Report #AG-2026-058 | February 2026
Carrier Fee Exposure Report
Est.
$2,342,912/year
Prepared for Arctic Fox — February 2026
Estimates based on publicly available data and industry benchmarks.
219,063
Est. Monthly Orders
$2,342,912
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $4,449,179 / $20.31 | 219,063 | — |
| Est. orders with address issues (5%) | 219,063 × 5% | 10,953 | — |
| Carrier correction fees (60%) | 10,953 × 60% × $25.50 | $167,581 | $2,010,971 |
| Reshipment costs (20%) | 10,953 × 20% × $9.50 | $20,811 | $249,728 |
| Support ticket costs (15%) | 10,953 × 15% × $4.17 | $6,851 | $82,213 |
| Total estimated exposure | $195,243 | $2,342,912 |
Order volume estimated from publicly available e-commerce revenue data. 5% address error rate is the industry benchmark (1 in 20 orders). Carrier correction fees are published rates — FedEx charges $25.50 per address correction. Reshipment and support costs use industry averages. Your actual exposure may differ. Arctic Fox ships internationally, which typically increases error rates by ~20%.
That's equivalent to 115,358 free orders you could fulfill instead — or 137 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $167,581/month before reshipments and support.
International addresses have 20% higher error rates than domestic.
With Address Guard
| Without Address Guard | With Address Guard | |
|---|---|---|
| Address error rate | ~5% | ~1% (80% reduction) |
| Monthly carrier fees | $195,243 | $39,056 |
| Annual savings | — | $1,874,244 |
| Cost of Address Guard | — | $105,150/yr ($0.04/order) |
| Net ROI | — | 17.8x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
Read the full Inkbox case study →
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