Report #AG-2026-199 | February 2026
Carrier Fee Exposure Report
Est.
$1,450,167/year
Prepared for Magnolia Bakery — February 2026
Estimates based on publicly available data and industry benchmarks.
178,954
Est. Monthly Orders
$1,450,167
Annual Fee Exposure
$18.30
Per Correction (Avg)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $7,653,848 / $42.77 | 178,954 | — |
| Est. orders with address issues (5%) | 178,954 × 5% | 8,948 | — |
| Carrier correction fees (60%) | 8,948 × 60% × $18.30 | $98,249 | $1,178,988 |
| Reshipment costs (20%) | 8,948 × 20% × $9.50 | $17,001 | $204,014 |
| Support ticket costs (15%) | 8,948 × 15% × $4.17 | $5,597 | $67,164 |
| Total estimated exposure | $120,847 | $1,450,167 |
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. Reshipment and support costs use industry averages. Your actual exposure may differ.
That's equivalent to 33,906 free orders you could fulfill instead — or 112 hours of logistics team time per month spent resolving address issues.
With Address Guard
| Without Address Guard | With Address Guard | |
|---|---|---|
| Address error rate | ~5% | ~1% (80% reduction) |
| Monthly carrier fees | $120,847 | $24,175 |
| Annual savings | — | $1,160,068 |
| Cost of Address Guard | — | $85,898/yr ($0.04/order) |
| Net ROI | — | 13.5x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
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