Stamps.com 2010 Annual Report Download - page 7

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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:
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.
When a customer purchases postage for use through our service, the customer pays the face value of the postage, and the
funds are transferred directly from the customer’s account to the USPS’s account. In addition to postage purchases,
customers pay us 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 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 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
year. Our Enterprise service is 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.
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
•
PC Postage Services.
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.
3