Report #AG-2026-084 | February 2026
Carrier Fee Exposure Report
Est.
$498,829/year
Prepared for The Feed — February 2026
Estimates based on publicly available data and industry benchmarks.
46,646
Est. Monthly Orders
$498,829
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $2,317,368 / $49.68 | 46,646 | — |
| Est. orders with address issues (5%) | 46,646 × 5% | 2,332 | — |
| Carrier correction fees (60%) | 2,332 × 60% × $25.50 | $35,680 | $428,155 |
| Reshipment costs (20%) | 2,332 × 20% × $9.50 | $4,431 | $53,170 |
| Support ticket costs (15%) | 2,332 × 15% × $4.17 | $1,459 | $17,504 |
| Total estimated exposure | $41,569 | $498,829 |
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. The Feed ships internationally, which typically increases error rates by ~20%.
That's equivalent to 10,041 free orders you could fulfill instead — or 29 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $35,680/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 | $41,569 | $8,307 |
| Annual savings | — | $399,149 |
| Cost of Address Guard | — | $22,390/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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