The online shopping business is flourishing day by day. In the US, the number of online shoppers is expected to reach 300 million by 2023. So, it is apparent that the future of shopping is online. In this scenario, the number of online fraudulent activities has also increased significantly. Thus, regulatory authorities have devised strict laws to keep the online shopping space as secure as possible.
Online shoppers have the perk of staying anonymous. Therefore, online businesses have developed mechanisms for verifying the identities of customers. Moreover, a major step of the identity verification process is to verify the address of the user. It is a fundamental need for online businesses to ensure the delivery of shipments at the right address. Otherwise, returned shipments put a financial strain on the businesses. Therefore, the question of how to verify an address of customers is answered by automated address validation services.
What is an Address Verification System?
An address verification system is employed to verify the address of customers before they can go through with any transaction. It is important to guarantee that the address specified by the customer exists. Verification of address confirms the legitimacy of customers and in return ensures the transparent processing of transactions.
How does an Automated Address Verification Process Work?
The need to verify addresses is being realized by businesses and rightly so. The pandemic environment has forced even physical shoppers to turn to online shopping. Thus, address verification has become necessary for businesses.
To verify the address of the online shoppers, following the steps are followed:
- In the automated address verification process, the first step is for the customer to enter their address in the information form.
- The customer uploads an identity document containing their full name, address, and expiry date or due date.
- The type of document i.e, utility bill, identity card, etc accepted depends on the requirements set by the address verification system.
- Then, the document is inspected for any ill-doing like a forgery attempt.
- The system then matches the address provided by the customer with the one stated on the document.
- Lastly, the verification system shows the results to the user and updates them in the back office API.
How Address Verification can Boost E-business Sales?
Increase in Sales Conversion
Customers want an online shopping experience that is simple and quick. If the identity and address verification process feels cumbersome, they are more likely to abandon the checkout page without making a purchase. The longer the customer has to stay on your website to complete the verification process, the higher are their chances of them not buying anything. Thus, an automated address verification process simplifies the process to verify addresses for the users. It increases the chances of these users returning and converting potential sales into definite ones.
Real-Time Verification Results
Customers are annoyed if they get an error pop-up right when they click checkout. An automated address verification solution heeds this problem by providing real-time results. The user is given editing access to correctly state their address in the information form. If there is any problem with entering the data, the user will be notified instantly. Moreover, the results are shown right after the provided document is matched with the entered address.
Increase in Customer Retention
It would not be an overstatement to say that the customer experience drives online businesses. For online shopping, a lot of things can go wrong between the time the user came to your website and when the order was delivered. And, online shoppers don’t want to hear excuses and apologies from the business if something does go wrong. Thus, streamlining the aml verification process and ensuring package deliveries to the right address, are crucial for customer retention.
In a Nutshell
The collection of precise customer information is pivotal for the growth of your e-business sales. Without validating the addresses of your customers, the package delivery process will remain troublesome for businesses and customers alike. Wrongly delivered products can impede the financial growth of the business while decreasing customer satisfaction.