STAMPS.COM CHARGES INTO B2B MARKET WITH CUSTOMERS, BUSINESS UNITS AND SERVICE OFFERINGS
Stamps.com Completes iShip.com Acquisition; Expands Beyond Small Business To Focus on Corporate and E-Commerce Customers
SANTA MONICA, Calif. – March 14, 2000 – Stamps.com™ (Nasdaq: STMP) today extended its reach into the business-to-business (B2B) e-commerce market by establishing two new Strategic Business Units (SBUs) charged with providing Internet mailing and shipping services to large corporations and e-commerce companies. Leveraging the acquisition of iShip.com™, the new organization combines Stamps.com’s industry domain expertise in Internet Postage™ and Internet-based, multi-carrier shipping services.
“The rapidly emerging B2B e-commerce market requires bold steps to capture its enormous potential created as packages are delivered by common carriers after a purchase from e-tailers, auction sites, aggregators and exchanges,” said John Payne, chairman and CEO at Stamps.com. “This new organization recognizes the importance of enterprise and e-commerce sales efforts within Stamps.com in recent months. With the addition of these two business units, we are aligned to deal with our continued explosive growth in the enterprise and e-commerce market segments.”
Anchored by its strong relationship with the U.S. Postal Service and its recent partnership with the United Parcel Service (NYSE: UPS), Stamps.com is poised to capitalize on the high-potential opportunity driven by activity within the broader B2B e-commerce market, estimated by Gartner Group to rise to $7.4 trillion by 2004. Stamps.com’s expanded offerings create an efficient marketplace where any size business can choose the best carrier, price and delivery terms for every mailing or shipping transaction based on sophisticated, real time rating, tracking and pricing tools.
“UPS handles three times as many packages as its nearest competitor, with more than 12 million deliveries per day in this country,” said Jack Duffy, senior vice president of strategic planning at UPS. “The UPS alliance with Internet-based shipping company, Stamps.com, only strengthens our position in the market by opening yet another channel for UPS customers to ship packages and documents anywhere in the world.”
Stamps.com has organized into three specialized SBUs focused on revenue generation in the enterprise, e-commerce and small business market segments.
The Stamps.com Enterprise SBU offers companies with more than 100 employees an Internet-based, multi-carrier mailing and shipping service. The Stamps.com enterprise service will allow corporations to centrally manage and control costs from mailing and shipping activities across multiple carriers and can be distributed to thousands of corporate desktops using only a Web browser. Employees can quickly prepare packages for shipments, comparing rates and services among carriers that include the U.S. Postal Service, UPS, FedEx, Airborne, and Yellow Freight. Operations management can use centralized administration tools to define shipping procedures, approve carriers and rates, and set business rules to control shipping costs and quality. The service is based on the application service provider (ASP) deployment model and recurring, transaction-based revenue streams.
The largest customer to date of the Stamps.com Enterprise SBU is Mail Boxes Etc. (MBE), the world’s largest retail business, communication and postal services franchiser. With more than 4,100 worldwide locations, MBE processes more than 40 million packages a year. MBE is currently deploying Stamps.com Internet-based, multi-carrier mailing and shipping services to nearly all of MBE’s more than 3,300 domestic locations.
“Our use of this advanced technology greatly enhances our ability to provide world-class customer service,” said James Amos, president and CEO of MBE. “By using Stamps.com mailing and shipping services, we will create greater customer intimacy by extending our services to millions of customers in their homes and offices. At the same time, our brick-and-mortar will become a physical extension of the Internet, offering personalized and convenient services at thousands of locations across the country. It is the ultimate click-and-mortar environment.”
Stephen Teglovic, founding president and CEO of iShip.com, leads the Stamps.com Enterprise SBU as its senior vice president and general manager. Teglovic is responsible for continuing the buildout of the organization, furthering existing relationships with eBay Inc. (Nasdaq: EBAY) and Mail Boxes Etc. (MBE), developing the corporate customer base and overseeing relations with the wide variety of carriers participating in Stamps.com’s shipping marketplace.
Teglovic and the founding team of iShip.com were responsible for building UPS Online® Professional, the world’s most powerful and popular shipping and tracking software now in use by UPS’ top 100,000 customers. In 1997, iShip.com was founded with a $600,000 seed investment from UPS through its venture capital unit. UPS provided subsequent funding to iShip.com as the business grew. As a result of these investments, UPS is now a stockholder of Stamps.com.
“We estimate that corporations lose millions of dollars per year due to an inability to measure, manage and control their mailing and shipping processes,” said Teglovic. “Stamps.com is in a unique position to offer these corporations a way to cut costs like never before using our leading-edge technology, deep understanding of the shipping business and unique relationships with the U.S. Postal Service, UPS, FedEx and other carriers.”
E-Commerce Services SBU
The Stamps.com E-commerce Services SBU addresses the growing shipping needs of e-tailers and other online businesses, including auctioneers. Through current partnerships with eBay, AuctionRover.com and other premier auction Web sites, Stamps.com will provide mailing and shipping services available at the conclusion of any transaction on the Internet. These services will be embedded in auction Web sites, e-tailer “shopping carts” and other points-of-purchase on various Web sites, enabling buyers and sellers to select precise pricing and delivery terms from among a variety of carrier choices.
“Our partnership with Stamps.com adds tremendous value to the auction cycle on AuctionRover.com,” said Scot Wingo, CEO at AuctionRover.com. “With Stamps.com, our auction sellers can complete the transaction with the highest bidder and will be able to estimate the costs of delivery, arrange for the pick-up for the package and track it to delivery. It’s complete customer service.”
The E-Commerce SBU is lead by Senior Vice President and General Manager Kim Parks. Parks joined Stamps after a successful career with the U.S. Postal Service, where she was instrumental in developing recent high-profile partnerships between the U.S. Postal Service and leading e-commerce vendors, including Amazon.com and Eddie Bauer. She headed marketing and strategy for the Expedited Package Services business unit launching the Postal Service’s first e-commerce Web site and marketing and sales campaigns for its $4 billion Priority Mail® service.
Small Business SBU
Stamps.com’s traditional business, serving small businesses and consumers with the easiest Internet Postage service, is now the company’s Small Business SBU. This division will continue to offer the only Internet-based solution for printing U.S. Postal Service-approved postage and expanded offerings of multi-carrier document and package shipping to companies with less than 100 employees. Stamps.com’s Internet Postage service targets small businesses in need of a more efficient and cost-effective way to send letters, documents, parcels and packages. It serves more than 150,000 service-fee-paying small business, small office/home office and consumer users today.
Stamps.com™ is the leading provider of easy, convenient and cost-effective Internet mailing and shipping services to small businesses, large corporations and e-commerce vendors. Anchored by its partnerships with the U.S. Postal Service and United Parcel Service (UPS), Stamps.com creates an efficient marketplace whereby customers can choose the best carrier for any transaction based on cost comparisons and delivery options. With just an Internet connection, Stamps.com customers will have immediate access to select a carrier, print postage or multi-carrier shipping labels, schedule a pick-up and track a package.
Stamps.com has partnerships with major companies such as America Online, eBay, Hewlett-Packard, IBM, Intel, Mail Boxes Etc., Microsoft, Office Depot, Intuit and 3M. Visit sdcmainprod.wpengine.com for more information.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements that involve risks and uncertainties. Important factors, including Stamps.com’s ability to manage its growth and the integration of iShip.com, could cause actual results to differ materially from those in the forward-looking statements and are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its Form 10-Q for the quarter ended September 30, 1999 and its registration statement on Form S-4, as amended, that was declared by the SEC on February 14, 2000. Stamps.com undertakes no obligation to release publicly any revisions to any forward- looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Internet Postage, Stamps.com, the Stamps.com logo, iShip.com, and the iShip.com logo are trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.