Stamps.com 2015 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2015 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

TABLE OF CONTENTS
ITEM 1. BUSINESS.
Overview
Stamps.com®istheleadingproviderofInternet-basedmailingandshippingsolutions.UndertheStamps.comandEndicia®
brandedsolutions,ourcustomersuseourservicetomailandshipavarietyofmailpieces,includingpostcards,envelopes,flatsand
packages,usingawiderangeofUnitedStatesPostalService(“USPS”)mailclasses,includingFirstClassMail®,PriorityMail®,
PriorityMailExpress®,MediaMail®,ParcelSelect®,andothers.Customersusingourservicereceivediscountedpostagerates
comparedtoUSPSretailoncertainmailpiecessuchasFirstClasslettersanddomesticandinternationalPriorityMailandPriority
MailExpresspackages.Ourcustomersincludeindividuals,smallbusinesses,homeoffices,medium-sizebusinessesandlarge
enterprises,andwithinthesecategorieswetargetbothmailersandshippers.WewerethefirsteverUSPS-licensedvendortooffer
mailingandshippinginasoftware-onlybusinessmodelin1999.Wealsooffermulti-carriershippingsolutionsunderthebrandnames
ShipStation®andShipWorks®.
Services and Products
Mailing and Shipping Business
WeofferthefollowingmailingandshippingproductsandservicestoourcustomersundertheStamps.com,Endicia,ShipStation
andShipWorksbrands:
•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,customersfundanaccountbalancepriorto
usingourservice.Thecustomerthendrawsdowntheirprepaidaccountbalanceastheyprintpostageandrepurchasepostage
asnecessary.OurUSPS-approvedmailingandshippingservicesenablesuserstoprint“electronicstamps”directlyonto
envelopes,plainpaper,orlabelsusingonlyastandardpersonalcomputer,printerandInternetconnection.Ourservices
currentlysupportavarietyofUSPSmailclasses.CustomerscanalsoaddtotheirmailpiecesUSPSSpecialServicessuchas
USPSTracking™,SignatureConfirmation™,RegisteredMail,CertifiedMail,InsuredMail,ReturnReceipt,Collecton
DeliveryandRestrictedDelivery.Ourcustomerscanprintpostage(1)onNetStamps®labelsorDYMOStamps®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servicesare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targetdifferentcustomercategorieswithmultipleserviceplansthatprovidevariousfeaturesandcapabilities.Wetarget
smalleroffices,homeoffices,andsmalleronlinesellersthatneedabasicsetofmailingandshippingfeatureswiththe
Stamps.comPro,EndiciaStandard,EndiciaforMacandEndiciaPremiumplans.Wetargetlargerbusinessesthatneeda
richersetofmailingcapabilitieswithourStamps.comPremierplanwhichaddsmultiple-userfunctionality,automated
CertifiedMailforms,additionalreferencecodesandhigherallowablepostagebalances.Wetargethighervolumeshippers
suchasfulfillmenthouses,retailersande-commercemerchantswiththeStamps.comProfessionalShipper,Endicia
ProfessionalandEndiciaPlatinumShipperplanswhichaddfeaturessuchasdirectintegrationintoacustomer’sorder
databases,fasterlabelprintingspeed,theabilitytocustomizeandsaveshippingprofiles,andintegrationswithover300of
theindustry’sleadingshippingmanagementproducts,shoppingcarts,onlinemarketplacesandothereCommercesolutions.
WetargetlargecorporationswithmultiplegeographiclocationswiththeStamps.comEnterpriseplanwhichfeatures
enhancedreportingthatallowsacentrallocation,suchasacorporateheadquarters,
2