Report #AG-2026-002  |  February 2026
Carrier Fee Exposure Report
Est.
$1,082,499/year

Prepared for Dixxon Flannel Co. — February 2026

Estimates based on publicly available data and industry benchmarks.

170,750 Est. Monthly Orders
$1,082,499 Annual Fee Exposure
$13.40 Per Correction (UPS)

Exposure Breakdown

Line Item Calculation Monthly Annual
Estimated orders/month $7,654,711 / $44.83 170,750 —
Est. orders with address issues (5%) 170,750 × 5% 8,538 —
Carrier correction fees (60%) 8,538 × 60% × $13.40 $68,646 $823,746
Reshipment costs (20%) 8,538 × 20% × $9.50 $16,222 $194,666
Support ticket costs (15%) 8,538 × 15% × $4.17 $5,341 $64,086
Total estimated exposure $90,208 $1,082,499
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. Dixxon Flannel Co. ships internationally, which typically increases error rates by ~20%.
That's equivalent to 24,147 free orders you could fulfill instead — or 107 hours of logistics team time per month spent resolving address issues. UPS charges $13.40 per address correction. At your volume, that's $68,646/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 $90,208 $18,035
Annual savings — $866,075
Cost of Address Guard — $81,960/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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