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.


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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
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