Report #AG-2026-171 | February 2026
Carrier Fee Exposure Report
Est.
$1,056,910/year
Prepared for Kao Family of Brands USA — February 2026
Estimates based on publicly available data and industry benchmarks.
98,817
Est. Monthly Orders
$1,056,910
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $2,122,588 / $21.48 | 98,817 | — |
| Est. orders with address issues (5%) | 98,817 × 5% | 4,941 | — |
| Carrier correction fees (60%) | 4,941 × 60% × $25.50 | $75,597 | $907,168 |
| Reshipment costs (20%) | 4,941 × 20% × $9.50 | $9,388 | $112,655 |
| Support ticket costs (15%) | 4,941 × 15% × $4.17 | $3,091 | $37,087 |
| Total estimated exposure | $88,076 | $1,056,910 |
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.
That's equivalent to 49,204 free orders you could fulfill instead — or 62 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $75,597/month before reshipments and support.
With Address Guard
| Without Address Guard | With Address Guard | |
|---|---|---|
| Address error rate | ~5% | ~1% (80% reduction) |
| Monthly carrier fees | $88,076 | $17,612 |
| Annual savings | — | $845,570 |
| Cost of Address Guard | — | $47,432/yr ($0.04/order) |
| Net ROI | — | 17.8x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
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