Report #AG-2026-017 | February 2026
Carrier Fee Exposure Report
Est.
$1,103,327/year
Prepared for Bearbottom Clothing — February 2026
Estimates based on publicly available data and industry benchmarks.
103,154
Est. Monthly Orders
$1,103,327
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $5,365,054 / $52.01 | 103,154 | — |
| Est. orders with address issues (5%) | 103,154 × 5% | 5,158 | — |
| Carrier correction fees (60%) | 5,158 × 60% × $25.50 | $78,917 | $947,009 |
| Reshipment costs (20%) | 5,158 × 20% × $9.50 | $9,800 | $117,602 |
| Support ticket costs (15%) | 5,158 × 15% × $4.17 | $3,226 | $38,716 |
| Total estimated exposure | $91,944 | $1,103,327 |
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. Bearbottom Clothing ships internationally, which typically increases error rates by ~20%.
That's equivalent to 21,214 free orders you could fulfill instead — or 64 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $78,917/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 | $91,944 | $18,396 |
| Annual savings | — | $882,576 |
| Cost of Address Guard | — | $49,514/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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