Stamps.com 2014 Annual Report Download - page 8

Our mailing and shipping customers currently can also save money in a number of ways including:
The advanced reporting and administrative controls available with our mailing and shipping 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 mailing and shipping 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.
Our mailing and shipping customers can also optimize their shipping operations in a number of ways including: (1) sending USPS packages with
Hidden Postage™, which hides the actual amount paid for postage (a useful feature for e-commerce companies that may not want the recipient
to see actual shipping cost information); (2) reducing customer support costs by automatically generating and sending package delivery status e-
mails to customers; (3) providing a complete record of all packages sent with the ability to retrieve delivery status information; (4) generating a
single bar-coded form that represents multiple packages in a single shipment so that the USPS can scan the single form to accept all of the
packages at once and the customer gets a record that all the packages were accepted by the USPS; (5) adding our integrated package insurance;
and (6) processing large batch shipments via data import or database integrations. The ability to optimize shipping operations is particularly
relevant to our higher volume shipping customers.
Acquisition
On June 10, 2014, we acquired 100% of the outstanding equity of Auctane LLC, which operates ShipStation, in a cash and contingent stock
transaction. ShipStation, based in Austin, Texas, offers monthly subscription based e-commerce shipping software primarily under the brand
ShipStation and Auctane. ShipStation is a leading web-based shipping software solution that allows online retailers and e-commerce merchants
to organize, process, fulfill and ship their orders quickly and easily. ShipStation supports automatic order importing from over 50 shopping carts
and marketplaces, including eBay, Amazon, Shopify, Bigcommerce, Volusion, Squarespace and others. ShipStation offers multi-carrier
shipping options, and automation features like custom hierarchical rules and product profiles that allow customers to easily and automatically
optimize their shipping. Using ShipStation, an online retailer or e-
commerce merchant can ship their orders from wherever they sell and however
they ship. The acquisition of ShipStation represents a significant strategic investment in our high volume and e-commerce shipping business.
Please see Note 3 – “Acquisitions” on our Notes to Consolidated Financial Statements for further description.
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• Our service integrates with most small business productivity applications such as word processors, financial applications and address books
so our customers can save time by utilizing these integrations to print postage through their existing applications; and
• Our customers can use our service to generate large volumes of shipping labels quickly and easily by integrating directly with their existing
databases or e
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commerce systems.
• Our customers receive discounts on single piece First Class letter postage rates compared to USPS post offices and other retail locations.
For example, a one ounce letter would cost customers using our service $0.48 cents instead of the $0.49 cent retail rate;
•
Our customers receive discounts for most domestic packages of up to 54% and discounts for most international packages of up to 13%
compared to USPS retail. In addition, customers who meet certain higher volume requirements can qualify for additional discounts on these
mail classes;
• Our customers receive discounts on USPS Tracking for First Class Package Service of up to $1.05 per package compared to the USPS retail
post office;
• Our service automatically checks and validates destination addresses against the USPS address database so customers do not waste postage
on undeliverable
-
as
-
addressed mail;
• Our service calculates the exact amount of postage that is required for a mail piece depending on mail class, mail form, weight and distance
to the destination which allows our customers to avoid overpaying for postage;
• Customers can use our reports and cost codes to better track, control and reduce postage expenditures; and
• Our customers typically pay a monthly service fee that is up to 72% less than the total cost of an entry or mid-level traditional postage
meter. The total cost of a traditional postage meter can include hardware rental fees, including items such as postage meter and scale,
maintenance and repair costs, insurance fees, fees to purchase postage and the cost to purchase proprietary ink cartridges.