Postage Biz Licked E-Stamp; Company Moves To Logistics - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Postage Biz Licked E-Stamp; Company Moves To Logistics

E-Stamp Corp. is closing the door on Internet postage, turning instead to Web-based B-to-B shipping and logistics services. E-Stamp will cut its staff of 120 by 30%.

The company plans to use assets it got in May when it bought Automated Logistics and Infinity Logistics. The Internet postage pioneer will sell or license its Digital Shipper software, which lets customers compare shipping options offered by FedEx, United Parcel Service, and other shippers. Digital Shipper also will connect customers with package-tracking services offered by the major shippers. E-Stamp says it has 200 customers using Digital Shipper, including Intel, Oracle, and Sony.

"While Internet postage is a good idea, it takes awhile for it to become a sustainable business," E-Stamp CEO Robert Ewald says. In E-Stamp's third quarter, ended Sept. 30, shipping and logistics accounted for 40% of the company's $1.8 million in revenue. The rest was postage revenue.

E-Stamp is entering an arena with a lot of solid competition from parcel carriers and shippers, says John Fontanella, an analyst with AMR Research. "They will have to work hard to differentiate themselves from what else is out there." Small businesses may be receptive to E-Stamp's inventory-management products, Fontanella adds, because few small companies have automated their stock rooms "beyond the information they may have in a spreadsheet."

Customers will be able to buy postage from E-Stamp until Dec. 31. Neopost Online Inc., a unit of French postal-equipment maker Neopost Inc., has agreed to buy E-Stamp's postage customers for about $250 per customer.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll