Why E-commerce Businesses Need Online Address Verification

Address verification systems in e-commerce enhance customer experience by ensuring a seamless checkout process and real-time address validation.


With a growing digital economy, ensuring safe and trustworthy online transactions is a foremost concern. Businesses are targeting high conversion rates in the online marketplace and injecting millions of marketing dollars to secure e-buyers. Statistics show that millennials are now making 54% of their purchases online and value an efficient checkout process incredibly. Instant access, fast turnaround times, around-the-clock accessibility are top priorities for the youngest buyers, also known as Gen Z.

Address Verification Systems

An address verification system cross-checks a customer's address to ensure that is registered with most shipping carriers. This streamlines the checkout process and reduces checkout errors, saves shipping costs and increases conversion rates for the business.

Simply put, if the addresses are entered incorrectly, shipments will have to be returned and someone will have to pay the cost. In most cases, this is usually the retailer itself is on the losing end. Not only does it harm the company financially, but it also hurts brand reputation if deliveries are repeatedly returned or rejected.

Simplified checkout processes are also part of good business practices that retain clients. When it’s time to close the deal, customers prefer easy-to-follow steps that are not time-consuming or challenging to answer. A painless process of information gathering, therefore, ensures that customers are willing and able to submit address and billing details to ensure a smooth transaction.

In this respect, address verification can be used to auto-complete forms as soon as primary identification is provided. Customers find this to be a faster and more convenient way to checking out, as opposed to spending time typing out long personal details without an error.

The following are some types of address verification carried out by merchants on a daily basis: 

  • Business Address Verification

For B2B transactions, business addresses need to be collected and verified. In this context, KYC obligations require that businesses are operating from the address that they submit. In the long run this ascertains that companies can be vetted for trustworthiness and credibility. Money laundering and terrorist financing risks can be ruled out using something as trivial as a business address, indirectly providing links to any kind of suspicious activity.

  • ID Card Address Checks

Customers with valid IDs can be verified by cross-checking address details on the official document. Proof of address for verified deliveries and user identity prevents customer fraud and chargebacks.

It works in a simple way, asking customers to submit an ID card to a verification software and allowing real-time verification of credentials. In addition to checking addresses, the authenticity of the card is also checked to further confirm trustworthiness. For a global client base, proofs of verification can be recorded as evidence to be used in the case of chargeback claims. Carrying out checks against secondary documentation such as a driver’s license is also made easier.

How Address Verification Service Providers Can Help

Saving time and money by verifying information at the time of checkout leads to enhanced customer experience. In the digital world, that has a lot of significance for brands competing for top place in search engines and social forums. If customers can trust a company and its processes fully, there is a high probability of more fruitful conversation rates.

Features such as real-time address verification identify errors as soon as they are entered and make the check-out process less demanding. In the absence of such a service, a customer would probably see a pop-up error message that asks for all the information to be re-entered. This can cost a business a valuable long-term customer, as most buyers are looking for seamless ways to check-out and are notified of shipment details.

A reliable address verification service will also keep in view the correct formatting of addresses. Shipping details need to be written in a specific way to ensure that they reach a destination, especially for international orders. All-in-all it will cover any and all logistical obstructions that stand in the way of a successfully closed deal. The goal of smooth address verifications is to store an address properly, complete the checkout process and satisfy a client.

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