Report #AG-2026-032 | February 2026
Carrier Fee Exposure Report
Est.
$209,324/year
Prepared for Art of Tea — February 2026
Estimates based on publicly available data and industry benchmarks.
33,014
Est. Monthly Orders
$209,324
Annual Fee Exposure
$13.40
Per Correction (UPS)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $1,442,694 / $43.70 | 33,014 | — |
| Est. orders with address issues (5%) | 33,014 × 5% | 1,651 | — |
| Carrier correction fees (60%) | 1,651 × 60% × $13.40 | $13,274 | $159,288 |
| Reshipment costs (20%) | 1,651 × 20% × $9.50 | $3,137 | $37,643 |
| Support ticket costs (15%) | 1,651 × 15% × $4.17 | $1,033 | $12,392 |
| Total estimated exposure | $17,444 | $209,324 |
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 — UPS charges $13.40 per address correction. Reshipment and support costs use industry averages. Your actual exposure may differ. Art of Tea ships internationally, which typically increases error rates by ~20%.
That's equivalent to 4,790 free orders you could fulfill instead — or 21 hours of logistics team time per month spent resolving address issues.
UPS charges $13.40 per address correction. At your volume, that's $13,274/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 | $17,444 | $3,487 |
| Annual savings | — | $167,484 |
| Cost of Address Guard | — | $15,847/yr ($0.04/order) |
| Net ROI | — | 10.6x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
Read the full Inkbox case study →
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