Enhancing conversion rates in the e-commerce sector can be significantly achieved by reinforcing address verification measures. Since the inception of e-commerce, fraud has been a persistent issue. The surge in online sales during the COVID-19 pandemic provided fraudsters with new opportunities, which led to online shopping scams accounting for 38% of all reported scams worldwide in 2020, up from 24% before the outbreak. Despite a decline as the crisis diminished, security breaches became a major concern, with the industry losing over $40 billion to online payment fraud in 2022. Consequently, the e-commerce fraud detection and prevention market is expected to grow more than two-fold between 2023 and 2027, exceeding 100 billion dollars. Integrating effective address verification can help mitigate these losses, which ensures a secure shopping environment and enhances customer trust, ultimately boosting conversion rates.
What is an Address Verification System (AVS)?
The address verification system is the defined framework that authenticates the user’s provided data, which is present on the shipping address. This validation system assists e-commerce stores or digital businesses in enhancing conversion rates by reducing checkout mistakes due to incorrect delivery addresses. Digital enterprises that are majorly providing their services online employ address verification in the e-commerce sector to identify legitimate customers by comparing the supplied credentials against authorized databases. These defined databases store authentic residential details. The potential customer’s address details, postal code, and house number are checked to complete the procedure. The submission of authentic address details during checkouts helps reduce the cost, which usually goes to waste due to incorrect delivery. Address verification in e-commerce ensures the reliability factor, which ultimately proves the conversion rate, which regulates increased sales. Address verification has applications in multiple sectors, and some of them are given below:
- Address verification for financial services
- Address verification in fintech
- Address verification in medical billing
- Address verification in real estate
- Address verification in healthcare
- Address verification in telecom and utilities
- Address verification in insurance companies
Address Verification Best Practices for E-Commerce Platforms
Businesses can make sure that customers are using the right address by using e-commerce address verification solutions. These solutions check addresses against a trusted database or use location data to find out where customers are located. Sometimes, as people type their address, suggested addresses appear in a drop-down menu to help them. This allows both customers and businesses because it ensures orders are shipped correctly and quickly.
Address Verification Potentials: Explore the Best Outcomes for Enhanced Productivity
There is always a reason for every action. The validation of customers’ identities ensures the best outcomes in the system operations. Therefore, streamlining the businesses, the following potentials are given below:
Refine Checkout Flow
Businesses can easily refine their checkout points by acquiring authentic address details in real-time. For this purpose, the regulation of address verification APIs mitigates the chances of the wrong address submission. However, abrupt customer behavior can cause customers to give up on fulfilling all the address details due to laziness or uninterested behavior. By removing these difficulties and upgrading checkouts, businesses’ online portals can take advantage of active address verification in e-commerce. Potential digital enterprises can easily capture users’ address details with the assistance of e-commerce address authentication and validating the APIs. So, the risks of sending acquired products to the wrong users are minimized.
Improve Delivery Rates
The delivery rates directly depend upon the availability of the right customer locations. In this advanced digital landscape and emergency environment, potential customers who place orders online get a suitable delivery date. So, to sustain the delivery rate, an authentic delivery address should be provided. Imposters sometimes submit incorrect address details with cash on delivery transactions. Businesses can easily detect these fake identities by conducting address verification in e-commerce and reporting them permanently from the portal or website. In this way, businesses may streamline their deliverable ratio and keep tracking the shipped orders within a defined time.
Enrich Database
Address verification in e-commerce provides timely delivery, which can only be achieved by correct location credentials submitted by the customer. Businesses take affairs into hand and double-check the addresses before sending for delivery, Thus, the whole address verification in the e-commerce sector ensures enriched databases that examine the credential details before posting or shipping and combat the major risks of data anomalies.
Cost-Effective Solution
Address verification within the e-commerce sector appears to be a cost-effective solution because the money spent on the re-delivery is more than the authentication procedure. Thus ensuring the address verification protocol within potential businesses streamlines their operations in minimal time.
AI-Powered Verification Solution
The address verification in the e-commerce industry utilizes advanced machine learning algorithms with the assistance of artificial intelligence, which provide accurate results in minimal time.
The Bottom Line
Address verification in the e-commerce sector has streamlined the various operations of this industry and boosted the conversion rate overall. The availability of authentic delivery addresses reduces the chances of order cancellation, which ultimately leads to enhanced profit. Moreover, the regulation of address verification combats the potential risks associated with money losses, which are usually executed by imposters who employ advanced, sophisticated strategies just to deceive the system. Therefore, it is encouraged that residential details be authenticated to execute streamlined delivery.
