States and provinces are important for data validation and allow you to offer specific countries a specific selection of states/provinces. For example, a customer in the United States will only want to see the states for that country, or perhaps a Canadian customer will only want to see their provinces.
Learn how to enable your country and states/provinces so you can only sell to certain regions and sections with your WordPress shopping cart.
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State & province setup is important to make sure you have accurate data collection from users. Be sure to enter the correct abbreviated name for the state/province. For example, United States ISO 2 digit codes are all capitals and this is how many payment gateways and shipping API systems will want the data.