Online commerce is huge nowadays – to the tune of over $400 billion dollars a year in the United States alone in 2017, at a growth rate up to three times that of retail in general. Barriers to entry are lower than ever, ecommerce platforms have become simpler to use and less expensive than ever, and the convenience of e-commerce has grown to encompass businesses of every size. Above all, purchasing goods online has become ubiquitous among today’s consumers.
Whether you are looking to launch a simple shopping cart using platforms like WordPress’ WooCommerce, Shopify or Magento, or an enterprise solution like Microsoft’s Commerce Server or IBM’s WebSphere Commerce, it can still be a minefield for the uninitiated. Here are some of the risks that every online seller takes every day:
Filling orders from fraudulent sources costs you both revenue and time – and according to Javelin Research, identity fraud alone totals over $18 billion per year in the US. And the bad guys particularly love to target novice sellers.
Every online order starts a chain of activities – from billing to shipment – that depend on the quality of your contact data. Credit card processing often requires accurate address data, and one misdirected shipment can wipe out the profit margin of many other sales – not to mention the reputational damage it can do.
According to the Harvard Business Review, the cost of acquiring a new customer ranges from 5 to 25 times the cost of selling to an existing customer. This means that your contact database is the key to follow-on sales, brand awareness and long-term profitability. Which also means that bad contact data – and the rate at which this contact data decays– cuts straight to your bottom line.
Did you know that tax rates can vary from one side of a street to the other? Or that some states have passed or are considering an “internet tax” out-of-state sellers? Tax compliance, and avoiding the penalties that come with incorrect sales tax rates, is a fact of life for any online business.
The common denominator between each of these issues? Data quality. And thankfully, these problems can all be mitigated inexpensively nowadays, with tools that fit right in with your current contact management strategy. Some of the solutions available today from Service Objects include:
- A suite of tools for fraud prevention, including address, email and telephone verification, lead validation that scores prospects on a scale of 0-100, credit card validation, and IP address validation – so you know when an order for a customer in Utah is placed from Uzbekistan.
- Shipping address validation tools that verify addresses against up-to-date real-time data from the USPS and Canada Post, to make sure your products go to the right place every time.
- Email verification capabilities that perform over 50 tests, including auto-correcting common domain errors and yielding an overall quality score – improving your marketing effectiveness AND preventing your mail servers from being blacklisted.
- Real-time tax rate assessment that validates your addresses, and then provides accurate sales and use tax rates at any jurisdictional level.
Each of these capabilities are available in several convenient formats, ranging from APIs for your applications to batch processing of contact lists. Whichever form you choose, automated data tools can quickly make the most common problems of online commerce a thing of the past.