Table of Contents
If you are a frequent eCommerce shopper, you will be familiar with the terms ‘billing address’ and ‘shipping address’. While you may not have given much thought to it, these are important details for ensuring that you package reaches the right person and place. Read on to understand the main difference between billing address vs shipping address, what each of these mean to logistics companies, and how as a customer you can avoid shipment delays and billing errors by tagging the right addresses.
On that note, let us take a look at what is billing address and shipping address.
What is a billing address?
Let us first look at the meaning of a billing address.
Billing address is the buyer’s address linked to the bank or payment platform. It verifies the identity of the person making the online purchase and is authorised to use the card/net banking platform.
For instance, if you are buying a pair of shoes for yourself, your bank-linked address is the billing address, irrespective of where you are getting the shoes delivered. Alternatively, if you are buying the pair of shoes for a friend/family member and sending as a gift, your billing address remain the same – the address where you get your bank statements and banking updates.
What is a shipping address?
Shipping address on the other hand is the address where the buyer wants the parcel to delivered. It is required so that the parcel can be delivered at the right location and the transportation cost or delivery fee can be calculated accordingly. It also enables transporters to check if the location pincode is serviceable or not.
In our previous example, if you are buying the pair of shoes for yourself and want it to be delivered to your residential address, your shipping address will be the ‘Home’ address you have saved on the eCommerce platform. However, if it’s a working day and you want the shoes to be delivered at your workplace, your shipping address will be ‘Office’, i.e., your office address saved on the platform. In both of these instances, your billing address remains the same – the address that is linked to your bank account/credit card.
Whether you are buying goods on eCommerce platforms, availing courier services or any other, the main difference between billing address and shipping address remains the same.
Billing address vs shipping address: Key differences
Now that we understand the meaning of shipping and billing address, let us look at the main differences between the two.
Difference between shipping address vs billing address:
| Field | Shipping address | Billing address |
| Meaning | The address the parcel is to be delivered | The address linked to your (the buyer’s) credit card or bank |
| Type | Can be numerous, e.g., Home – meaning home address; Office/Work – meaning office address; Others – Can be the address of a family member or friend you are buying for etc. | Is usually only one – the address you have linked to your card/bank or where you receive your banking statements |
| Importance | Ensures that the parcel reaches the right location, minimising delivery failures, returns or complaints
Used to calculate shipping cost from point of origin to delivery location |
Verifies you (the buyer) are authorised to use the payment method |
| Verification stage | Before placing the order as serviceability has to be checked | At checkout |
| Returns/Refunds | In case of returns, this is usually also the address the parcel is picked up from | In case of refund, amount is credited to the original payment mode (i.e., card/net banking) and you (buyer) can cross-check and verify it |
| Impact on business | Incorrect shipping details can lead to non-delivery and return of goods, delays, rescheduling of pickups – all of which adds to logistics costs | Incorrect billing details can raise suspicion especially when order value is high (order/payment processing can be withheld temporarily if eCommerce site suspects fraudulent activity when billing address does not match with the bank details) |
| Impact on customer | Incorrect shipping address can lead to delays and returns, which at times may also cause damage to goods and may incur additional delivery fees | Order/payment may be withheld if system identifies any suspicious activity |
Shipping vs billing address: Common errors and implications
There are some common errors that can happen when filling in your billing and shipping address details. Some of them are minor errors and wouldn’t stop the ordering process. There are however errors that can delay the delivery process, cause a poor customer experience, or worse, not be able to proceed with the order process. Let’s have a look at them.
Shipping address errors:
- You have entered a wrong pincode, e.g., 400095 instead of 400099 – while this is an error, this will ideally result in delay. In such cases most logistics providers call the recipient to check the delivery details and update records as required. In certain cases this may incur additional fees or the recipient may be asked to pick up the parcel from the logistics franchise The pincode error will be more complicated if instead of 400095 you had typed 700095 – in which case these are deliveries in two different cities. This would incur additional delivery fees and other updates.
- You have misspelt a part of the address, e.g., instead of ‘Highway’ apartment, you have written it as ‘Highbay’ apartment – this too is a minor error though in many cities, popular apartment buildings are well known by all logistics partners. However, this too might only delay the delivery process as the partner will have to call and confirm the delivery address detail.
Most courier providers/logistics transporters provide Order ID and Tracking ID numbers. These enable customers to track their order and delivery status. For instance, if you have sent a parcel to a customer from Delhi to Mumbai, you can use the Tracking Number to check the shipment/delivery status online. In case there is a shipping address error, it can be rectified by connecting with the logistics provider at the earliest.
Billing address errors:
- You have entered a part of the address, e.g., only house number, city, pincode – this works. Though this is not an exact match with your full address ass per bank records, this is not an error. Most address forms have the mandatory fields marked as * to ensure that the essential details are not missed. Moreover, to avoid frauds, there are other security measures and fields that are matched to verify buyer identity.
In most cases, it is recommended to save your billing and shipping address in the eCommerce platform or as ‘Notes’ on your laptop/phone, to avoid typing it all the time. However, if you are a small business and working with a 3PL service provider and need to add new customer addresses every time, make sure you re-check the addresses to avoid delays and related shipping challenges.
FAQs on Shipping address vs Billing address
Can billing address and shipping address be the same?
What if I want to ship to a different address?
How can I find out my billing address?
Is shipping address and delivery address the same?
Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.
