10 Ways Online Retailers Can Utilize IP Geolocation



Posted by db-ip on 2019 Sep 25

Over the past several years, using IP geolocation has become increasingly popular among many retailers. Despite this growth, the benefits of being able to detect city by IP may not be apparent to many online retailers. Alongside this, many companies aim to seek how they can effectively utilize the technology.

While there are a few benefits to doing so that can be obvious, there are many that are quite surprising.

Despite this, many online retailers may be curious as to how being able to detect city by IP can be utilized for their business. There are quite a few important ways it could when done effectively.

Offer & Product Localization

Many online retailers will want to cater to a specific country’s residents, especially if a significant amount of their customer base is from there. However, this could pose a problem if the retailer doesn’t know where their customers are coming from.

This is something that’s avoiding using IP geolocation, although the advantages don’t stop there. In contrast, this also allows retailers to provide specific offers and deals to people from a particular region only.

As an example, travel retailers will be able to offer deals for a potential buyer’s closest airport. This usage can also be seen with fashion retailers, who’ll be able to market winter clothing to people in one area while advertising summer clothing to people in warmer climates.

Experience Optimization

When properly implemented, IP geolocation can allow online retailers to collect data based on the shopper’s internet connection. There are a few things that this will look at, aside from the obvious of their location. The most notable of these is how they’re browsing and whether they’re using a mobile gateway, such as 3G.

By doing so, firms will be able to optimize the performance of their e-commerce platform much better than they otherwise would have. This is primarily done through redirecting mobile users to a mobile-optimized site while providing users with a slow connection to a lower resolution of the website.

These benefits should mean that an online retailer’s users will have much better navigation, which should have a domino effect on sales.

Optimize A Customer’s Checkout

During a checkout, an online retailer is going to need a customer’s location, as well as a variety of other pieces of information. Though this is an unavoidable part of buying something online, it’s still something that takes quite a significant amount of time.

Much of this can frustrate users, especially if there’s a large amount of information needed. One way to avoid much of this is through IP geolocation, which will populate forms with the data that it has collected.

While the majority of this will focus on the customer’s country and city, some providers can offer somewhat more than this. Though this could mean that there’s only a short reduction in time and effort needed to fill out these forms, it’s something that the majority of users should appreciate.

As a result, an online retailer should be able to cut down on overall checkout times while improving ease of use.

Prevent Fraud

Online fraud has become an increasingly more significant problem over the past few years, with there being a variety of methods created to try to minimize it. Though the majority of online retailers will have a variety of security measures for this, the implementation of IP geolocation can be one way to help this.

Given that the technology prepopulates as many of the address areas as possible, it can help reduce people using others information. This security feature may only be beneficial in the background of the website, as it could provide a warning sign that fraud may be occurring.

This is especially true when compared to any credit card information that may have been input. As a result, the IP geolocation software can compare each address to ensure that everything matches.

Enforcing Content Rights

Various laws govern media and digital content rights, with the majority of these covering the distribution of certain media. While this may not present any issues for an online retailer in one country, it could pose an issue in others.

The primary reason behind this is that various laws that are in effect in different countries, some of which may be at odds with each other. This could mean that, while a certain advertisement may be legal to distribute in one country, for example, it may not be in another.

This is something that could cause legal repercussions, which is why it’s best left avoided. IP geolocation ensures that this shouldn’t occur, as people in certain areas will only be shown ads and marketing materials for their country.

Distribution Rights

In many cases, an online retailer that sells various brands may only have distribution rights for the product in certain areas. As a result, they may not want to risk the business arrangement by selling or advertising their products where they’re not supposed to.

However, this presents an obvious problem as to how to avoid this. The easiest, and often most effective, is through IP geolocation. By capitalizing on its implementation, an online retailer’s customers will only see the products they can buy and have shipped to them.

As a result of this, online retailers will be able to enforce distribution rights and vigorously adhere to any agreements.

Traffic Management Optimization

Since IP geolocation is a non-invasive option that doesn’t require the use of cookies, then it can be a useful option for traffic management. Alongside this, it could also provide a variety of network security features that many online retailers may want to capitalize on.

This is primarily because it offers real-time location information, as well as verified proxy data, so it will be able to help differentiate between fraud and legitimate website activity. The service could also offer device security, especially for firms that use a significant number of smart devices.

Manage Logistics

IP geolocation can help a firm better manage its logistics and network divisions, which can be seen in a variety of ways. The most notable of these is that it helps eliminate the number of wrong addresses that are input into the checkout form.

Alongside this is that the technology could also provide real-time tracking, which is something that many retailers may want to offer to their customers. However, the primary benefit with this is that it allows an online retailer to ensure that a package reaches its destination quickly and with no problems.

The practice could also mean that a retailer can use information gleaned from this tracking to refine and improve the delivery process.

Multi-Channel

According to a variety of statistics, the majority of buyers research purchases and brands through a mobile device before buying. As a result, the internet has much more of an influence on a retail company’s success than entrepreneurs may realize. This can be seen both online and offline.

This means that retailers will need to make themselves stand out from the competition, especially with search engine rankings. While SEO can have a substantial role in this, utilizing IP geolocation can have a variety of additional benefits.

Alongside this, companies can use an online store-finder to help website users find their closest premises. This multi-channel approach could have quite a large impact on sales, although this is only felt by retailers who have both an online and offline presence.

Enhance Marketing

Similar to how IP geolocation can be used to customize products and offers to certain countries, it can also have many more tangible long-term benefits for the company. The majority of these will be seen in the firm’s marketing efforts, which can become much more refined.

For example, sales and marketing professionals should be able to tailor the information gleaned from geolocation to creating long-term strategies that cater to specific regions. This could also result in an online retailer being able to target underperforming areas to try to boost sales.

This should also provide marketing professionals with an insight into whether their strategies are being well-received in certain areas. By doing so, they’ll be able to adapt their advertising campaigns accordingly.

There are quite a significant number of ways that being able to detect a city by IP can benefit an online retailer. While the majority of these are consumer-centric, they should still have a variety of positive impacts on the company itself.

Any online retailer looking to detect the city by IP such be able to utilize this information in a variety of ways. Capitalizing on one of the above doesn’t mean that a firm will have to rule out the others.

In contrast, each of the above uses complements each other effectively, making the benefits of the practice much more tangible. However, this will take a certain amount of time and effort to implement, not to mention a certain financial cost.

Despite this, the majority of online retailers should see these investments pay off dividends in the following months and years. As such, it’s a practice that’s quite recommended.

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