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Address Verification Software - How Much Does Address Correcting Cost Your Business?

A small typo may seem like a minor inconvenience, but it can add up over time. Whether your customers order from you online or over the phone, they can make errors when entering their shipping information. These mistakes could result in your company having to reroute and reship packages. This can cost you money in labor costs and extra material fees for packaging. Additionally, these extra costs can create a bad customer experience and hurt your reputation as a brand.



The most common error is a simple typo or misspelling of an address element. Often, these errors occur when someone manually enters an address into your database. It’s also not uncommon for a person to mishear an address when over the phone, leading to a mistyped street name or missing apartment or suite number. These errors can be difficult to catch manually and are caused by many factors, including a lack of consistency in address formats and data degradation over time.


Etailers and direct sellers spend millions of dollars each year reshipping packages because of address errors. These errors can also cost companies in other ways, such as lost customer relationships or extra labor in contacting customers to resolve the issue. Address verification software can reduce these costs by catching and preventing incorrect addresses before they reach the carrier.


This software can automatically standardize an entire address field by detecting major errors like a missing primary building/house number, ZIP Codes that don’t match the city, or addresses with unallowed format elements (like ST, RD, or AVE). It can also detect and prevent inconsistencies in formatting, such as using N instead of NW in a neighborhood address, which is a common mistake that can be caught with simple software tools.


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