Stamps.com 2015 Annual Report Download - page 9

TABLE OF CONTENTS
• OurservicesautomaticallycheckandvalidatedestinationaddressesagainsttheUSPSaddressdatabasesocustomersdonot
wastepostageonundeliverable-as-addressedmail;
• Ourservicescalculate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atleast50%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.
Theadvancedreportingandadministrativecontrolsavailablewithourmailingandshippingservicesdeliverbenefitsincluding:
(1)greatervisibilityintopostageactivityversus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
versus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-office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thevalueofthepostagehidden(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.
Mailing and Shipping Acquisitions
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brands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.
OnAugust29,2014,weacquired100%oftheoutstandingequityofInterapptive,Inc.,whichoperatesShipWorks,inacash
transaction.ShipWorks,basedinSt.Louis,Missouri,offersmonthlysubscriptionbasede-commerceshippingsoftwarethatprovides
simple,powerfulandeasytousesolutionsforonlinesellers.ShipWorkssolutionsintegratewithover50popularonlinesalesand
marketplacessystemsincludingeBay,PayPal,Amazon,Yahoo!andothers.ShipWorksoffersmulti-carriershippingoptionsand
featuresincludingsendingemailnotificationstobuyers,updatingonlineorderstatus,generatingreportsandmanymore.Pleasesee
Note3–“Acquisitions”onourNotestoConsolidatedFinancialStatementsforfurtherdescription.
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