Report #AG-2026-010  |  February 2026
Carrier Fee Exposure Report
Est.
$444,385/year

Prepared for Dermalogica — February 2026

Estimates based on publicly available data and industry benchmarks.

70,104 Est. Monthly Orders
$444,385 Annual Fee Exposure
$13.40 Per Correction (UPS)

Exposure Breakdown

Line Item Calculation Monthly Annual
Estimated orders/month $4,485,232 / $63.98 70,104 —
Est. orders with address issues (5%) 70,104 × 5% 3,505 —
Carrier correction fees (60%) 3,505 × 60% × $13.40 $28,180 $338,162
Reshipment costs (20%) 3,505 × 20% × $9.50 $6,660 $79,914
Support ticket costs (15%) 3,505 × 15% × $4.17 $2,192 $26,309
Total estimated exposure $37,032 $444,385
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. Dermalogica ships internationally, which typically increases error rates by ~20%.
That's equivalent to 6,946 free orders you could fulfill instead — or 44 hours of logistics team time per month spent resolving address issues. UPS charges $13.40 per address correction. At your volume, that's $28,180/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 $37,032 $7,406
Annual savings — $355,508
Cost of Address Guard — $33,650/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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