Report #AG-2026-109 | February 2026
Carrier Fee Exposure Report
Est.
$1,368,972/year
Prepared for ModCloth — February 2026
Estimates based on publicly available data and industry benchmarks.
168,944
Est. Monthly Orders
$1,368,972
Annual Fee Exposure
$18.30
Per Correction (Avg)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $4,047,887 / $23.96 | 168,944 | — |
| Est. orders with address issues (5%) | 168,944 × 5% | 8,447 | — |
| Carrier correction fees (60%) | 8,447 × 60% × $18.30 | $92,748 | $1,112,977 |
| Reshipment costs (20%) | 8,447 × 20% × $9.50 | $16,049 | $192,592 |
| Support ticket costs (15%) | 8,447 × 15% × $4.17 | $5,284 | $63,403 |
| Total estimated exposure | $114,081 | $1,368,972 |
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. Reshipment and support costs use industry averages. Your actual exposure may differ. ModCloth ships internationally, which typically increases error rates by ~20%.
That's equivalent to 57,136 free orders you could fulfill instead — or 106 hours of logistics team time per month spent resolving address issues.
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 | $114,081 | $22,811 |
| Annual savings | — | $1,095,242 |
| Cost of Address Guard | — | $81,093/yr ($0.04/order) |
| Net ROI | — | 13.5x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
Read the full Inkbox case study →
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