What is the difference between shipping and billing address

What is the difference between a billing and shipping address?

When making a purchase online or over the phone, you will be asked for a number of addresses in order to process the order.

Billing and shipping addresses are all common requirements of online purchases. More often than not, these addresses are the same but its important to understand the differences between them and why they are required.

Billing address

Billing address is the address linked to your bank account and the one you registered with your bank when you set up your payment method with your bank.

A billing address is usually your listed home address and should be updated if you move house. A billing address must be provided for an online purchase, otherwise the order will not be processes.

When the payment is processed, the billing address is checked against the payment card details so if it is not right, the payment will be rejected and the order will fail.

Shipping address

The shipping address is where you would like your items to be delivered.

In most cases, the online retailer will automatically link your billing address to the shipping address but prompt you to change the shipping address if you wish the items to be shipped to an alternative location. This may also come into play if you are making the purchase as a gift for someone and would like it delivered to their address.

Protecting your details

It’s more important than ever these days to protect our personal information as much as we can. When moving home, ensure you update your address details with your bank.

If you fail to do so, important and sensitive information will be sent to your old home, opening the door to the risk of fraud. You will also fail to receive new bank cards which will impact your ability to make payments.

Key Points

• Shipping address is also your delivery location or when you want your packages delivered to
• The billing address is the address linked to your bank card
• Both shipping and billing addresses need to be correctly entered to avoid delivery and bank issues

One of the best ways to get ahead of shipping delays is ensuring the details you enter during purchase is correct. In a survey, 62% of consumers experienced either failed or late delivery. And a significant reason for this delay is incorrect addresses.

When your customers make a purchase online, they are directed to enter a shipping address at checkout and a billing address when selecting the payment option. There are times that a duplicate entry may work, but there is only one explanation for that: their shipping address and billing address are the same! While there is a possibility for this, there are times that the transaction will not go through because the shipping address is not the same as the billing address.

A perfect understanding of the differences between billing address vs. shipping address can help you and your customers avoid simple errors This article explains the differences and how you can enter them correctly in your subsequent purchases.

What's a Shipping Address?

Shipping address and billing address can be the same literally. Both, however, do not have the same meaning.

Though people tend to mix up the meanings of shipping and billing addresses, they are pretty different. In simple terms, the shipping address is where the customer wants his parcel delivered. When you order a product from an online store and want to have it shipped, you must enter a delivery location to help the seller and courier get the goods across to you. That, in clear terms, is your shipping location. Now, shipping doesn't necessarily have to be your home address. You can intend to ship the item to a different place from your usual delivery location. In that case, the shipping address would be the recipient's address. The following are essential things you should know about the shipping address:

• They are used to confirm that your purchase has been received in a particular location
• They are used to calculate your accurate shipping fee

Without a correct shipping address, there will be implications. First, the owner will not receive their package, and the package will be subsequently returned to the warehouse or the distribution center. The shipping address should be correctly entered and verified to avoid failed attempted delivery.

What's a Billing Address?

Remember when we said that shipping address and billing address could mean the same? Well, here is what we mean. After entering your shipping address, which is where you want your package delivered, you will be required to enter a location connected to your bank or online payments. This address is referred to as your billing address.

Sometimes, you may want to receive your package at your home, which is likely your billing address. However, if you are shipping the package elsewhere, say to your friend, your billing location becomes different from your shipping address. This understanding will save you from making errors.

• Your billing address is connected to the location you receive statements from your bank
• It is also related to where you receive information from the bank regarding your credit or debit cards

You must enter your billing address to authenticate your purchase and reduce the possibility of fraudulent activities.

Related Post: Related Post:Shipping Glossary

What's the Difference between a Shipping Address and Billing Address?

While it is agreed that a billing address can sometimes be the exact location as the shipping address, there are key areas of difference that we like to point out so that you can make informed choices in the future. In the table below, we have highlighted and explained the main differences to help you understand both terms better.

Address Validation Software with Easyship

Accurate details are essential for hassle-free delivery. Entering the wrong billing or shipping address can lead to delays and cost you some money. However, if you have the correct billing and shipping address information, you will have a seamless checkout and delivery process.

Easyship helps you to make the process easy. With an address validation software, you can effortlessly correct typos in your address, add postal codes, and format your address appropriately suitable for the processor. What's more, use Easyship to get the best shipping with major couriers and start shipping. Easyship features and tools are also available on the website to help you get the shipping experience. Click below to get access to some of them.

Free Shipping Rates Calculator: Access high-volume discounts from major couriers. Plus, get instant access to delivery lead times from premium shipping couriers

Global Fulfillment: Easyship has warehouse partners on four continents to reach customers worldwide. Plus, Easyship helps scale up fulfillment capabilities without increasing overhead costs

Shipping Policy Generator: Our shipping policy generator helps merchants and crowdfunding campaigns generate their shipping policy by providing tracking and insurance options, plus other vital information for your shipping processReady to ship? Sign up for a FREE Easyship account and get instant access to high-volume discounts up to 91% off for hundreds of shipping companies