Stamps.com 2012 Annual Report Download - page 6

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 to their mail pieces 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. Our customers can print postage
(1) on NetStamps®
labels, which can be used just like regular stamps, (2) 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, (3) on plain 8.5” x 11”
paper or on special labels for
packages, and (4) 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.
We offer multiple PC Postage service plans with different features and capabilities targeted to meet different customer needs. Our Pro Plan
offers a basic set of Stamps.com mailing and shipping features with single-
user capability. Our Premiere plan typically targeted at larger
small businesses adds multiple-
user functionality, automated Certified Mail forms, additional reference codes and higher allowable postage
balances as compared to our Pro Plan feature set. Our Professional Shipper plan is typically targeted at 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. We have launched shipping integrations with several of these e-
commerce focused companies over the past three years. Our
Enterprise plan is typically targeted at 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.
Customers typically pay us a monthly service fee ranging from $15.99 to $39.99 depending on the service plan. In certain circumstances,
customers may be on a plan where they do not owe us any monthly service fees. We have an arrangement with the USPS under which if a
customer or integration partner prints a certain amount of Priority or Express Mail postage, they can qualify to have their service fees
waived or refunded and the USPS compensates us directly. In addition, we also have plans for less than $15.99 which offer more limited
functionality targeted at retaining customers who print a lower volume of postage.
In July 2010 we launched a partnership with Amazon.com that makes our domestic and international shipping labels available to
Amazon.com Marketplace users. The service allows customers to automatically pay for postage using their Marketplace Payments account,
to set a default ship-from address so they do not have to type or write it for each shipment, and to automatically populate the ship-
to address
on the label. Domestic and international mail classes are supported, and Marketplace users may request carrier pickup from the USPS. A
transaction fee of $0.07 per label is charged to non-
subscription customers for each label printed. In October 2012, Amazon.com launched
an internally developed Marketplace USPS shipping solution based on a permit mail system. Amazon's shipping solution is utilized by
merchants for certain mail classes while our shipping solution is utilized for the other mail classes. In addition, we continue to provide the
integrated Amazon.com Marketplace solution to our existing Stamps.com subscription customers.
During the first quarter of 2011, we began providing the electronic postage for shipping transactions generated by Click-N-Ship®, a web-
based service available at USPS.com that allows USPS customers to purchase and print shipping labels for domestic and international
Priority and Express packages at no additional mark-up over the cost of postage.
Table of Contents
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PC Postage Integrations.
As part of our PC Postage services, we offer back-
end integration solutions where we provide the electronic
postage for transactions to partners who manage the front-end process. Our software integrates directly into the most popular e-
commerce
platforms, allowing web store managers to completely automate their order fulfillment process by processing, managing, and shipping
orders from virtually any e-
commerce source through a single interface without manual data entry. Managers can retrieve order data and
print complete shipping labels for all USPS mail classes, including First Class International
®
.
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