Address Verification

E-commerce Address Validation

By 26 March 2024April 28th, 2024No Comments
ecommerce address validation

How Ecommerce Address Validation Can Save Costs and Retain Customers?

Even before the existence of ecommerce, people had the option to shop remotely. You must be familiar with physical catalogs. Newspapers and magazines also post ads that attract shoppers to get orders via mail.

No matter how shopping methods have changed, a correct shipping address is always necessary. Companies must know their customers' addresses for newspaper ads and e-commerce stores.

ecommerce address validation

You cannot teleport goods directly to the hands of your customers. Delivery workers will need time to plan the most efficient route to deliver items. An incorrect address could lead to grave problems for a business and postal carrier. Ecommerce address validation is a necessity of the modern shopping landscape.

People often need to correct their addresses on ecommerce websites. Correction could be challenging for shoppers ordering through the mail.

Yet,  e-commerce portals can integrate built-in measures to avoid mistakes. They can ensure their customer always enters valid addresses into the system.

This blog will help you explore the quirks of address validation for e-commerce websites. We will also understand how it can reduce costs and preserve brand perception.

What is Address Validation?

An address validation software confirms the validity of a postal address. The tool verifies the addresses against a prominent shipping carrier like USPS. It helps in preventing incorrectly typed addresses. These tools can also verify addresses from various geocoding providers.

You can get the precise location of a postal address on a map. 

Ecommerce address validation is vital for every online store’s checkout. Firms can reduce the number of address issues and delivery costs. It would help if you considered adding it to your e-commerce store experience to boost conversions.

Firms can also ensure improvement in customer satisfaction and loyalty. These tools make the user experience more reliable and smooth.

The following are the fundamental components of address validation for  e-commerce;

  • Parsing
  • Standardization
  • Verification
  • Enrichment

Why Do You Need Address Validation for Ecommerce Business?

Ecommerce address validation can drastically improve the shopping experience and conversion rates. Many companies are already using these tools to reduce mistakes and customer churn.

What to expect from address validation for e-commerce?

  • You can validate, process, standardize, and correct user data.
  • AVS boosts the speed of the online shopping experience.
  • Correctly compiles forms and fills in contact details.
  • You can increase lead generation by capturing the proper postal addresses.

You cannot teach every user to avoid entering incorrect or approximate addresses. Yet, your brand can consider using e-commerce address validation solutions. It would help you avoid;

  • Failed Deliveries
  • Delays
  • Additional management costs
  • Unsatisfied customers
  • Negative brand perception

Sophisticated address verification services let you integrate your online forms with autocomplete features. Real-time validation enables you to correct, validate, and update address data.

Anyone, including a web developer and administrator, marketer, or developer, can implement these solutions.

How Does Address Validation Work in Real-Time?

The software accepts structured and unstructured addresses as input. Your system will process different data types, such as normalized, cleaned, derived, and validated components. It will automatically identify dicy addresses with user input errors.

Delivery to these addresses may fail because of missing or invalid data. You can use the geocoding capabilities of the API to ensure deliverability. Standardization features will help fix typos and abbreviations.

Ecommerce address validation can also fetch additional metadata. For example, you can classify residential or business addresses.

How Can You Risk Your Customer Relationships with Incorrect Addresses?

You must know the famous saying, “The customer is always right.” Considering how customers enter incomplete or insufficient addresses, it is not practically true. Some will blame businesses instead of realizing their fault. 

You can expect a bad review if you ship late, even if it wasn't your fault. It would help if you took proactive measures to reduce the chances of late shipment. Customers entering invalid shipment addresses may also blame your business for delays and errors.

They may not even believe that they made the mistake. Many customers assume the company is trying to cover their mistake instead.

A customer can use the same address for more than one postal carrier. The exact address might work perfectly. Business owners or individuals may not even know their postal address wasn’t correct the whole time.

They will lose confidence in you if they experience shipping delays. Customers blaming your company for their mistakes is unfair. Yet, they’re partially correct! Also, they could be the ones who entered the wrong address.

You must be aware of the tools available to avoid these errors. Your business responsibility is to ensure a bug-free and smooth ecommerce portal. Responsible firms install ecommerce address validation tools to prevent reputation damage.

How Can Address Validation Streamline the Checkout Process?

Address validation for ecommerce websites could be the lifeline of the checkout process. A company will lose money on an order if it fails to deliver it to the right person. 

Verifying the validity of addresses isn’t the only use case of an ecommerce address validation API. You can transform the customer experience and increase conversion rates. Here’s what you know; 

Smoother Checkouts

People prefer a straightforward checkout experience while shopping. Customers spending less time on the checkout page are likelier to purchase. Time-taking processes will make them change their minds and abandon the cart

Address validation e-commerce uses auto-complete forms to identify correct information. Firms can automate the billing section of the checkout page. 

Say No to Pop-Ups 

Customers hate to see error pop-ups while entering information. Real-time e-commerce address validation can cross-check the information that they enter. It can also inform the user in case of a problem. 

They can easily make changes to fix the issue in the text fields. Many companies are implementing this approach to save time and effort. 

Proper Formats in Your Database 

Address validation for e-commerce provides auto-complete features. You can format all your customer addresses in a specific way. The correct form will ensure higher deliverability in a region. This capability is handy for global businesses dealing with multiple locations. 

You can enrich your database with the right AVS. This data can also be helpful for business analytics apart from making swift deliveries. 

Greater Conversion Rates 

A smooth checkout experience will allow customers to enter their addresses quickly. They will get suggestions and auto-complete features to save time and avoid errors. 

Reduction in friction and frustration will increase the chances of completing the purchase. Your conversion rate will be a lot better with happy customers. 

You Gain More Power With Additional Insights

E-commerce address validation can also provide extra information about a postal address. For example, you can learn about the building type, the postal code, and more. Decision-makers in your company can use this data to optimize shipping and logistics processes.

What is the Difference Between Residential and Commercial Addresses?

Most people order products to their residential addresses (home). Yet, it can also include a business registered to a company. Retail stores, farms, hospitals, and fire stations are a great attention for a small crowd. These commercial addresses also have loading dock access.

The High Costs of Delivering to Residential Addresses

It costs more to deliver mail to residential addresses. Commercial addresses are less scattered in an area. At the same time, you will find residential locations spread throughout different neighborhoods.

It takes more time and fuel to deliver to these addresses. Companies bear more overhead costs while making deliveries to residences.

What Could Go Wrong with an Incorrect Address?

You might be curious how someone can make mistakes while entering their address. After all, they are living there. There could be multiple reasons for them to enter the wrong addresses. 

A simple typo is often the most common reason. Yet, accidental switches of some digits in a ZIP code could also result in errors. Customers can also need to remember parts of their address entirely. 

You should consider that your customers do not order from their addresses. Sometimes, they could be buying a gift for someone else. They might not be familiar with the recipient’s address. 

Delays or lost packages are typical results of incorrect shipping addresses. It annoys the customers and also costs you money. Frequent delays can make you sacrifice profits and lose all your customers. 

E-commerce address validation can help you retain these customers. 

Be Ready to Bear Additional Delivery Expenses 

Incorrect addresses will lead to monetary costs to fix the delivery issues. This amount will depend upon the scenario and shipping carrier you are using. 

Lost Packages 

A package could completely disappear or land in a different recipient. The entire cost of the product and delivery will be your responsibility. 

It could lead to significant damage If you sell expensive products or have a low profit margin. An e-commerce address validation solution can save your day! 

Returned Packages

Incorrect addresses can make the package return to your facility. You will need to pay again to correct its delivery this time. The reshipment will be on you even if your customers paid for the delivery. 

You must offer to pay for reshipment to avoid upset customers. It will be your only chance to retain unsatisfied customers. Yet, some customers could be okay with paying for reshipment to the correct address.  

Rerouting of the Package 

UPS and FedEx will try to fix wrong addresses by comparing them to their databases. It could be the last option to send the item to the correct recipient. Yet, they will be charging a specific fee for this additional service. 

The amount is increasing every year. This cost will likely be more expensive in the coming years. Your packages won’t come under delivery speed guarantees if FedEx or UPS have to attempt to fix the address. 

Residential Surcharge by Different Carriers

Postal carriers impose a residential surcharge while delivering shipments to home addresses. It is important to note that these deliveries cost more than those to commercial addresses. The fee is usually $5. Yet, it could be different for each postal carrier. 

FedEx 

FedEx Home Delivery is the only service that ships items to residential addresses. It imposes a surcharge of $4.00. 

USPS 

The postal service doesn’t enforce any residential surcharges. Most e-commerce companies use USPS hybrid services to avoid any extra charges. 

UPS 

This postal service’s residential surcharge is similar to FedEx. It uses UPS Ground and UPS Air to deliver packages to residential addresses. Both can cost around $5.00.

Time to Improve Your Brand Perception with Address Validation for E-commerce

E-commerce address validation can improve customer satisfaction levels. You can ensure more timely deliveries without any mismanagement or errors. Customers will build higher trust when you deliver shipments promptly.

Repeated business and positive reviews will be standard. People will start developing a strong brand perception and customer loyalty.

A negative delivery experience can be harmful to your business. 23% of individuals say they won’t shop from a company with a failed delivery. 21% of them lost trust in the retailer with such issues.

Address validation for e-commerce can transform your brand’s image. Customers will have faith while shopping with a reliable e-commerce store.

Save Money and Reduce Delays with e-commerce Address Validation:

Delays and failed deliveries can have a direct impact on delivery costs. A return shipment is expensive for both the retailer and the customer. You will need to put additional expenditure into resolving a failed delivery.

At the same time, your consumer will be spending more time in a dilemma. Your firm will pay for shipping, handling, and other costs. A small change in your strategy could save tons of dollars.

All you need is e-commerce address validation software. It would ensure addresses are correct before dispatching shipments for delivery. You will spend less time and resources on your customer service.

People will have no problems with your ongoing services. A positive customer experience can save time and resources. It can become an endless loop of consumer complaints and support tickets.

How Retail Giants Are Using Address Validation E-commerce?

Retailers know that residential deliveries are more expensive. They deploy address validation for e-commerce with innovative use cases. It helps in reducing costs, saving time, and preserving reputation.

Efficient Route Planning 

E-commerce address validation is necessary to determine the most efficient delivery routes. Some carriers impose additional charges to reship a package to the correct destination. Both UPS and FedEx have address correction charges. 

Precise Cost Estimation for Each Delivery 

You will lose your money by delivering to the wrong addresses. Lost packages are even worse for e-commerce businesses. An e-commerce address validation tool can help you estimate the exact cost for each delivery. 

There won’t be any redelivery if the shipment reaches the recipient in the first place. Explain how commercial and residential delivery fees differ. 

Gather Data in the Right Formats

E-commerce address validation ensures a consistent format of addresses in your database. 

Dual Carrier Labelling 

Each postal company uses a distinctive label for different types of addresses. They will label some areas as residential complexes while some as commercial. You need to identify these labels for each carrier to make less expensive deliveries. 

Consistent address data can have multiple use cases. It can help postal workers in reducing processing time to deliver your shipments. You can also use this data for business analytics or marketing campaigns. 

How PostGrid’s Address Validation E-commerce API Can Save Your Business?

Do you need help with deliveries and delays with your e-commerce shipments? A reliable ecommerce address validation solution could be your lifesaver.

PostGrid’s address verification API can help you ensure deliverability and customer loyalty. You can validate and standardize addresses according to local postal standards to avoid surcharges. Here’s what you can do with our API;

Real-Time Validation

You can validate addresses at entry points in real-time. The API works against reputable databases like USPS to ensure deliverability in the country. You can integrate the API into your checkout window to streamline the experience with high accuracy.

Address Auto-complete

Your customers often need to correct their addresses. What if you could auto-complete address entries the moment they start typing? Our API saves time while ensuring complete accuracy of address data. Users can avoid entering incorrect data and get proper suggestions of valid addresses.

Bulk Address Verification

Firms can save hours by using our ecommerce address validation tool. Bulk verification of addresses allows you to quickly check many addresses by uploading a CSV file in just a few minutes. You can rest assured that all your addresses are valid and standardized.

Most e-commerce companies use address validation solutions to resolve delivery issues. It would help if you were to join this league to flourish your business. Don’t disappoint your customers with failed deliveries or slower checkout flows. All you need is the proper integration with your e-commerce website to reduce costs and save time.

Sign up now to embrace the power of ecommerce address validation.

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