Address Validation

Definition

Address Validation

Address validation is the process of verifying that a shipping address exists, includes all required information for successful delivery, and is presented in a standardized format. In the US, companies can verify addresses through the United States Postal Service’s (USPS) authoritative database to confirm valid mailing addresses.

Purpose of Address Validation

The purpose of address validation is to ensure that a shipping address is “valid.” Some examples of validation criteria include:

Verification that the address represents a verified location
Is the street or PO address listed? Or not found?
Is the information complete?
Is the location a vacant or new building that is unoccupied or not recognized by the USPS database?
Does the zip code match the street/city/state?
Is the address classified as a residential or commercial address?

If the address is incorrect or does not exist in the USPS database, it is considered “invalid.” If invalid, the shipment will not be sent, or worse, it will be sent but will not reach its destination.

Why is Address Validation Important?

B2B and B2C companies require valid address data when processing orders/shipments for carrier freight rating, routing, and actual shipping charges.

If the address is invalid and shipments do not make it to their destinations, the costs of returns, delayed shipments, or canceled orders can increase.

Carrier Surcharges for Address Corrections

If you ship packages via a parcel carrier such as FedEx, UPS, or DHL, the carrier also uses address validation software before processing the shipment through its systems. If the carrier’s system detects an incorrect address, it will usually correct it so the package can be delivered but will charge you, the shipper, for the correction.

Carrier address correction charges can be substantial and erode profitability, especially if the shipper is paying for freight delivery rather than the consignee.

Address validation is also essential for customer satisfaction. Incorrect addresses, whether originating from the consignee or other parties, will result in delivery problems and delays.

If these issues can be caught before the shipment is processed, the shipper will maintain customer satisfaction, build repeat orders and, in turn, lead to growing revenues.

CLS Recommendations

With over 25 years of close partnerships with our high-volume shipping clients, we have seen the benefits of collaborating with companies that specialize in address validation software solutions.

These companies offer public and private databases for the US and hundreds of other countries, and they integrate into CRMs and ERPs for fast address corrections that speed up order processing.

Automated Address Validation Software

CLS has also integrated several address validation solutions with InfoShip/Vx, our multi-carrier shipping software solution. We can also help you identify ways to implement address validation software upstream in the fulfillment process, at the e-commerce shopping cart level, and more. Here are a few of our recommendations:

Learn More

Please contact us for a quick chat if you would like to reduce costs and streamline your shipping operations.

Address Validation