7 Reasons Address Verification Is Essential For eCommerce

The customer’s address is vital information, which must be correct, up-to-date, and validated for successful item delivery. Problems with shipments and delivery arise due to inaccurate addresses.  Customers expect they’ll receive the items they ordered online on time. And, any delayed, missing, or unreceived item can lead to poor customer loyalty, causing a negative domino-like effect to any business. 

So, if you’re into eCommerce, address verification is a must. In this article, you’ll learn the important reasons why address verification is essential for eCommerce.

What Is Address Verification?

In simple words, address verification is a way to determine if the address of the customer on the order details is correct and deliverable. ECommerce businesses shouldn’t miss this important verification step to ensure smooth shipment transactions. Address verification services and tools, such as Lob, can be sought to help business owners in this aspect. 

Now that you know what address verification means, take a look at the following reasons why address verification is important for eCommerce: 

  1. Ensures Accurate Deliverability Details

An address verification tool can validate if the address that a customer entered on the Whether you are running your own online store or into dropshipping, an address verification tool can validate if the address that a customer entered on the system is accurate or not. This tool helps ensure accurate deliverability details, which is powered by application programming interface or API.

API refers to interface or software intermediary that enables different apps and software programs to connect, share, and process authorized data, such as address verification. Here’s how an address verification API works when determining address mistakes:

  • Address Lookup: An address verification API looks up customers’ addresses in official address databases, such as USPS, and verifies and normalizes the address data. 
  • Appending Capabilities: It attaches ZIP codes to address data and additional metadata points, including longitude and latitude coordinates, FIPS codes, congressional districts, and vacancy status. Federal Information Processing Standard Publication or FIPS codes, numbers uniquely identify geographic areas.
  • Autocomplete And Geocoding: An address verification API has a collection of addresses, which may include US and international addresses, that comes with address autocomplete and geocoding capabilities. The tool can automatically correct the errors on the system to ensure accurate deliverability details by identifying residential areas, commercial building, and P.O boxes. Additionally, retailers can use an IP geolocation API to track any customer’s purchase history by using IP addresses, which allows giving discounts or special offers to the right customers.
  1. Faster Delivery

Punctuality is crucial to any business because time is money for many people. So, it’s only practical to find ways to save people’s time in order to show you value them more than anything else. That’s why eCommerce businesses need to ensure fast delivery according to the expected agreed order delivery time frame. 

Because of typographical errors, courier services will have a difficult time locating the address of the receiver of the parcel, hence, causing delayed delivery. An address verification API helps verify and correct the address entered by the customer online so the parcel will be delivered within the agreed and expected time frame. 

  1. Avoids Hassle And Lost Productive Hours

As already explained, API automates tasks that were usually done manually in the past. So, why not take advantage of today’s API technology?  This technology offers utmost convenience, streamlining your eCommerce business’s day-to-day operations. Also, it reduces manual work and stress. 

Just imagine the hassle and stress dealing with returned items. These result in extra work, which involves checking what went wrong, such as validating the address entered by the customer and calling the shipment company to supply the correct information. Because it’s an undeliverable, you need to send the parcel again to the right address, which is a big hassle to your team and can cause lost productive hours.

Avoid such issues altogether by using address verification services, allowing you to focus on more important business matters. 

  1. Increases Website Conversion Rate 

With a built-in address verification tool in an eCommerce website, this technology can increase the website’s conversion rate. Conversion rate refers to how many website visitors buy your products or become paying customers. And, one reason why conversion rates decline is the hassle of dealing with a lengthy and complicated checkout process. 

Integrating an address verification API in your eCommerce website simplifies the checkout process, ensuring the system successfully completes the sale. 

  1. Boosts Marketing Results 

Accurate addresses on your database can boost your marketing results. You can use the verified information to nurture customer relationship, encouraging loyal customers to recommend your products and services to others. 

Of course, continuous customer follow-up and communication through direct mail marketing, email marketing, branded merchandise, and other marketing efforts will reward you in the long run. Gain repeated customers who can become your brand ambassadors or free brand marketers. 

  1. Promotes Better Customer Online Shopping Journey 

Even online marketplace giants have dedicated teams handling eCommerce customer complaints because most undelivered and delayed delivery are caused by address issues. So, one excellent method big companies use nowadays to avoid these problems is employing address verification.

Address validation tools prevent address typos and formatting errors in your database, so parcels will be delivered on time to their intended destinations. By avoiding any mishap, eCommerce businesses will have more happy customers, making their online shopping journey positive and stress-free.

  1. Higher Sales 

Expect higher sales with a straightforward and simplified way of validating addresses. Because your customers are happy with the checkout process and they receive their orders without problems, they’ll likely stick with your company every time they need your products. Therefore, you’ll have more repeated customers and consistently high profits. 

Conscious consumers revolutionize eCommerce because of various reasons, and a study revealed that more consumers are more likely to champion purpose-driven companies, such as sustainable or ‘green companies,’ supporting their products and services. With accurate customer address on your database, you can adopt what major marketplaces do to retain more customers by promoting sustainable means of doing eCommerce business, which can significantly have good business revenue impacts.


Undelivered shipments can negatively affect your eCommerce business, causing customer frustration, unrepeated buyers, and reduced sales. Improve your business process using address verification services. Address verification APIs can help validate addresses and automatically correct them to ensure on-time item shipments. They also prevent long and complicated checkout processes that could change the minds of your potential customers. In return, you’ll have more satisfied and happier customers, and a more profitable eCommerce business.

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