The calculation is using assumptions like that the return costs are 5 $ per order.
This varies from carrier to carrier.
Studies show, that the rate of wrong addresses per month is about 5% but can be reduced by Address Validation iO by 80%.
Monthly and avoidable costs without address validation
Monthly and avoidable costs without address validation
| without address validation | 250 orders | 1500 orders | 3000 orders |
|---|---|---|---|
| 5% wrong addresses / month | 13 | 75 | 150 |
| return costs / order | 5 $ | 5 $ | 5 $ |
| losses / month | 62.50 $ | 375.00 $ | 750.00 $ |
Address Validation iO reduces the rate of wrong addresses per month by 80 %
Address Validation iO reduces the rate of wrong addresses per month by 80 %
| Starter-Plan | Business-Plan | Pro-Plan | |
|---|---|---|---|
| orders / month | 250 | 1500 | 3000 |
| wrong addresses / month (reduced by 80%) | 3 | 15 | 30 |
| return costs / order | 5 $ | 5 $ | 5 $ |
| costs for Address Validation iO / order | 0.039 $ | 0.033 $ | 0.033 $ |
| costs for Address Validation iO / month | 9.90 $ | 49.90$ | 99.90 $ |
| costs / month | 15.12 $ | 75.09 $ | 150.09 $ |
| savings / month | 47.38 $ | 299.91 $ | 599.91 $ |
