Report #AG-2026-052 | February 2026
Carrier Fee Exposure Report
Est.
$515,765/year
Prepared for Rhone — February 2026
Estimates based on publicly available data and industry benchmarks.
81,365
Est. Monthly Orders
$515,765
Annual Fee Exposure
$13.40
Per Correction (UPS)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $3,661,421 / $55.00 | 81,365 | — |
| Est. orders with address issues (5%) | 81,365 × 5% | 4,068 | — |
| Carrier correction fees (60%) | 4,068 × 60% × $13.40 | $32,707 | $392,481 |
| Reshipment costs (20%) | 4,068 × 20% × $9.50 | $7,729 | $92,750 |
| Support ticket costs (15%) | 4,068 × 15% × $4.17 | $2,545 | $30,534 |
| Total estimated exposure | $42,980 | $515,765 |
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.
That's equivalent to 9,378 free orders you could fulfill instead — or 51 hours of logistics team time per month spent resolving address issues.
UPS charges $13.40 per address correction. At your volume, that's $32,707/month before reshipments and support.
With Address Guard
| Without Address Guard | With Address Guard | |
|---|---|---|
| Address error rate | ~5% | ~1% (80% reduction) |
| Monthly carrier fees | $42,980 | $8,600 |
| Annual savings | — | $412,562 |
| Cost of Address Guard | — | $39,055/yr ($0.04/order) |
| Net ROI | — | 10.6x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
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