Stamps.com 2012 Annual Report Download - page 7

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PhotoStamps
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.
Customer Value Proposition for our PC Postage Business
Our PC Postage customers can save time in a number of ways including: (1) mailing or shipping from their home or office 24 hours a day and 7
days a week, 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 e-commerce systems.
Our PC Postage customers can also save money in a number of ways including: (1) receiving a discount versus USPS retail post offices of up to
20% off Priority Mail, up to 63% off Express Mail, up to 9% off Priority Mail International, up to 10% off Express Mail International, up to 18%
off First Class Package Service, and up to 10% off First Class Package International Service. In addition, “Commercial Plus”
customers who
meet certain higher volume requirements receive additional discounts which can result in total discounts up to 35% off of Priority Mail, up to
63% off Express Mail, up to 14% off Priority Mail International and up to 16% off Express Mail International; (2) receiving a discount versus
USPS retail post office of up to $0.70 per package on Delivery Confirmation service; (3) automatically checking destination addresses against
the USPS address database, so postage is not wasted on undeliverable-as-
addressed mail; (4) avoiding wasted postage by calculating the exact
amount of postage that is needed depending on mail class, mail form, weight and distance to the destination; (5) tracking and controlling postage
expenditures using reports and cost codes built into our service; and (6) paying a monthly service fee that is up to 60% less than the total cost of
an entry-
level postage meter, where users typically pay monthly rental fees, maintenance fees, postage purchase surcharges, cleaning fees, and
fees for proprietary ink cartridges.
The advanced reporting and administrative controls available with our PC Postage service delivers benefits including: (1) greater visibility into
postage activity vs. traditional solutions; and (2) improved tracking and control of postage, which can help customers manage and reduce
postage expenditures. The advanced reporting and controls capability is particularly relevant to our enterprise customers who are managing
postage across multiple locations.
Our PC Postage customers can enhance their productivity and image by: (1) producing more professional looking mail vs. stamped mail, thereby
helping a smaller business resemble a larger business; and (2) transforming a two-step process into a one-
step process by printing addresses and
postage together. The enhanced productivity and image gained through our software is particularly relevant to our home and small business
customers.
Table of Contents
•
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.
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