Stamps.com 2014 Annual Report Download - page 7

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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.
In addition, ShipStation and ShipWorks offer integrations with shopping carts and online marketplaces as part of their multi-
carrier shipping
solutions.
PhotoStamps
PhotoStamps is a patented form of postage that allows consumers to turn digital photos, designs or images into valid USPS-approved postage.
With this product, individuals or businesses can create customized USPS approved 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 U.S. Mail in a few business days.
When we refer to our mailing and shipping business, we are referring to our Mailing and Shipping Service and Integrations, Mailing & Shipping
Supplies Store, Branded Insurance offering and Multi Carrier Shipping Services. We do not include our PhotoStamps business when we refer to
our mailing and shipping business.
Customer Value Proposition for our Mailing and Shipping Business
Our mailing and shipping customers currently can save time in a number of ways including:
3
Table of Contents
•
Mailing & Shipping Supplies Store.
Our Mailing & Shipping Supplies Store (our “Supplies Store”) is available to our customers from
within our mailing and shipping 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 recommendations during the checkout process, product search capabilities, and same-
day shipping of orders with expedited 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. In addition, ShipStation and ShipWorks also
offer branded package insurance as part of their offerings.
• Our service allows customers to mail or ship 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;
• Our service allows customers to generate mass mailings quickly and easily by printing the address and postage together in a single step
process;