The e-commerce business is now thriving. According to a report, online firms grew by 16% to 19% in 2020. It is also anticipated to increase by 22% in 2024. The apparently infinite potential makes businesses nervous, enthusiastic, and surprised by the massive increase within an e-commerce industry. An address is the most important aspect of an internet company. A mistyped address can result in a total waste of resources and time. On the other side, verifying an address could assist the e-commerce business to reduce missed deliveries and fee corrections while enhancing the customer experience. As a result, the address verification technique is required for the success of an online company. A lot of service providers, including Shufti Pro Funding, are raising money to develop address verification systems.

Online Address Verification and E-commerce industry

One of the most significant aspects of the shipping & e-commerce industries is the online address verification procedure. Postal addresses are the essential element in these businesses, they must be rapidly regulated and checked online. A verification of address method has two functions. The first is to confirm that the information submitted online is correct and accurately matches a physical location. Second, add all necessary data to the identity database. This procedure guarantees that the items are delivered to the proper address, eliminating any possible errors caused by duplication, mistakes, or other concerns.

Challenges of Online Business and Address Verification

The delivery problems have plagued the online business since its start. The difficulties faced by the sector and the incorporation of address verification into it are listed below: 

• Free Shipping Demand

It is one of the problems that directly affect customers’ expectations. Clients demand free shipping in 75% of cases. This demand puts further pressure on the company to provide free shipping for improved customer service. Address verification could be used to enhance shipping processes, cut down on returns, and prevent costs. Companies can provide free shipping using the money they saved on expenditures.

• Fees for Address Correction

This fee is enforced by shipping companies like  UPS,  DHL,etc. to cover their shipping costs. When the delivery address contains an error or is incorrectly entered, additional costs for address correction apply. Address verification can assist in preventing these kinds of mistakes and can save the company from remedial expenditures. 

• High Shipping Fee

The majority of firms are afraid of returning boxes holding delivered items. They raised the shipping price to bear the loss. So, they won’t be responsible for the delivery fee if the address is wrong. Customers often avoid buying from e-commerce companies that have a high delivery charge. Address verification could help companies lessen their concern about shipments being returned. There is no need to raise the shipping price if the shipment is delivered to the right address in the first place.

Benefits of Address Verification

Address verification has completely transformed the e-commerce sector. Some advantages of this fantastic service are listed below:

• Customer Satisfaction

Satisfied consumers are critical for the success of any organization. When a consumer purchases a product, the address verification system obtains it automatically. It saves the client time and decreases shopping cart abandonment. As a result, if the consumer is not required to do anything other than buying the goods, their trust will grow. As a result of their improved experience, they will become loyal customers.

• Efficient Time-Usage

 Put aside all the costs and advantages. Think about the amount of time that could be saved if the product were delivered to the proper location. Significant amounts of resources can be saved by making better use of this period. It can help with growing sales and concentrating on the company rather than the fear of losing money.

• Better Marketing

If the item arrives on time due to the right verification of address, the consumer will recommend it to others in their circle. Consequently, the company will get a complimentary marketing plan. This advertisement cycle will lengthen as more consumers get better customer service from the internet firm. 

Conclusion

The e-commerce sector has already revolutionized company practices. Without any large infrastructure, this sector makes doing business quite simple. However, this industry, like any other, has its limits. Orders that are delayed or undeliverable have a severe effect on the e-commerce firm, resulting in customer dissatisfaction, no loyal customers, and decreased revenues. The address verification technique checks and corrects locations to ensure that orders are delivered at the correct location and time. According to Shufti Pro News, the e-commerce industry is becoming simpler and more lucrative as a result of implementing a proper address verification system. Digitally verified locations can save time and make the user experience better.