Report #AG-2026-095  |  February 2026
Carrier Fee Exposure Report
Est.
$211,693/year

Prepared for Luxy® Hair — February 2026

Estimates based on publicly available data and industry benchmarks.

15,240 Est. Monthly Orders
$211,693 Annual Fee Exposure
$25.50 Per Correction (FedEx)

Exposure Breakdown

Line Item Calculation Monthly Annual
Estimated orders/month $3,670,560 / $240.85 15,240 —
Est. orders with address issues (5%) 15,240 × 5% 762 —
Carrier correction fees (60%) 762 × 60% × $25.50 $11,659 $139,903
Reshipment costs (20%) 762 × 20% × $36.13 $5,506 $66,070
Support ticket costs (15%) 762 × 15% × $4.17 $477 $5,720
Total estimated exposure $17,641 $211,693
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. Luxy® Hair ships internationally, which typically increases error rates by ~20%.
That's equivalent to 879 free orders you could fulfill instead — or 10 hours of logistics team time per month spent resolving address issues. FedEx charges $25.50 per address correction. At your volume, that's $11,659/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 $17,641 $3,519
Annual savings — $169,465
Cost of Address Guard — $7,315/yr ($0.04/order)
Net ROI — 23.2x
“Undeliverable addresses and associated labor dropped 40%.” — Yaniv, Logistics Manager, Inkbox Read the full Inkbox case study →

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