Address Verification for Logistics – the Road to Accurate Shipping

November 25, 2022


Online shopping is reshaping the customer experience regarding the purchase of medicines, home appliances, clothes, and other such products. Retailers are embracing digitization and while collaborating with logistics companies, they pace up faster deliveries. Over 21.5 billion parcels move across various areas which makes address verification crucial for shipping services for delivering packages to right buyers. 

Typological errors, dropping pins at wrong locations, and data discrepancies result in additional correction charges. Furthermore, e-commerce stores face chargebacks and refund claims. Therefore, establishing efficient address verification systems has become a liability for shipping services. The AI-powered IDV solutions enable logistic companies to cross-check customer details and eliminate any discrepancies from stores’ end. This article discusses ways online address verification accelerates frictionless shipping. 

Address Verification Systems – Ensuring Timely and Accurate Shipments 

Manual data validation involves a high risk of human error which leads to data discrepancies and failed deliveries. In this case, not only do the e-commerce stores pay additional correction charges but the logistics companies also bear extra shipping costs. Therefore, parcel delivery services require robust address verification solutions to streamline accurate freightage. AI-powered IDV solutions are efficient, tech-driven, and automated which not only eliminates the need for manual interpretation but also reduces friction.

Online verification of address is emerging as the new normal in logistic companies’ IDV mechanisms. It reduces fraud attempts by allowing customers to provide supporting documents as proof of identity. By using OCR and ML tools, the system then validates location information to limit data discrepancies. Hence, logistic companies can overcome failed deliveries while consuming fewer resources. 


Inaccurate shipments can lead to the downfall of a brand’s reputation, financial stability, and market worth. On the contrary, online address verification analyzes geolocation which adds an extra layer of accuracy to parcel deliveries. They further benefit logistic companies in the following areas:

Enhance Positive Checkout Experience 

Logistic companies are the intermediaries between online stores and customers. They pick up parcels from e-commerce retailers and dispatch them to actual buyers. In this case, accurate location information is a topmost priority. Otherwise, either the package will be misdelivered or returned. While facilitating customers with online shopping services, offering a frictionless verification of address is also a liability. 


Logistics companies need to integrate efficient AI-powered IDV solutions to verify address. With ML tools in place, the system automatically extracts required information from supporting documents and enables delivery services to ship orders to right locations. This way, logistics companies can also enhance the customer checkout experience and eliminate risk of abandoned carts. 

Standardize Buyer Location Details

Millions of packages are delivered by shipping companies on a daily basis across various regions. While every country has different requirements regarding the collection of customer data, address verification becomes challenging. Furthermore, manual authentication makes this process further lengthy, error-prone, and time-consuming.   


Logistics companies require robust IDV solutions for verifying an address and accurately locating customers. With geotagging and document validation, shipping services can better analyze buyers’ whereabouts. Integrating online address verification also limits fraud as the automated ML tools leave less room for imposters. Furthermore, logistic companies can access global registers for secure, on-time, and accurate international package deliveries. 

Limits Financial Loss

Logistic companies validate address to wave off financial losses they might have because of customers entering inaccurate details. Furthermore, data discrepancies cause lost items, false chargeback claims, and redeliveries. In return, logistics companies have a high chance of experiencing financial loss. However, integrating AI-powered address verification solutions can limit these issues from re-arising. 

Overcomes Excessive Shipping Costs 

Online retailers and logistics companies let go of a considerable amount due to inaccurate or failed deliveries. While re-shipping the parcels, freightage services experience excessive use of manpower, fuel, operational charges, and resources. Hence, verifying address online is the logistic companies’ key to reducing additional spending of money. 

Mitigate False Chargebacks 

Fraudsters impersonate legitimate buyers to file for false chargeback claims and avail additional money. With online address verification solutions in place, logistic companies can mitigate identity theft and differentiate between accurate or synthetic location details. Furthermore, with geo-tagging and real-time customer identification, verifying an address becomes more reliable.  

In the End

Logistic companies are experiencing an increase in failed deliveries and inaccurate analysis of customers’ locations. These drawbacks not only expose e-commerce platforms to financial instability but also increase use of additional resources for shipping services. This makes integrating online address verification solutions a must-have for logistics companies. In return, they can reduce data discrepancies and typological mistakes. Hence, AI-powered address verify services identify shipping restrictions to overcome inaccurate deliveries and enhance customer experience. 

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Andi Perullo de Ledesma

I am Andi Perullo de Ledesma, a Chinese Medicine Doctor and Travel Photojournalist in Charlotte, NC. I am also wife to Lucas and mother to Joaquín. Follow us as we explore life and the world one beautiful adventure at a time.

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