Stamps.com 2013 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 mail classes. Customers can
also add to their mail pieces USPS Special Services such as USPS Tracking
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 labels, such as Themed NetStamps labels and Photo
NetStamps labels, which allow customers to add stock or custom designs to their postage label.
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. 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 domestic or international Priority Mail or Priority Mail Express postage, the USPS
compensates us directly and the customer can qualify to have their service fees waived or refunded. In addition, we also have plans with
service fees less than $15.99 which offer more limited functionality and are targeted at retaining customers who print a lower volume of
postage.
We have an integration 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
per shipping label printed is charged to merchants who are not Stamps.com subscription customers. In October 2012, Amazon.com
launched their own internally developed Marketplace USPS shipping solution system that resulted in a reduction in postage printed through
our solution. Amazon's shipping solution is utilized by merchants for certain mail classes while our shipping solution is utilized by
merchants for the other mail classes. In addition, we continue to provide the integrated Amazon.com Marketplace solution to Stamps.com
subscription customers.
We have an integration partnership with the USPS where we provide 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 Mail and Priority Mail Express packages at no additional mark-up over the cost of postage.
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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
®
.