Online identity verification is becoming more and more critical in the world of eCommerce. It allows businesses to reduce fraud, improve customer experience and increase sales. With online identity verification, you can be assured that every user who goes through your checkout process is who they say they are. That means they are not some imposter trying to steal confidential information or commit fraud on your business. Let’s look at how this technology can benefit eCommerce businesses.
Efficiency In Online Business
You may have heard of online identity verification and wondered what it is, how it works, and why you should use it. Online identity verification is a new way to verify your identity when making purchases on the internet or interacting with businesses online.
The latest data indicates that about 4.9 billion internet users worldwide were reported for 2021. With such a large number of internet users, making the online purchasing process as quick and straightforward as possible for eCommerce has become necessary. It is especially true given that most consumers prefer shopping online over more conventional methods like visiting brick-and-mortar stores.
Also, in this day and age, efficiency is a necessary requirement. Businesses that do not have efficient processes in place will be at a disadvantage over competitors who do. In addition, customers expect fast and accurate service from companies that can be provided by working digitally. Online identity management helps with efficiency in the following ways:
- It provides convenience for both the buyer and seller, who can access their information anywhere at any time.
- The process is quick as it does not require manual intervention except when required.
- Information sharing between parties also takes place quickly, improving accuracy.
Reduction In Shipping Errors
You can better avoid shipping errors and lost orders with more accurate information about your customers. It is a win-win situation for both you and your customer. First, you can offer more flexible shipping options, reducing costs while increasing revenue. Your customers will have greater confidence in their purchases, which translates into more sales.
In addition to preventing shipping mistakes or missing products, giving a wider variety of delivery alternatives may save expenses. Online identity verification also helps consumers get their packages faster by ensuring they’ve entered the correct information on their order forms. So it can be processed quickly during the fulfillment process.
Sales Boost
One of the most significant benefits of online identity verification is its ability to create a more seamless experience for consumers. That could translate into greater trust in eCommerce stores. It can also mean increased sales, both online and offline. Shoppers are much less likely to abandon their carts when they reach the last step of the checkout process by reducing shipping errors, chargeback fraud, and identity theft.
Additionally, by ensuring that everyone who buys from an eCommerce store is indeed who they claim to be during each transaction, retailers can improve their customer service. They can prevent orders from being canceled due to incorrect billing information. It increases customer satisfaction levels while simultaneously reducing costs associated with those cancellations.
Remote Staff Hiring And Outsourcing
The benefits of this include:
- Reduced risk of hiring the wrong person:
- Increased speed in hiring: Processing applicants quickly so your business can grow at an efficient pace.
- Reduced cost in hiring: Using an automated system eliminates the need for expensive background checks and verification processes. It allows you to spend more on building a business than vetting candidates.
Identity Management
Online identity verification is the process of verifying a person’s digital identity. A digital identity is the digital representation of people, organizations, and other entities. Digital identities are used for authentication, authorization, and identification purposes. They are also used for many purposes, such as reputation measurement and risk assessment in e-commerce transactions.
Identity Management (IdM) manages the creation, use, provisioning, revocation, and archiving of digital identities within or across organizations. It allows organizations to manage these processes more efficiently than possible.
AML Compliance
AML, or Anti-money laundering, is a set of laws and regulations. It requires financial institutions and other regulated entities to perform due diligence. These are performed on customers, monitor suspicious activity, and report suspicious transactions to the appropriate authorities. It helps them prevent financial crimes such as money laundering and terrorist financing.
AML compliance is one of the key benefits of using a trusted identity verification provider to identify your customers. The other benefit is straightforward. If you don’t know who your customer is and don’t have any form of identification. Then there’s no way you can verify their identity or perform any due diligence on them.
That might sound obvious, but it’s not just about knowing what name someone goes by these days. It also knows where they’re from or what languages they speak, even whether someone has an arrest warrant out for them somewhere else. Because not knowing these things could mean breaking AML laws yourself if/when something happens with your business dealings with such a suspicious individual.
Reduced Chargeback Fraud
A recent report shows that the typical US merchant experiences 1,740 attempts at fraud each month. With more than 50% of efforts succeeding, 2021 will have more successful tries than unsuccessful ones. Thus, chargeback fraud is a big problem in the retail industry. It’s one of the main reasons why eCommerce businesses have to pay more attention to their payment processing strategies. Chargebacks can be used to steal money from eCommerce stores, banks, credit card companies, and consumers.
Online identity management also helps prevent chargeback fraud by ensuring that consumers are who they say they are. When a customer purchases online, the merchant or e-tailer will confirm their information and verify that it matches what was provided at checkout. It helps protect against false claims of fraud or theft after a transaction has been completed, which can lead to costly chargebacks for retailers.
By verifying customers’ identities before making purchases, merchants can avoid having their accounts frozen because of suspected fraud.
Better Management Overall
The online identity verification process is becoming more complex and time-consuming for consumers. However, making fraudulent purchases is more challenging, which is good for both retailers and consumers. It also means that users have more control over their information, making them feel safer using these services.
In addition to saving customers time, online identity verification systems can create better security protocols for eCommerce stores. As a result, they provide merchants with more accurate information about their customers or potential ones.
Online Identity Is Shaping The eCommerce Industry
In this article, we’ve looked at how online identity verification is shaping the eCommerce industry. With so many benefits on offer, it’s no wonder that more and more online sellers are turning to this service. In addition, it’s great to see how much progress has been made in recent years and how high the demand for online verification services has become.