In recent years, all sectors of human life have shifted towards digitization. Although online document verification can benefit all industries equally, online retail can benefit the most. The retail sector saw the most significant impact of this paradigm shift, partly due to the Covid pandemic. Whether it was grocery, telemedicine, clothing, or any other e-commerce service, they all saw tremendous growth. In 2021 alone, these online sales amounted to a whopping $5.2 trillion. Even more interesting is that these sales are predicted to grow at 56%, reaching $8.1 trillion by 2026. Moreover, Amazon is expected to reach $1.2 trillion by 2027, which will make it the most prominent e-commerce retailer. If there is anything that counts the most in online sales, it is customer experience.
Customers want to avoid the hassle of physical shopping in online marketplaces. Given such many users, it becomes challenging to authenticate all users efficiently. This is where online document verification can help marketplaces stay ahead of the demand and enhance user experience.
A Quicker Onboarding Process
A lot of the resources of an online marketplace are consumed only in the customer onboarding process. This is because the large volume of transactions makes this industry a lucrative target for cybercriminals. During the 2021-22 period, the e-commerce losses due to fraud reached $41 billion. Therefore, marketplaces must conform to regulatory compliances to deter these threats. However, online document verification can make onboarding faster by cutting down processing times for accurate document attestation. Also, the onboarding process represents the customer’s first exposure to the company. If the experience is shallow or if it is streamlined, it can leave a positive impression on the customer.
Decrease in Transactional Costs
Businesses have generally relied on traditional manual processes for verification documents. In terms of marketplaces, transactions above a certain threshold mandate the verification of customer identity documents. However, manual processes can take a long time, not to mention that they are also prone to human error. On the other hand, online document verification mainly eliminates the need for human validation. Moreover, the customers do not have to be physically present on the premises for verification purposes. Only a scan or photo of the document will be enough for the online document verification system to function.
Enhanced Security – Less Fraud Risk
Even though giant retailers have strict Know Your Customer (KYC) policies, they are not immune to fraud. In the short term, only the customer feels the damage of such illicit activities. For example, identity fraud has risen as the demand for e-commerce services has increased. Such criminals steal the customer’s credentials and carry out financial transactions in their name. However, these cases can impact the company’s reputation in the long run. Online document verification can help companies enhance the security of their verification process and decrease fraud risk.
Faster Customer Service
One of the significant advantages of the document verification process online is that it frees up crucial human resources of the system. Therefore, instead of spending countless hours on monotonous document attestation, the resources can be allocated to enhance customer service. The unique selling point of online retailers lies in their faster customer service and streamlined processes. However, if their customer service could be improved, it would depict a negative image to the customers. Online document verification can help differentiate between genuine claims and forged ones, thus, enhancing the overall system.
Improved Trust – Better Compliance
All of the benefits mentioned above boil down to better compliance with regulations. If an online marketplace or a retailer enacts online document verification, they will not have to worry about constant human errors. Moreover, a document verification online system ensures that only authorized personnel can access customer data. This further improves customer data security and privacy.
Online document verification systems can seamlessly integrate with the existing framework of e-commerce websites. In most cases, customers can access them with only a tap without going through an extensive process. Moreover, if the client wishes, such systems also come with third-party verification services. Thereby increasing the functionality of the process.
The Impact of Online Document Verification in Online Marketplaces
Online document verification positively impacts all aspects of online marketplaces, from faster customer onboarding processes to enhanced security. Moreover, it also helps refine the bottom line of the company. Decreased transaction rates, reduced fraud risk, and better customer retention rates boost sales. With the expected growth in online businesses, online document verification will be crucial to its success. Overall, online document verification can revolutionize any online marketplace and enhance user experience.