The quality and accuracy of customer data are among the component that creates the base of running a successful e-commerce business. Any discrepancy in information relating to location, personal identity, or payment methods can result in poor services, negative client experience, and a reduction in buyer retention. Furthermore, amid an increase in online retail fraud amounting to a loss of $41 billion in 2022, e-commerce brands can not rely on manual data collection methods.
E-commerce retailers require robust address verification solutions to mitigate failed deliveries and improve customer experience. Furthermore, with AI-powered IDV tools, they can eliminate data discrepancies while shipping parcels to the right buyers.
This article entails the major benefits of verifying an address digitally and how it aids in accurate deliveries.
Perks of Using AI-Powered Address Verification Systems
Customers often make typological mistakes such as incorrect street names, postal codes, or any other location information. As a result, retailers are unable to identify the exact place to deliver parcels and mention wrong details. Later the shopping companies reach inaccurate addresses. This is where chargeback costs, correction charges, and re-routing fees intervene increasing financial loss for merchants.
E-commerce businesses must invest more in incorporating online address verification to decrease additional charges. The use of AI-powered IDV solutions drives benefits beyond cost-effectiveness and accuracy. They help retailers to validate address without discrepancies that help them increase profit returns on every purchase. Hence, e-commerce platforms can cut down on failed deliveries and uphold their reputation.
Read along for more benefits of using automated address verification systems.
Accurate Customer Profiling
The application of address verification tools does not end with data collection, it also expands to accurate analysis of details. These AI-powered IDV mechanisms ask buyers to upload documents that support their identity claim. Later they extract buyers’ information by using OCR tools. Deploying ML algorithms, these mechanisms validate address with enhanced accuracy.
Retailers can ensure the authentication of every detail such as street names, regions, states, and others that manual IDV methods are unable to capture. Hence, this ultimately aids in accurate customer profiling.
Route Calculation and Customer Mapping with Geo-Tagging
Online address verification benefits retailers and shippers alike. In case of former, merchants can reduce additional delivery charges. The latter becomes able of cross-verifying address across global registers. Furthermore, with geo-tagging analysis, e-commerce sites can ensure buyers are present at time of placing an order. It further helps extract location coordinates that help ensure accurate parcel shipping.
Time Effectiveness for Data Collection
Retailers integrating AI-powered IDV tools to verify address can not only save operational costs but also additional time. During manual interpretation, the verifier can take up to days for identifying forgeries. Furthermore, they do not guarantee enough accuracy. This makes online address verification a relatively more reliable option as it automates data collection and remote buyer onboarding.
Improves Brand Reputation and Customer Experience
The perks of using AI-powered IDV solutions are never-ending. They enable retailers to increase brand awareness across global customers and uphold their integrity. Furthermore, with secure online shopping services, they can increase clientele while staying put with their demands regarding privacy. Address verification systems enable retailers to enhance customer experience by reducing friction through deployment of automated data collection tools.
With frictionless onboarding, swift checkouts, and accurate on-time deliveries, online address verification helps e-commerce business owners can stand out in the competitive market.
Better Database Security
Retailers using advanced IDV checks to verify address can also keep their databases secure from external access. With advanced document validation, location detection and cross-identity authentication, they can record accurate information. Furthermore, with periodic checks, merchants will identify fraudulent details in real time. As a result, they can prevent false chargeback claims, returned shipments, and transaction scams.
Shipment companies also benefit from updated databases as they can easily access and cross-match customer location details. Furthermore, they can validate address and erase obsolete data. With automated data extraction, analysis, and storage solutions, e-commerce business owners also stay put with regulatory requirements regarding updated records.
Summarising the Facts
Online shopping is the new norm of purchase worldwide. Customers prefer easy surfing, swift checkouts, and remote deliveries over physical purchases. Therefore, e-commerce businesses that deal with huge datasets can not depend on manual address verification methods anymore. Given the uncertainty in fraud and data discrepancy risks, retailers require more than just accurate information collection.
Online address verification tools offer automated services like data extraction, geo-tagging, and seamless customer onboarding. These innovative AI-powered IDV mechanisms not only ramp up retailers’ game against fraud instances and help retain more clients but also enable them to ensure secure services. Hence, online verification of address is a major contributor to the e-commerce sector’s growth.