Address Verification Solutions-E-commerce has been experiencing a boom since the digital revolution took over. The concept of international shipping and remote shopping is somewhat new.
However, customers are adopting it at a fast pace. Where it is bringing convenience for global buyers, challenges are simultaneously increasing for e-commerce sites.
Fraudsters use fake addresses to avail benefits like chargeback. Furthermore, they also ask for free shipping which costs industries a big amount of money.
In order to reduce the chances of failed deliveries, criminal activities, chargeback fraud, and reputational damages, e-commerce platforms need to employ efficient address verification solutions.
This way they can identify customers and their whereabouts prior to dispatching the parcels. The blog covers challenges the e-commerce industry encounters and how online address verification help combat them.
Address Verification System – Handling Challenges Faced by E-Commerce Platforms
The fast-paced growth of the e-commerce industry is paving way for global customers, retailers, third-party companies, and vendors.
With its innovative measures like digital payments, instant log-in, direct customer-to-seller interaction, and online purchases, it is further expected to achieve unexpected heights. As of 2021, the e-commerce industry marked over $4.9 trillion in sales.
To retain this momentum of growth, they require robust address verification mechanisms. This way they can ensure the deliveries reach the right customers.
Moreover, verification of address helps e-commerce platforms attract global customers. Shufti Pro funding indicates that the AI-powered solutions provide authentic validation of clients’ locations which mitigates the chances of failed deliveries.
Ultimately, the platforms can gain client trust and secure their shipping operations. In making all this a reality, the e-commerce industry faces the following challenges.
Extra Charges for Correction of Address
A prominent challenge for e-commerce platforms in this digital era is the correction of address. In the case of manual records, the process becomes ticky and long-term.
Furthermore, platforms have to pay extra costs for changing the details. Therefore, e-commerce platforms require online solutions to verify addresses.
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The AI-powered services help sites save the details in databases that customers can use in the future. The system also provides an auto-fill-in option that further eliminates the chances of incorrect entries.
Digital verifying address solutions help e-commerce platforms to keep their records up-to-date while combating discrepancies and additional costs.
Increase in Failed Deliveries
Failed deliveries are the most common type of drawback e-commerce platforms are facing. The prime reason behind this is that fraudsters use fake addresses to order restricted products. In this case, e-commerce platforms face two consequences.
Firstly, the person residing at the address refuses to receive the order and it costs additional shipping costs. Secondly, the fraudsters file for chargeback claiming they did not get the delivery.
Considering these issues, it has become necessary for the e-commerce industry to validate addresses before dispatching parcels.
The online solutions provide accurate verification of whereabouts, cross-match it within global registers, and analyze geo-locations. This way, the e-commerce industry can better address verification and decrease failed deliveries.
Free-of-Cost Shipping
Customers prefer e-commerce sites that offer free shipping which is, in turn, the deal-breaker and added bonus for platforms. However, online stores can not leave the verification of address unattended.
As per Shufti Pro News, in case of a failed delivery, the respective platform will have to pay the additional cost.
Therefore, e-commerce platforms need to incorporate better address verification solutions in order to enhance the customer experience as well as prevent reputational damages.
The AI-powered tools are capable of analyzing geo-locations that offer an additional layer to the online address verification process. Hence, customers can avail themselves of free-of-cost shipping while shopping in a risk-free environment.
Excessive Chargeback and Shipping Costs
Retail shipping services are set to increase the charges e-commerce pay for delivering an order. This is because failed deliveries are increasing and fraudsters are manipulating the legit platforms.
Therefore, in order to save extra costs, e-commerce platforms need to integrate efficient mechanisms to validate addresses before shipping the order. In the case of international deliveries, the chargeback can cost a fortune.
The online address verification systems help online companies reduce the chances of extra costs they will have to pay for wrong deliveries.
The AI-powered tools easily locate customers by minimizing their hassle as well. Ultimately, e-commerce platforms can ship orders to the right residential or commercial addresses while paying the set cost.
In the End
Correct addresses are the pre-requisites to ensure the order reaches the right customers. In case of inaccurate entries or incorrect address verification, e-commerce platforms are more likely to face financial loss.
Therefore, online stores need to employ better mechanisms for locating customers and mitigating the chances of failed deliveries.
The AI-powered address verification services are their reliable solutions in making this happen. Ultimately, e-commerce platforms can enhance customer experience while steering clear of extra costs.
