This month GDC welcomed to the consortium a best in-country address validation solution for India, an exciting addition to the Worldview global platform. India is the world’s second largest country in terms of population, its consumer class is growing by leaps and bounds, and rising income is creating an appetite for eCommerce goods. Internet orders are literally doubling every few months. According to Morgan Stanley estimates, Indian online sales will grow from US$3 billion in 2013 to US$100 billion in 2020.
But its address infrastructure is notoriously under-developed, and this creates massive headaches for eCommerce companies that want to ship products to Indian customers. They’re afraid of the risk that comes with the unreliable address services they get from the generic global verification systems (a topic we covered in detail in my Open Letter last month). They want to sell their goods to this massive consumer class in India, but they’re hesitating because of the costs that come when you can’t verify addresses with confidence. Like mis-deliveries, ship-backs, lost shipments, credit card chargebacks, and frustrated customers, to name a few.
That’s why we’re excited to offer this new data partner in India. As a Mumbai-based business, it’s a truly LOCAL solution providing LOCAL intelligence. The company has enriched India Post address data by layering in alternative sources and adding business logic that helps resolve the most common address mistakes. Our own tests of their data demonstrates significant lift over what’s offered in the major generic global systems. And they are constantly refreshing the information to keep ahead of the quick pace of construction as India’s economy keeps building new homes and apartments and demolishing old ones.
In particular, this partner is able to provide more granular delivery details in more cities, suburbs, and villages. While the generic global systems rarely provide verification below the city or post code level, this partner is able to verify many more addresses to the street, premise or even delivery point level.
This is what LOCAL address solutions do, and it makes a big difference to eCommerce businesses (both the big platforms and the individual merchants) seeking growth in the Indian market. Let me explain…
The India Address and Delivery Challenge
Last month Wall Street Journal reporter Sean McLain shadowed two motorcycle deliverymen as they hauled eCommerce goods through the streets of some of India’s largest cities. One worked for Flipkart, an enormous Bangalore-based online marketplace, and the other for Amazon.
Each would pile as much as 150 pounds into their backpacks and fan out through the cities, suburbs and villages to deliver such sundry goods as laser printers, coffee makers and six-packs of Coca-Cola. They’re expected to make at least 45 deliveries each day, but the address infrastructure in India makes this no easy task.
Delhi, for example, is a city of nearly 17 million people. Addresses are a combination of neighborhood names, block numbers and house numbers. Many house numbers aren’t even arranged sequentially along a street. Three houses in a row might skip from 225 to 657 and back to 301. The complexity of it means deliverymen spend a lot of time asking for directions. When following the Amazon driver, the
reporter noted that each delivery “involved at least four stops to ask cycle-rickshaw drivers, security guards or roadside barbers for directions. Each time the response was the same: an outstretched finger and a one-word answer: ‘Straight.'”
Neither Amazon nor Flipkart trust India Post or other traditional delivery services to get their parcels to customers. They’re investing huge sums of cash to build their own delivery infrastructure. This is how desperate they are to build local intelligence to make sure packages arrive on customer’s doorsteps quickly. Even then, it’s all terribly inefficient.
There’s a better way.
The Difference in LOCAL Intelligence for Address Verification
Even though they want to expand their businesses into India, eCommerce merchants are wary of the address and delivery challenge. Generic global address services aren’t helping. In most of India they can only verify addresses to city or district level. Think about what that means. They expect you to ship products – potentially expensive products – to an address about which they can tell you nothing more than “we know the city exists.” It means you have to ship first and then hope the deliverymen figure out the neighborhood, street and house number portions of the address. That creates too much uncertainty for merchants.
With our new data partner in India, GDC is able to flip that equation around. Rather than sending the package and hoping the deliveryman’s local knowledge is sufficient to find the address, we use our partner’s local intelligence to provide address detail to the street, premise and delivery point levels. We can also tell you if an address is not deliverable. It’s like having the local deliveryman in Delhi tell you the address exists before you ever ship the package.
For eCommerce merchants holding back from the Indian market, this should give you reason to reconsider. There’s a massive growth opportunity there, and in using our local intelligence for address verification, you can be confident your parcel will arrive even when you’re using local delivery services.
For the big eCommerce platforms – even those that have invested so heavily in these armies of motorcycle deliverymen – there’s an opportunity for you, too. With this local intelligence for address verification, you can stage your orders for more efficient delivery. If the goal is 45 packages a day per deliveryman, imagine how much throughput you could get if he started with better address information…if he didn’t have to stop four times to ask directions for each package!
So, we welcome our new India partner into the Global Data Consortium. We’re excited to open up access to India for Worldview customers. And if you’re looking for help in India, or any other country in our global platform, give us a call. We’d love to help expand your Worldview.