Dec 19, 2023
5
mins read

SMS Verification for Ecommerce

Product Manager at Message Central
SMS verification for Ecommerce

Key Takeaways

  1. In a hypercompetitive industry like Ecommerce, every click and second counts and ease in navigation is very significant
  2. A seamless onboarding experience is one of the very popular use case of SMS verification for Ecommerce industries
  3. There are various other use cases as well like avoiding re registration, preventing frauds and funnel drop offs
  4. SMS verification inherently becomes more crucial for Ecommerce industry than others due to high focus on user experience
  5. Verify Now solves SMS verification use case for Ecommerce with high success rate and global connectivity

In the world of ECommerce, where every click and every second count, establishing trust and ease in online transactions is paramount.  
This is where SMS verification emerges as a crucial player. Not just an add-on, SMS verification services have become a cornerstone in building a secure, user-friendly, and inclusive digital shopping environment. Especially for ECommerce, compared to other industries, its significance is even more pronounced due to the unique nature of online shopping behaviours and expectations.

For promotional use cases in Ecommerce, WhatsApp marketing has become the go to tool, but for use cases like verification and authentication, OTP SMS service providers win the war.  

1) Seamless Onboarding Experience

The first step in any digital interaction is onboarding – the process where new users get started with an online service. In ECommerce, the importance of a seamless onboarding experience cannot be overstated. It sets the tone for the customer's entire journey. SMS verification aids in this process by simplifying and securing the user authentication.

When a customer signs up, they receive an SMS with a verification code. This step accomplishes two critical goals: -
a. Firstly, it verifies the authenticity of the phone number provided, ensuring that the user is genuine.

b. Secondly, it streamlines the process.  

Users don't need to remember another password; their phone number becomes an integral part of their login credentials. This ease of use is particularly beneficial for ECommerce platforms, where mastering onboarding process can significantly reduce the abandonment rate.

2) Avoiding Re-registration

One of the common pain points in online shopping is the need for re-registration or account recovery. Users often forget their login details, leading to a cumbersome recovery process that can deter them from completing a purchase. SMS verification offers a solution by enabling easy and secure account recovery.

When users opt to log in or recover their account, they can receive an SMS with a temporary code to regain access to their account. This method is not only secure but also user-friendly, eliminating the need for remembering multiple passwords or going through extensive account recovery procedures. For ECommerce, where every barrier to entry can lead to lost sales, this is particularly impactful.

3) Preventing Frauds

ECommerce platforms are often targets of various fraudulent activities, including account takeovers, phishing, and identity theft. SMS verification acts as a powerful deterrent against such activities.

Each transaction or significant account change can be validated through an SMS code sent to the user's registered phone number. This additional layer of security means that even if login credentials are compromised, the fraudster would still need access to the user's mobile device. This two-factor authentication is critical in an industry where financial transactions are a core function.

Even for securing OTP SMS, one should always follow certain guidelines for OTP SMS fraud prevention.

4) Reducing User Funnel Drop-offs

A common challenge in ECommerce is the drop-off rate, especially at crucial stages like the final payment. Users might abandon their carts due to various reasons, including security concerns or complicated checkout processes. SMS verification can help mitigate this.

By incorporating SMS verification in the payment process, ECommerce businesses can offer an additional layer of security that reassures customers. This verification can be a simple, quick step where users receive a code via SMS to confirm their transaction. It's a balancing act between security and convenience, and SMS strikes this balance effectively, reducing drop-offs and increasing transaction completions.

5) Catering to a Wider Audience with SMS's Reach

The reach of SMS is unparalleled. Unlike internet-based services, SMS does not require a high-speed internet connection. This broad reach is crucial for ECommerce platforms aiming to cater to a diverse set of customers, including those in regions with limited internet access.

In emerging markets, where mobile penetration is high but internet connectivity is still growing, SMS verification allows ECommerce platforms to include a wider customer base. It ensures that even customers with basic mobile phones can participate in the digital economy, making ECommerce truly inclusive.

One should always select the best OTP service providers with global connectivity to ensure maximum reach.

 

6) SMS Verification in ECommerce vs. Other Industries

While SMS verification is widely used across various sectors, its application in ECommerce is particularly significant. Unlike industries where transactions occur less frequently or where the relationship is long-term (like banking or healthcare), ECommerce interactions are often quick and transactional. Customers expect a swift, hassle-free experience. SMS verification aligns perfectly with these expectations, offering a quick, secure, and straightforward authentication method.

Moreover, the nature of ECommerce – with frequent, diverse, and global transactions – calls for a verification method that is universally accessible and scalable. SMS, with its near-universal reach and simplicity, fits this need perfectly.

Ecommerce also uses SMS marketing heavily using SMS APIs with SMS API providers.

Conclusion

In conclusion, SMS verification in ECommerce is not just about adding a security layer; it's about enhancing the entire customer journey – from onboarding to checkout. It addresses key challenges like user authentication, fraud prevention, and transaction drop-offs, while also reaching a wider audience.

As ECommerce continues to evolve, the integration of technologies like SMS verification will play a pivotal role in shaping its future – a future that is secure, user-friendly, and inclusive. For ECommerce platforms looking to thrive in the digital era, embracing SMS verification is not just an option; it's a necessity.

SMS Verification with Verify Now

Verify Now is an SMS verification service by Message Central. You can get started sending OTP SMS without any DLT registration. With best routes and direct operator connectivity, Verify Now provides easy to integrate SMS verification APIs.