The Importance of Address Validation for E-Commerce

Calcurates is coming up with another powerful feature for Magento 2 e-commerce owners — Address Validation. Address validation checks whether the address entered by your customer at the checkout is correct and whether it is residential or commercial. The benefit is that fewer orders will be sent to incorrect addresses and surcharges for residential addresses might be applied resulting in lower shipping losses.

Address validation confirms whether the street and its postal addresses exist. Customers using address validation can set their delivery address as a commercial or residential one. The address type can be different for each carrier. Carrier shipping rates and shipping options change based on the type of address selected.

Generally, it costs less to deliver to commercial addresses. The reason why is that commercial addresses are usually less scattered and are densely saturated around each other. Residential addresses can be spread throughout the neighbourhoods. Residential addresses have more overhead costs, as it takes more time and gas to deliver shipments there.

The address validation is important because of the cost difference between residential and commercial addresses that e-commerce businesses have to pay. Residential deliveries can add a significant amount of costs to your business. Yet, there are some ways to reduce delivery costs.

The residential surcharge is a fee applied for delivering shipments to home addresses. The fee is usually around $5.

Along with Dimensional Shipping the Address Validation feature helps e-commerce to increase the accuracy of shipping rates and achieve cost-effective shipping.