convenient, secure, and faster services. Going through complex address verification can drive them away. Hence, e-commerce sites need to integrate automated IDV solutions to not only ensure on-time shipments but also streamline customers’ online journeys.
