It is important to look for real-time verification, auto-correction, batch processing, secure data handling, and integration with e-commerce platforms when selecting address verification software.
It converts the address into the proper format to find the location easily and also improves consistency across a database.
This software can help e-commerce businesses in reducing failed deliveries, optimizing logistics, minimizing costs, and improving customer experiences.
Implementing address verification software can be a proven strategic investment for your business if it works on seamless logistics and deliveries.
Common delivery challenges, such as incorrect addresses, non-standard formats, and high return rates, can be solved with address verification.
According to a survey done in 2021, 8% of first-time deliveries fail, costing retailers an average of $17.20 per failed order, which is an amount of approximately $197,730 per year. (source: wisesystems.com)
Similarly, in the UK, retailers face losses of around £183,000 per year due to lost or failed deliveries. (linkedin)
If you are also a part of our continuously growing world of logistics and e-commerce, you can understand the importance of timely deliveries and their effect on customer satisfaction. It is something that not only makes customers disappointed but also increases the financial burden on retailers.
These data show the importance of address verification software, as they help in finding the correct location so that packages reach their destination that too on time. This article will tell you more about its features and how it works. So, without wasting any time, let’s get in.
This software checks the address by cross-checking it with an official database. It looks for the errors and corrects the formatting to ensure that the shipping information is correct.
The validation of this software also tells if the address is of somebody’s home or office. All of these capabilities can be used by companies to prevent delivery failures and optimize logistics.
VPS Canada: Simplifying Delivery in Canada
VPS Canada is one of the most reliable address verification software that provides customized services in the Canadian market. It offers a lot of services like bulk data analysis, address validation, data cleansing, and more for helping in the process of shipping and mailing.
Due to its vast database and advanced algorithms, it also helps businesses in making accurate deliveries, reducing logistic-related issues, and increasing customer satisfaction.
Common Challenges in Deliveries that Address Verification Software Can Address
Address verification software helps us in a lot of ways, but that doesn’t mean it has no challenges to face. Here is a list of those challenges that it faces while helping us in our businesses.
Incorrect or incomplete addresses
Irregular address formats
Failed deliveries because of invalid addresses
high return rates
higher shipping costs due to address errors
outdated data
Intriguing Insights The global address verification software market is on a strong and steady growth path, which was valued at $10.61 billion in 2023 and is expected to grow at a CAGR of 11.75 from 2024 to 2030, reaching nearly $23.10 billion. (Source: Maximize Market Research)
What Are the Key Features to Look for in Address Verification Software?
When you are choosing an address verification software, make sure you look for these major features given below:
Real-time Address Verification – Make sure that the software has immediate validation and correction services so that it can correct errors at the time of data entry only and improve its quality.
Standardization – It converts the address into the proper format to improve consistency across a database.
Auto-correction – it helps in correcting typing mistakes and formatting errors so that the address can be found easily.
Integration with E-Commerce Platforms – So that it can be easily compatible with most of the e-commerce platforms and provide seamless operations with your existing systems.
Batch Processing – This is the ability to enable bulk verification for large data sheets to save both time and effort.
Secure Data Handling – It is there to protect the data from any potential threats through encryption and laws.
Flexible Pricing – To meet the needs of all levels of businesses, it is important to have tiered pricing.
How Can Address Verification Software Benefit E-Commerce Businesses?
A clothing retailer started using address verification software by incorporating it into their e-commerce platform, which instantly corrected user-inputted errors. Also, this led the company to a 20% decrease in delivery failures and an improved checkout experience for customers.
This shows that the address verification software can help e-commerce businesses in different ways; a few of them are:
Reduced Failed Deliveries and Improved Customer Satisfaction
It checks the accuracy of shipping details so that businesses can reduce their failed deliveries and delays while improving customer experiences.
Optimized Logistics and Reduced Costs
It helps in preventing wrong shipments, which reduce operational costs, waste of resources, and unnecessary returns, thus saving money.
This software makes sure that businesses that are operating internationally have full compliance with local postal standards.
DO YOU KNOW? In 2016, a tourist in Iceland accidentally drove 250 miles in the wrong direction just because Google Maps misinterpreted a single letter in the address. Well, address verification could have saved the day!
What Are the Cost Implications of Implementing Address Verification Software
After reading all this, you must be thinking about implementing this. So, let’s come to the point and discuss its implication cost, which depends on factors like:
Direct or upfront costs, which have licensing costs, software, and subscriptions added in it.
Implementation and maintenance costs include software integration, setup, training, and maintenance expenses.
Cost saving means a reduction in the no. of failed deliveries, shipping errors, and operational issues.
The Bottom Line
Address verification software is a term that you would have understood till now. Its benefits for business, including accuracy, reduced costs, and most importantly, customer satisfaction, make it an important investment for you to be in this competitive industry. So don’t waste time and get started now!
FAQs
How does address verification software work?
It compares the address with the postal database to standardize, correct, and validate it.
What are the common challenges in deliveries that address verification software can address?
It checks for incorrect addresses, irregular formats, failed deliveries, and high return rates.
What are the key features to look for in address verification software?
The major features to look for in an address verification software are real-time address verification, standardization, auto-correction, batch processing, and secure data handling.
How can address verification software benefit e-commerce businesses?
It can help businesses in saving time and money by reducing errors and failed deliveries, optimizing logistics, increasing conversion rates, and preventing fraud.
What are the cost implications of implementing address verification software?
The cost implications of address verification software depend on different factors like licensing and setup costs, then training and maintenance expenses, but all of these are overshadowed by its savings from reduced errors and better productivity.
Gaurav Rathore
