Pricing Terms Beginner

Address Correction

Also known as: Address Correction Fee, Bad Address Fee, Invalid Address Charge

Definition

Address correction occurs when a carrier fixes an incorrect shipping address to successfully deliver a package. While helpful, this service typically comes with a fee charged back to the shipper.

Common Address Errors

Missing information:

  • No apartment/unit number
  • Missing suite or floor
  • No directional (N, S, E, W)
  • Incomplete street name

Incorrect information:

  • Wrong ZIP code
  • Misspelled street
  • Old/outdated address
  • Wrong city

Formatting issues:

  • Number transposition
  • Abbreviated incorrectly
  • Missing street type (St, Ave, Blvd)

Address Correction Fees

Carrier Fee
UPS $18.00-$21.00
FedEx $19.00-$21.00
USPS Usually no fee
DHL Varies

Note: Fees are per package and can add up quickly for multi-package shipments.

How Address Correction Works

  1. Package arrives at facility - Near destination
  2. Address doesn’t match - System flags issue
  3. Carrier researches - Database lookup, local knowledge
  4. Address corrected - Updated in system
  5. Package delivered - To corrected address
  6. Fee charged - Added to shipper’s invoice

When Corrections Aren’t Possible

Package returned if:

  • Address completely wrong
  • Person doesn’t exist at address
  • No valid address found
  • Recipient refuses correction

Results in:

  • Return to sender
  • Return shipping charges
  • Lost sale/delayed delivery
  • Customer frustration

Preventing Address Corrections

Use Address Verification

  • Validate addresses at checkout
  • Use USPS Address API
  • Implement autocomplete
  • Flag suspicious addresses

Standardize Addresses

  • Follow USPS formatting
  • Use proper abbreviations
  • Include unit numbers
  • Verify ZIP+4

Customer Communication

  • Confirm address before shipping
  • Ask for apartment numbers
  • Verify new move addresses
  • Double-check international addresses

Address Verification Tools

Best option for shippers:

  • I’d Ship That - Validates addresses automatically when you compare rates. Catches errors before you pay for a label, saving you $18-$21 correction fees.

Other free options:

  • USPS Address Lookup
  • Google Address Autocomplete

Commercial solutions:

  • SmartyStreets (per-lookup fees)
  • Melissa (subscription)
  • Lob (per-lookup fees)
  • EasyPost (requires integration)

E-commerce platform integrations:

  • Shopify address validation
  • WooCommerce plugins
  • BigCommerce apps

Address Correction vs. Undeliverable

Scenario Outcome Fee
Correctable error Delivered + correction fee $18-$21
Uncorrectable error Returned to sender Return shipping
Recipient moved Forward or return Varies
Refused delivery Returned to sender Return shipping

Business Impact

Costs of bad addresses:

  • Correction fees ($18-$21 each)
  • Return shipping costs
  • Reshipping expenses
  • Customer service time
  • Lost customers

A 5% bad address rate on 1,000 shipments:

  • 50 corrections × $20 = $1,000 in fees
  • Plus returns, reships, and time costs

Best Practices for Shippers

  1. Validate before shipping - Use verification APIs
  2. Require complete addresses - Make fields mandatory
  3. Use standardized formatting - USPS conventions
  4. Confirm with customers - Especially for expensive items
  5. Monitor correction fees - Track and address patterns
  6. Update customer records - After corrections occur
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