Stamps.com 2010 Annual Report Download - page 8

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TABLE OF CONTENTS
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®.
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 don’t 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 USPS. A transaction fee of $0.07 per label is charged
to customers for each label printed.
In February 2011 we were awarded a contract from the USPS to provide 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.
When we refer to our PC Postage business, we are referring to our PC Postage Service, Mailing & Shipping Supplies Store
and Branded Insurance offering. We do not include our PhotoStamps business when we refer to our PC Postage business.
Customer Value Proposition for our PC Postage Service
We believe that customers use our PC Postage services to save time and money. Some of the ways our customers save time
include: (1) applying postage to letters or packages at home or at the office, avoiding the time that would ordinarily be spent in a
trip to the post office; (2) generating mass mailings quickly and easily by printing the address and postage together in a single
step process; (3) using our software as an integrated package with most small business productivity applications such as word
processors, financial applications and address books; and (4) generating large volumes of shipping labels easily by integrating
directly with the database or file system of eCommerce systems.
Some of the ways in which our customers can save money include: (1) receiving a discount versus USPS retail post offices
of up to 15% off Priority Mail, up to 21% off Express Mail, 5% off Priority Mail International and 8% off Express Mail
International. In addition, “Commercial Plus” customers who meet certain higher volume requirements receive up to 28% off of
Priority Mail and up to 32.5% off Express Mail;
•
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
photograph or image file, customize the look and feel by choosing a border color to complement the photo, select the
value of postage, and place the order online. Each sheet includes 20 individual PhotoStamps, and orders arrive via US
Mail in a few business days.
•
Mailing & Shipping Supplies Store.
Our Mailing & Shipping Supplies Store (our “Supplies Store”) is available to our
customers from within our PC Postage software and sells NetStamps labels, shipping labels, other mailing labels,
dedicated postage printers, scales, and other mailing and shipping-focused office supplies. Our Supplies Store features a
store catalog, messaging regarding our free or discounted shipping promotions, cross-selling product recommendation
during the checkout process, product search capabilities, and same day shipping of orders with expedited and rush
shipping options.
•
Branded Insurance.
We offer Stamps.com branded insurance to our customers so that they may insure their mail or
packages in a fully integrated, online process that eliminates any trips to the post office or the need to complete any
special forms. Our branded insurance is provided in partnership with Parcel Insurance Plan and is underwritten by
Fireman's Fund. We also offer official USPS insurance alongside our branded insurance product.
4