eCommerce Tips & Trends

How Address Verification Systems Can Save Your Sales

Learn how an address verification system can help you avoid failed deliveries and prevent you to disappoint your customers.
How Address Verification Systems Can Save Your Sales

By Jules


September 13, 2018

Research has shown that on several occasions, approximately 1 in every 3 customers abandon cart as a result of complicated checkout related to address issues.

This is where a reliable address verification system (AVS) comes into play. If you don’t want your customers to be part of this statistic, then it's time to make sure that you have an AVS installed!

What is an Address Verification System (AVS)?

An AVS is designed to accurately check a customer’s address when entered to ensure that it matches with their registered address for major shipping couriers. With this system, many eCommerce stores have been able to limit checkout errors, significantly improving conversion rates.

4 Different types of Address Verification System

There are different types of AVS that you can choose from:

  • Drop-down verification: Studies have shown that approximately 55% of top 100 US online entrepreneurs make use of this type of address verification. From the drop-down menu, your customers are given the option to choose their city, state, and country.
  • Partial verification: This type of AVS is being used by approximately 22% of top 100 US internet entrepreneurs. With this system, once a customer enters their zip code, the city and state fields are automatically populated, while the rest of the data is manually entered.
  • Post entry verification: This type of AVS is used by approximately 13% of the top 100 US online retailers. After manually entering their data, a pop-up shows up with possible address alternatives. The customer then chooses the alternative that matches his or her address.
  • Type-ahead verification: This particular AVS is only used by 6% of the  top 100 US retailers. It works by accurately suggesting addresses for customers the moment they start typing their address, saving them a lot of time and energy.

The importance of address verification systems

Just like most other applications and software that are being utilized by online retailers, there are several advantages that come with using AVS:

  • Increased conversion rates: Since many customers abandon their shopping carts when they are presented with rigorous address input options, conversion rates are significantly improved when customers have to enter their address with the help of any type of AVS.
  • Reduced loss of revenue: When a failed delivery occurs, retailers can lose money because they either have to refund the customer or pay additional costs for re-delivery. AVS significantly reduces the chances of failed deliveries due to incorrect addresses.
  • Improved customer experience: One thing that greatly impacts on every business is the ability for the business to retain its existing customers. With a reliable AVS, deliveries are successfully completed, building trust in the brand and encouraging repeat purchases.

Here are a few service providers you can consider using:

  • Loqate: This AVS provider helps online retailers maintain top-quality customer data and at the same time, improve conversion rates while further driving their business efficiency.
  • Experian: This AVS provider offers internet retailers verification systems that ensure that every address is free of any duplicates, making them ready to use the moment a customer is done entering their data.
  • Smarty Streets: This provider offers significantly simplified verification system that makes shopping easier for customers, no matter what device they are shopping from.


Collecting accurate customer details at checkout are crucial to ensuring that your product will successfully make it to your customer. It's definitely worth having some type of shipping address validation that will make checkout frictionless, allowing you to enjoy better conversion rates and provide a great customer experience.