Address verification tools check the accuracy and validity of a shipping address when a customer places an order online.
Address verification is a simple way to ensure the customer’s address is accurate and standardized. This step makes the delivery process run more smoothly.
It can also save businesses money: Some studies have estimated the cost of an incorrect address at $35 to $70 per order. An e-commerce merchant can save thousands of dollars by adding a tool like the Address Validator app.
[See how much you could save with Address Validator’s Savings Calculator]
Shopify offers various address verification options to its merchants. Shopify address validator apps can include built-in address validation features or integrations with third-party services that leverage address databases to verify addresses.
No matter which method you choose, address verification is an important part of running a successful Shopify store. By verifying shipping addresses, you can help to ensure that your customers receive their orders on time and in the condition they expect.
In this guide, we will demonstrate the key benefits of adding address verification to your Shopify store and share some of the best Shopify apps for standardizing and validating shipping addresses.
Preventing Shipping Errors and Delays
On-time delivery (OTD) is a key business metric for e-commerce sellers. An online store’s ability to delivery packages on time and accurately reflects the organization’s dedication to delivering high-quality service.
Shipping delays or errors erode customer trust and loyalty. Bottom line: these issues are bad for business.
Address verification apps identify an invalid shipping address and prevent it from causing failed deliveries. A shipping address validator looks for errors such as typos, missing information, or invalid addresses that could lead to failed deliveries or packages being sent to the wrong address.
Address Validator, for instance, suggests to a customer the correct address or alerts the customer when an address is undeliverable.
“We use this app to help reduce address submission errors, most importantly for international orders. It has helped us reduce the amount of user submission errors, reducing the manual work required on our side when a user enters an invalid address,” said Address Validator client Alo Yoga.
Avoiding undeliverable addresses can save Shopify stores money on shipping costs and improve customer satisfaction.
[Read more: Prevent Shipping Errors with Address Validator]
Ensuring Accurate Deliveries
Today, nearly 60% of customers say that retailers are “mediocre at best” when it comes to the delivery experience. ECommerce businesses that aren’t able to meet customer expectations face a significant market disadvantage. At a minimum, customers expect their orders to arrive on time and at the correct address.
Accurate deliveries are essential for customer satisfaction. When customers receive their orders on time and in the condition they expect, they are more likely to be satisfied with their shopping experience. This can lead to repeat business and positive reviews.
During the checkout process, address verification can identify incomplete, misspelled, or outdated address information. It can also correct errors in the address, such as the addressee’s name, street address, city, state, or postcode. Certain address verification providers will also ensure that addresses are formatted correctly. This is important for ensuring that shipping labels are generated correctly and that packages are delivered to the correct address.
One user noted that adding a plugin to their online store during the order confirmation process is seamless. “Easy set up and easy to use! We use it to format customer addresses and prevent extra-long addresses from being rejected by couriers,” said Liforme, a UK-based online store.
Address verification apps can be added at different stages of the checkout process. Depending on the type of Shopify account you have, it can be included during checkout, at order confirmation, or post-checkout.
[Read more: The Ultimate Guide To Setting Up and Optimizing Shopify Shipping]
Reducing Fraud and Chargebacks
A chargeback is a reversal of a payment made with a credit or debit card. It can happen if the cardholder disputes the charge. For example, if a customer believes the product or service they purchased was not as described, or if they did not authorize the charge, they may claim a chargeback.
When a chargeback claim is found to be valid by the credit card company, the merchant will be required to refund the customer’s money. The merchant may also be charged a fee by the credit card company.
Chargebacks can be a significant financial burden for merchants. Research shows that merchants lose an average of $3.75 for every $1 lost to chargebacks and fraud.
Fraud and chargebacks are serious concerns for any eCommerce business, and Shopify store owners are no exception.
An address verification tool prevents users from nonexistent or invalid addresses to carry out fraudulent transactions. Fraudsters often use invalid addresses to make purchases. By verifying addresses, you can help to prevent these transactions from taking place – not to mention save on shipping costs.
Address verification corrects errors in addresses, too. These errors are often made purposefully by fraudsters to initiate the chargeback process. Address Validator will prevent these transactions from taking place altogether.
It can help to ensure that addresses are formatted correctly. This is important for ensuring that shipping labels are generated correctly and that packages are delivered to the correct address. Fraudsters often use incorrectly formatted addresses to make fraudulent purchases, so by verifying addresses, you can help to prevent these transactions from taking place.
And, eCommerce merchants can set parameters around what types of addresses they’re willing to ship to. For instance, you could set rules to prevent delivery to PO boxes, DHL pack stations, parcel lockers, or other suspicious addresses.
“[Address Validator is] very helpful in preventing chargebacks on incorrect shipping addresses. We are a small family-owned business so every cent we can save is extremely important to us,” said Firstmate Controls Inc.
Choosing an Address Verification Solution
Address verification solutions come in many shapes and forms. Determining the right tool for your Shopify store depends on your budget, the size of your store (and your order volume), and your needs.
For instance, if you are looking for a comprehensive solution that is easy to use, a third-party address verification service is a good option. If you are on a budget or have specific needs, a custom address verification solution may be a better choice.
Shopify’s Built-in Address Verification
Shopify’s built-in address verification feature uses data from the USPS and other shipping providers to check the accuracy of addresses. Shopify uses the SmartyStreets API to automatically check the address entered by the customer during the checkout process. If the address is deemed invalid, an error message is displayed, prompting the customer to correct it.
However, Shopify’s built-in address verification feature is not as comprehensive as some third-party services.
Third-Party Address Verification
Shopify has a wide range of third-party apps available in its app store that offer address verification services. These apps integrate with the Shopify platform and provide additional features and flexibility for address validation.
Many third-party apps also offer advanced verification algorithms, geocoding, international address support, and customization options. These services use a variety of data sources to verify addresses, including the USPS, Royal Mail, and other leading providers.
[Read more: Address Validation Apps For Shopify Online Stores]
Address Validator is one of the highest-rated options in Shopify’s app store. Address Validator gets raving reviews for its customer support and ease of use. This app reduces instances of failed deliveries to improve customer satisfaction, save merchants redelivery costs, and decrease support tickets from customers trying to resolve a wrong address.
Address Validator is used by big brands like Cotopaxi, GM, and National Geographic, as well as thousands of other stores.
Postal Service Address Verification
Many postal services provide address verification services that can be integrated into Shopify stores. These services utilize the postal service’s own address database and verification algorithms to validate addresses. Integrating with the local postal service can be particularly beneficial for businesses shipping within a specific country.
As you consider how to verify customer addresses on Shopify, consider factors such as cost, ease of use, and accuracy. Any address verification solution you choose should have the features that you need, such as the ability to verify international addresses or the ability to block specific types of addresses.
Manual Address Verification
Of course, you can verify shipping addresses by hand, for free. This process is time-consuming and involves, essentially, searching for each addressee’s name, street address, city, state, and ZIP code in a database or map tool like Google Maps. It requires checking each transaction for typos and standardizing address formats by hand (such as changing ST to Street or St).
Manual address verification might be right for your store when you first start out, but as demand increases, it will be difficult to manage this process.
Ultimately, Shopify’s app store provides a variety of options, and merchants can also explore third-party solutions or consult Shopify’s support and documentation to find the most suitable address verification solution for their business.
Bottom Line
Shopify merchants can save money, improve customer satisfaction, and streamline order fulfillment using address verification tools. Solutions like Address Validator can help prevent shipping errors and delays, ensure that customer expectations are met (and exceeded), and reduce the risk of chargeback fraud.
Although there are many types of address verification tools available, Shopify merchants of all sizes can benefit from Address Validator. Address Validator is free to install; plus, the first 100 orders are free — it charges $0.04 per order thereafter.
The ROI is clear. When the cost of an incorrect address at $35 to $70 per order, and merchants are paying even more in chargeback fees, adding Address Validator to your eCommerce site is a no-brainer.
Learn more about Address Validator and try it for free.
