Report #AG-2026-027 | February 2026
Carrier Fee Exposure Report
Est.
$568,382/year
Prepared for Summersalt — February 2026
Estimates based on publicly available data and industry benchmarks.
89,658
Est. Monthly Orders
$568,382
Annual Fee Exposure
$13.40
Per Correction (UPS)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $4,034,628 / $55.00 | 89,658 | — |
| Est. orders with address issues (5%) | 89,658 × 5% | 4,483 | — |
| Carrier correction fees (60%) | 4,483 × 60% × $13.40 | $36,043 | $432,520 |
| Reshipment costs (20%) | 4,483 × 20% × $9.50 | $8,518 | $102,212 |
| Support ticket costs (15%) | 4,483 × 15% × $4.17 | $2,804 | $33,649 |
| Total estimated exposure | $47,365 | $568,382 |
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. Summersalt ships internationally, which typically increases error rates by ~20%.
That's equivalent to 10,334 free orders you could fulfill instead — or 56 hours of logistics team time per month spent resolving address issues.
UPS charges $13.40 per address correction. At your volume, that's $36,043/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 | $47,365 | $9,477 |
| Annual savings | — | $454,655 |
| Cost of Address Guard | — | $43,036/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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