Definition: An address verification service is a system that checks to ensure the customer's entered address is registered with major shipping carriers. Ecommerce stores can use this verification process to reduce the number of checkout errors, increasing conversion rates in the process.
Address verification is important — after all, if the product isn't shipped to the correct place, someone is going to have to pay for shipping to have it routed correctly. In some cases, the company might actually end up losing money on that order. However, verifying that addresses are correct isn't the only reason to use a verification service.
Effective address verification provides a better customer experience, which can significantly increase conversion rates. Several reasons include:
This information can also be used to auto-complete the billing section of the checkout page, since most customers have identical shipping and billing addresses.
While bringing in new customers is a high priority for most ecommerce retailers, optimizing the traffic that's there can have just as much — if not higher— returns. Address verification services help customers finish checking out, ensuring there are no logistical roadblocks between a customer and their purchase.