Stamps.com 2009 Annual Report Download - page 6

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TABLE OF CONTENTS
Item 1. Business.
Overview
Stamps.com® is the leading provider of Internet-based postage solutions. Our customers use our service to mail and ship a
variety of mail pieces, including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (the
“USPS”) mail classes, including First Class Mail®, Priority Mail®, Express Mail®, Media Mail®, Parcel Post®, and others. Our
customers include individuals, small businesses, home offices, medium-size businesses and large enterprises, and within these
segments we target both mailers and shippers. We were the first ever USPS-licensed vendor to offer PC Postage® in a software-
only business model in 1999.
Services and Products
We offer the following products and services to our customers
In addition to postage purchases, customers pay Stamps.com a monthly service fee ranging from $15.99 to $39.99
depending on the features and capabilities of the particular service. Our Pro Plan offers a basic set of Stamps.com mailing
& shipping features with a single-user capability. Our Premiere plan for larger small businesses adds multiple-user
functionality, automated Certified Mail forms, FedEx label printing, additional reference codes and higher allowable
postage balances to our Pro Plan feature set. Our Professional Shipper plan is targeted to higher volume shippers such as
fulfillment houses, retailers and e-commerce merchants and features direct integration into a customer’s order databases,
faster label printing speed, the ability to customize and save shipping profiles, and integrations with many of the
industry’s leading shipping management systems. Our Enterprise service is targeted to organizations with multiple
geographic locations and features enhanced reporting that allows a central location such as a corporate headquarters
greater visibility and control over postage expenditures across their network of locations.
Our customers can print postage (i) on NetStamps® labels, which can be used just like regular stamps, (ii) directly on
envelopes, postcards or on other types of mail or labels, in a single-step process that saves time and provides a
professional look, (iii) on plain 8.5” x 11” paper or on special labels for packages, and (iv) on integrated customs forms
for international mail and packages. For added convenience, our PC Postage services incorporate address verification
technology that verifies each destination address for mail sent using our service against a database of all known addresses
in the United States. Our PC Postage service is also integrated with common small business and productivity software
applications such as word processing, contact and address management, and accounting and financial applications. We
also offer several different versions of NetStamps, such as Themed NetStamps and Photo NetStamps that allow
customers to add stock or full custom designs to their mail while still providing the same NetStamps convenience of
printing and using postage whenever it is needed.
•
PC Postage Service
. Our USPS-approved PC Postage service enables users to print “electronic stamps” directly onto
envelopes, plain paper, or labels using only a standard personal computer, printer and Internet connection. Our service
currently supports a variety of USPS and international mail classes. Customers can also add USPS Special Services such
as Delivery Confirmation
TM
, Signature Confirmation
TM
, Registered Mail, Certified Mail, Insured Mail, Return
Receipt, Collect on Delivery and Restricted Delivery to their mail pieces. After installing our software and completing
the registration process, customers can purchase and print postage 24 hours a day, seven days a week. When a customer
purchases postage for use through our service, the customer pays face value, and the funds are transferred directly from
the customer’s account to the USPS’s account.
•
PhotoStamps
® . In May 2009 we successfully completed the market test of our PhotoStamps product. PhotoStamps is
a patented form of postage that allows consumers to turn digital photos, designs or images into valid US postage. With
this product, individuals or businesses can create customized US postage using pictures of their children, pets, vacations,
celebrations, business logos and more. PhotoStamps can be used as regular postage to send letters, postcards or packages.
The product is available via our separately-marketed website at www.photostamps.com . Customers upload a digital
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