Let’s face it: incorrect delivery addresses are killing your margins. They’re a silent profit thief, causing delivery delays, returns, and frustrated customers. Imagine this — a single typo in an address and boom! That package is stuck in limbo, your customer is fuming, and your profit margin just took another hit.

Here’s a reality check: nearly 20% of packages aren’t delivered on the first attempt. Failed deliveries don’t just drain billions of dollars from retailers annually— they also crush customer satisfaction and tarnish your hard-earned reputation.

That’s where address verification steps in. This isn’t just a “nice-to-have” component — it’s your line of defense against costly shipping errors. In this article, we’ll dive into how verifying addresses at checkout can prevent costly shipping errors, streamline operations, and boost customer loyalty. It’s time to take control and stop losing money on avoidable shipping mistakes.

What is Address Verification?

Address verification is a security process of validating customer addresses at checkout to ensure they’re legit and deliverable. Let’s understand how it works.

Address Verification Services (AVS)- An address verification service is a system that checks to ensure the customer’s entered delivery address is registered with major shipping carriers. When the customer enters their address into the address fields of the checkout page, the system verifies it against official address databases to confirm the entered address.

Address verification allows businesses to ensure that an address:

• Is valid
• Deliverable by the carrier service provider
• Matches additional customer information entered

Why Address Verification Matters for eCommerce Retailers

Here are key reasons that make an address verification tool a must-have for forward-thinking online retailers.

1. No More Shipping Screw-Ups or Delivery Delays- Messy addresses = angry customers + wasted money. It’s that simple. Every lost package or delayed shipment is another reason for your customer to shop elsewhere. Avoid costly shipping errors due to address issues before they become a bigger trouble for your business.

2. Slashing Costs from Undeliverable Packages- Returns, re-shipping, and customer service time spent fixing preventable errors? That’s a huge waste of resources. Address verification keeps your logistics lean, mean, and profitable.

3. Stomping Out Fraud and Chargebacks- Fraudsters love fake addresses. Don’t give them an inch. Validate every address and avoid surcharges and chargebacks from carriers.

Key Advantages of Address Validation

• Smoother Checkout Experience: Quick, accurate address entry reduces cart abandonment and helps customers complete their purchases without errors.
• Improved Shipping Accuracy: Get the delivery address right every time, reducing your team’s time spent on fixes and manual entry errors.
• Reduced Operational Costs: Fewer returns, fewer support interventions, and lower re-shipping costs all contribute to a leaner, more efficient operation.

Types of Address Verification Solutions and How ShipperHQ Delivers Accurate Results

Let’s break down the different types of address verification solutions so you can find the one that fits your business best.

• Real-Time Verification: Instantly catches address errors at checkout, making sure every package is on point before it hits the truck.
• Batch Verification: Periodically clean up your customer database in bulk. Perfect for loyalty programs and recurring customers.

Pro Tip: Use real-time checks for new orders and batch clean-ups for your existing database. It’s like a one-two punch for address accuracy.

ShipperHQ’s Address Validation feature provides a powerful solution for eCommerce businesses aiming to streamline the checkout process and improve shipping accuracy. Here’s how it works:

• Automated and Manual Options: Choose between automated address type validation or let customers manually select their address type. 
• Powerful Integrations: Works seamlessly with major carriers like UPS, FedEx, and LTL freight carriers. We also integrate seamlessly with all major platforms like Shopify, BigCommerce, Adobe Commerce, and Magento.

ShipperHQ drives significant cost savings by reducing avoidable returns, re-shipment fees, and unexpected surcharges—ensuring every package gets to the right place, the first time.

Address Verification is a Necessity for eCommerce Stores

Address verification is essential for eCommerce stores focused on customer satisfaction and cost management. By implementing address verification, you’re not only creating a better experience for your customers but also reducing costly shipping errors, improving delivery accuracy, and protecting your profit margins.

If reading this article inspires you to improve your shipping accuracy, we are here to support your endeavor. Fill out the form below and we will reach out to you for a discussion.