Report #AG-2026-192 | February 2026
Carrier Fee Exposure Report
Est.
$570,059/year
Prepared for UNIONBAY — February 2026
Estimates based on publicly available data and industry benchmarks.
53,292
Est. Monthly Orders
$570,059
Annual Fee Exposure
$25.50
Per Correction (FedEx)
Exposure Breakdown
| Line Item | Calculation | Monthly | Annual |
|---|---|---|---|
| Estimated orders/month | $1,493,788 / $28.03 | 53,292 | — |
| Est. orders with address issues (5%) | 53,292 × 5% | 2,665 | — |
| Carrier correction fees (60%) | 2,665 × 60% × $25.50 | $40,774 | $489,294 |
| Reshipment costs (20%) | 2,665 × 20% × $9.50 | $5,064 | $60,762 |
| Support ticket costs (15%) | 2,665 × 15% × $4.17 | $1,667 | $20,003 |
| Total estimated exposure | $47,505 | $570,059 |
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.
That's equivalent to 20,337 free orders you could fulfill instead — or 33 hours of logistics team time per month spent resolving address issues.
FedEx charges $25.50 per address correction. At your volume, that's $40,774/month before reshipments and support.
With Address Guard
| Without Address Guard | With Address Guard | |
|---|---|---|
| Address error rate | ~5% | ~1% (80% reduction) |
| Monthly carrier fees | $47,505 | $9,501 |
| Annual savings | — | $456,048 |
| Cost of Address Guard | — | $25,580/yr ($0.04/order) |
| Net ROI | — | 17.8x |
“Undeliverable addresses and associated labor dropped 40%.”
— Yaniv, Logistics Manager, Inkbox
Read the full Inkbox case study →
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