Stamps.com 2014 Annual Report Download - page 6

We offer the following mailing and shipping products and services to our customers under the Stamps.com brand:
Our USPS-approved mailing and shipping 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 mailing and shipping 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 mailing and shipping 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 mailing and shipping 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 Premier 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.
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Table of Contents
• USPS Mailing and Shipping Services. After completing the registration process, customers can purchase and print postage 24 hours a day,
seven days a week, through our software or web interface. Typically, 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. The
customer then draws down their prepaid account balance as they print postage and repurchase postage as necessary. Customers typically
pay a monthly subscription fee for access to our service.
•
Multi Carrier Shipping Services
.
We offer multi carrier shipping solutions through our ShipStation and ShipWorks brands as a result of our
acquisitions. The ShipStation and ShipWorks platforms offer leading solutions for medium and high volume shippers such as warehouses,
fulfillment houses, e-
commerce shippers, large retailers, and other types of high volume shippers that may need more than just the USPS for
their business.
•
Mailing and Shipping Integrations.
As part of our mailing and shipping 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
®
.