Report #AG-2026-004  |  February 2026
Carrier Fee Exposure Report
Est.
$2,154,461/year

Prepared for Pink Lily — February 2026

Estimates based on publicly available data and industry benchmarks.

201,433 Est. Monthly Orders
$2,154,461 Annual Fee Exposure
$25.50 Per Correction (FedEx)

Exposure Breakdown

Line Item Calculation Monthly Annual
Estimated orders/month $6,463,983 / $32.09 201,433 —
Est. orders with address issues (5%) 201,433 × 5% 10,072 —
Carrier correction fees (60%) 10,072 × 60% × $25.50 $154,102 $1,849,219
Reshipment costs (20%) 10,072 × 20% × $9.50 $19,137 $229,642
Support ticket costs (15%) 10,072 × 15% × $4.17 $6,300 $75,600
Total estimated exposure $179,538 $2,154,461
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. Pink Lily ships internationally, which typically increases error rates by ~20%.
That's equivalent to 67,138 free orders you could fulfill instead — or 126 hours of logistics team time per month spent resolving address issues. FedEx charges $25.50 per address correction. At your volume, that's $154,102/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 $179,538 $35,901
Annual savings — $1,723,655
Cost of Address Guard — $96,688/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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