2022-07-28

Address Verification Service: Ensuring Accurate Deliveries for eCommerce Success

Justin Wiley

Justin Wiley

In the fast-paced world of eCommerce, accurate and timely deliveries are paramount to success. Address Verification Service (AVS) emerges as a powerful tool for eCommerce teams seeking to optimize their shipping processes and ensure reliable deliveries. By cross-referencing customer-provided addresses with comprehensive databases, AVS validates and standardizes shipping information, minimizing errors and reducing costly returns. In this article, we delve into the significance of AVS for eCommerce businesses, exploring its benefits, working principles, and available providers. Whether you're a seasoned eCommerce professional or a budding entrepreneur, read on to discover how AVS can elevate your shipping operations and provide your customers with a seamless, top-notch shopping experience.

What is an Address Verification Service?

What is an Address Verification Service?

Address Verification Service (AVS) is a crucial tool for eCommerce businesses that want to ensure accurate and reliable deliveries to their customers. AVS is a process that validates the accuracy of shipping addresses provided by customers during the checkout process. It checks the address against a reliable database to confirm its legitimacy and correctness.


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What is an Example of Address Verification Service?

An excellent example of an Address Verification Service is "SmartyStreets." SmartyStreets offers a comprehensive and reliable solution for businesses looking to validate and standardize their customers' shipping addresses. It is widely used by eCommerce companies to ensure accurate and prompt deliveries.

How SmartyStreets Works:

API Integration

SmartyStreets provides an easy-to-use API that seamlessly integrates into the checkout process of eCommerce platforms.

Real-Time Verification

When a customer enters their address during checkout, SmartyStreets instantly verifies and cross-references it with their vast address database.

Data Standardization

The service standardizes the address data, ensuring it complies with postal authorities' format.

Geocoding

SmartyStreets also offers geocoding capabilities, converting addresses into geographical coordinates for precise location information.

Accurate Results

The results are returned with match accuracy codes, guiding businesses on the level of correspondence between the customer-provided address and their database.

How Does Address Verification Service Work?

How Does Address Verification Service Work?

Address Verification Service operates through a well-defined process, ensuring the accuracy of shipping addresses and reducing delivery errors.

Step-by-Step Process:


1. Data Collection

Customers provide their shipping address details during the checkout process.


2. Address Comparison

The provided address is compared against a reliable database of valid addresses.


3. Data Standardization

The address data is formatted to match the postal authorities' standards, allowing easy identification of potential errors.


4. Address Correction

If any discrepancies are found, the service suggests corrections to ensure successful delivery.


5. Return Codes

The system generates return codes that indicate the level of match between the provided address and the database records.

Who Provides Address Verification Service?

Who Provides Address Verification Service?

Several reputable companies offer Address Verification Services to cater to the needs of eCommerce businesses and streamline their shipping operations.

Notable Providers Include:

  • SmartyStreets
  • Melissa Data
  • Lob
  • Experian Data Quality
  • UPS Address Validation API
  • USPS Address Verification (e.g., CASS-Certified vendors)

Each provider may have specific features, pricing, and integration options, so businesses should choose the one that best suits their requirements.


What is the Address Verification Service Fee?

The cost of an Address Verification Service can vary depending on the service provider, the volume of transactions, and the level of service required.


Pricing Models:

Pay-as-You-Go

Some providers offer a pay-as-you-go pricing structure, where businesses are billed based on the number of address verifications they perform.

Subscription Plans

Other providers may offer subscription-based plans with a fixed monthly fee, allowing businesses to perform a certain number of verifications within that period.

Enterprise Solutions

For high-volume users or large enterprises, customized enterprise solutions may be available, tailored to their specific needs.

Additional Considerations:

Some providers may offer free trial periods or limited free verifications to allow businesses to assess the service's suitability before committing to a plan.

It's essential to factor in the cost-effectiveness and accuracy of the service when evaluating different pricing options.

What is Physical Address Verification Service?

What is Physical Address Verification Service?

Physical Address Verification Service specifically focuses on validating and confirming the physical existence of an address, ensuring its deliverability.

Key Features:

On-Site Inspection

Some providers offer on-site inspections, where representatives physically visit the address to verify its authenticity.

Property Ownership Verification

This service may include validating property ownership records to ensure the address belongs to the individual or business claiming it.

Real-Time Reports

Businesses receive real-time reports and documentation to prove the physical existence of the address.

Use Cases

Physical address verification is particularly valuable for industries dealing with high-value goods, sensitive documents, or regulatory compliance requirements.


Why is Address Verification Service Important?

Address Verification Service is of paramount importance for eCommerce teams for several reasons:

Minimizes Shipping Errors

AVS helps in reducing shipping errors caused by incorrect or incomplete addresses. This results in a decrease in undeliverable packages and costly returns.

Enhances Customer Experience

By using AVS, eCommerce businesses can ensure that their customers receive their orders on time, leading to improved customer satisfaction and loyalty.

Cost Savings

Address verification can lead to cost savings by reducing the expenses associated with redelivery attempts and returns due to address errors.

Protects Against Fraud

AVS can be an essential tool in fraud prevention. It helps identify suspicious or potentially fraudulent transactions by cross-referencing address details.


How Does Address Verification Service Work?

The process of Address Verification Service involves the following steps:

Address Data Collection

During the checkout process, customers provide their shipping address details.

Address Comparison

The provided address is compared with a database of valid addresses to check for accuracy and authenticity.

Data Standardization

The address data is standardized to match the format used by postal authorities, making it easier to identify potential errors.

Address Correction

If the system detects inaccuracies or typos in the address, it suggests corrections to ensure proper delivery.

Return Codes

AVS generates return codes that indicate the level of match between the provided address and the database records. These codes help eCommerce teams determine the next steps for order fulfillment.


What are the Benefits of Address Verification Service?

Address Verification Service offers numerous benefits to eCommerce businesses:

Reduced Shipping Costs

By ensuring accurate deliveries, businesses can avoid the expenses associated with redelivery attempts and returns due to address errors.

Improved Delivery Times

AVS minimizes shipping delays caused by incorrect addresses, leading to faster and more reliable deliveries.

Customer Trust and Satisfaction

Accurate and timely deliveries enhance the trust customers have in a brand, leading to increased satisfaction and positive reviews.

Fraud Prevention

AVS acts as a valuable tool to detect and prevent fraudulent transactions, protecting businesses from potential financial losses.


Are There Any Downsides to Address Verification Service?

While Address Verification Service is highly beneficial, there are a few considerations to keep in mind:

False Positives

In some cases, AVS might flag legitimate addresses as invalid, leading to order delays and customer frustration. Regularly reviewing the AVS results can help mitigate this issue.

International Limitations

AVS might be less effective for international addresses, as databases primarily focus on domestic locations. Additional verification methods may be required for global shipments.


What are the Alternatives to Address Verification Service?

In situations where AVS may not be suitable or practical, eCommerce teams can explore alternative approaches to ensure address accuracy:

Delivery Address Confirmation Email

Sending a confirmation email to customers after order placement, requesting them to review and verify their shipping address.

Geocoding Services

Utilizing geocoding services to convert customer address data into geographical coordinates, which can be cross-checked for accuracy.

Manual Review

Employing a manual review process to assess and correct any potential address discrepancies before order fulfillment.


Final Thoughts about Address Verification Service

Address Verification Service is a vital tool for eCommerce teams aiming to streamline their shipping processes and enhance customer satisfaction. By leveraging sophisticated algorithms and comprehensive databases, businesses can ensure accurate deliveries and minimize costly shipping errors. Whether you're a seasoned eCommerce professional or just starting in the industry, implementing Address Verification Service can significantly elevate your operations and build trust with your customers.

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Frequently Asked Questions about Address Verification Service

How much does an Address Verification Service cost?

The cost of AVS can vary depending on the service provider and the volume of transactions. Some platforms offer pay-as-you-go pricing, while others have subscription-based models.


Is Address Verification Service compatible with all eCommerce platforms?

Most reputable Address Verification Service providers offer integrations with popular eCommerce platforms. However, it's essential to check for compatibility with the specific platform you are using.


Can Address Verification Service be used for international shipments?

While AVS is primarily designed for domestic addresses, some providers may offer international address verification services. However, the accuracy might vary for non-domestic locations.


How often should I update the address database used by the verification service?

Regularly updating the address database is crucial to ensure the most accurate results. The frequency of updates may vary based on the service provider's recommendations and the volume of orders.


Does Address Verification Service work for PO Box addresses?

Yes, many AVS systems can validate and verify PO Box addresses, ensuring accuracy for deliveries to these locations.


What happens if an address is flagged as invalid by the Address Verification Service?

If an address is flagged as invalid, eCommerce teams can review the return codes provided by AVS to determine the level of mismatch and decide whether to proceed with the order or contact the customer for address confirmation.


What is the Process of Digital Address Verification?

Digital Address Verification follows a streamlined process using sophisticated algorithms and databases to verify the accuracy and validity of shipping addresses provided by customers during online transactions. Here's how it works:

  • Data Collection: Customers enter their shipping address details on the eCommerce platform during checkout.
  • Real-Time Validation: The system immediately checks the address against a vast digital database containing verified addresses.
  • Data Standardization: The address data is formatted to adhere to postal authorities' standards, ensuring uniformity for accurate verification.
  • Geocoding (Optional): Some address verification services offer geocoding to convert addresses into geographical coordinates for precise location information.
  • Verification Results: The system provides verification results, indicating the level of match between the provided address and the database records.


How Does a Verification System Work?

A verification system employs advanced algorithms and databases to assess the accuracy of shipping addresses in real-time. Key steps of the verification process include:

  • Input Data Analysis: The system analyzes the address data provided by customers.
  • Database Comparison: The input address is compared against a comprehensive database of verified addresses.
  • Data Standardization: The address data is standardized according to postal formatting guidelines.
  • Address Correction: If any discrepancies are detected, the system suggests corrections to ensure successful delivery.
  • Verification Codes: The system generates verification codes to communicate the level of match between the provided address and the database records.


Why is Address Verification Needed?

Address Verification is essential for eCommerce businesses to ensure smooth order fulfillment and improve customer experience. Some key reasons why verification is needed include:

  • Delivery Accuracy: Accurate addresses reduce the risk of shipping errors and undeliverable packages.
  • Cost Savings: By avoiding unnecessary return shipments, businesses save on operational expenses.
  • Customer Satisfaction: Timely and accurate deliveries lead to satisfied customers and increased brand loyalty.
  • Fraud Prevention: Address verification can help identify and prevent fraudulent transactions, safeguarding businesses from potential losses.

What is the Difference Between Address Verification and Address Validation?

While address verification and address validation are related, they serve different purposes in the eCommerce context.

  • Address Verification: Address verification involves confirming the accuracy and deliverability of shipping addresses by comparing them against reliable databases. Its primary goal is to ensure packages reach the intended recipients without errors.
  • Address Validation: Address validation, on the other hand, focuses on checking the completeness and correctness of address data entered by customers. It aims to prompt users to provide accurate and complete details during the checkout process.

The two processes complement each other to enhance the overall quality of address data and order fulfillment.


How is Physical Address Verification Different from Digital Address Verification?

  • Physical Address Verification: Physical address verification involves physically inspecting the location to confirm its existence and authenticity. It is often used for sensitive shipments, regulatory compliance, or high-value goods.
  • Digital Address Verification: Digital address verification, as discussed in the main article, uses technology and databases to validate shipping addresses in real-time. It is widely used for eCommerce operations to enhance accuracy and reduce shipping errors.

While physical address verification requires on-site inspections, digital address verification offers instant results through online tools and APIs, making it more suitable for high-volume eCommerce operations.


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