Report #AG-2026-047 | February 2026
Carrier Fee Exposure Report
Est.
$656,691/year
Prepared for Bare Necessities — February 2026
Estimates based on publicly available data and industry benchmarks.
61,403
Est. Monthly Orders
$656,691
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $4,249,066 / $69.20 | 61,403 | — |
| Est. orders with address issues (5%) | 61,403 × 5% | 3,070 | — |
| Carrier correction fees (60%) | 3,070 × 60% × $25.50 | $46,971 | $563,652 |
| Reshipment costs (20%) | 3,070 × 20% × $9.50 | $5,833 | $69,996 |
| Support ticket costs (15%) | 3,070 × 15% × $4.17 | $1,920 | $23,043 |
| Total estimated exposure | $54,724 | $656,691 |
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. Bare Necessities ships internationally, which typically increases error rates by ~20%.
That's equivalent to 9,490 free orders you could fulfill instead — or 38 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $46,971/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 | $54,724 | $10,945 |
| Annual savings | — | $525,353 |
| Cost of Address Guard | — | $29,473/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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