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Perhaps you've seen the new TV commercial in which a group of young entrepreneurs stare at their new Web page, watching the purchase recorder increase with a quickening pace. Joyous grins give way to worried frowns when the realization finally hits--all those orders need to be shipped!
The increases in your own business may not suffer the same alarming growing pains, but e-commerce often provokes a continual search for time-saving techniques and programs that enable you to spend more time online making money. One nifty time-saver you may want to explore soon is e-postage.
Gary A. Thurlow, known as The Bookman on eBay, says that his local post office is "staffed with extremely nice people who work with antiquated equipment." The staff is friendly and efficient, but the time he spends at the counter is sometimes 30 minutes or more. "That's rough on the 20 or so people who end up behind me."
Shanti Forte, who also sells on eBay, complains that the Internet business-person isn't quite as welcome at her post office. Logjams at the counter often result in abuse by postal workers. "I was actually in tears over it yesterday," she laments. Whether you find yourself in Gary or Shanti's shoes, e-postage may be a reasonable and necessary step. When you're ready to take it, there are several options to consider.
Pitney-Bowes (www.pitneyworks.com) has been doing business for the past 75 years and jumped on the Internet market fast, offering lease arrangements for desktop posting machines and extending credit lines to Internet sellers who showed a track record of success. Its lease arrangement is simple. You pay $19.95/month for the desktop machine ($24.95 if you include their electronic scale). And, as with any process you use, your expendable supplies include ink cartridges and labels. Competing online postage companies tout Pitney-Bowes' lease arrangement as passe, a situation the company hopes to remedy by inaugurating Clickstamp, a method of providing postage via the home computer and printer in the samemanner as Stamps.com. Clickstamp is still in the works, and Pitney-Bowes is currently taking pre-registration for this process through its Web site.
Stamps.com is probably the easiest of the processes to use. It requires no extraneous equipment other than a PC and printer. According to Paula Berge of The Solace Lambs Network, "I use Stamps.com for all postage and I love it and have never had a problem." Its software is downloaded free, and to make its product more appealing, it currently offer $20 worth of postage free.
eStamp.com competes with a similar incentive. Customers begin with a $49.99 starter kit and a label printer (cost $209.95). Its home page offers $50 worth of free postage if you sign up now. Its ad on eBay's home page gives a different eStamp offer--you pay 1/2 the cost of the start up kit and receive $25 worth of free postage (only a 1 cent difference). Gary Thurlow reports he was really excited about eStamp when it debuted. "Unfortunately it didn't work as well as I'd hoped, several times charging my account and not printing postage. God forbid you have a printer jam. I lost lots of money that way."
Another dependable venue to explore is UPS. Depending on the size of your operation, UPS claims to have a program for you. Low-end users benefit fromthe Internet Shipping service that provides free downloaded software.Accounts with daily pick up service can opt for Worldship, a process that requires a label maker that is leased for $2 a week. There are plusses and minuses with UPS that differ from the USPS. UPS allows you to track packages, obtain delivery confirmation, insurance, and mail international packages from home. The downside is that UPS does not deliver on weekends, and the cost for packages traveling long distances can be higher than the USPS (it does not have a bookrate saving). Home pick-up is an additional charge, but its reliability rate exceeds more traditional methods ofsending.
Despite the attempts to appear different from the others, each company providing e-postage requires a scale, uses ink to produce the actual postal mark, and uses paper/label supplies. Also, the downloading of postage into an "electronic vault" costs 10% of the actual dollar amount ordered. This cost is somewhat inflexible, but you can shop around to cut corners elsewhere. Scales offered online, with package deals, begin at $49.99 and reach $99.99. A quick trip to Staples will give you a 4-lb. weight alternative for $18.
But the cost of equipment and supplies shouldn't be daunting. Talk to your accountant to find out what are deductible and legitimate operating costs.The added expense spread out over time can be passed along to customers without hurting sales if your volume is high enough. Remember, when it comes to Internet sales, one old adage proves true: time is money. If the time younow spend waiting in line at the post office can be better used to make theamount of money to cover the start up costs and supply bills, then the decision to use e-postage will prove worthwhile.
ePostage Options - Summary
All options require a scale and utilize ink, paper and label supplies that you must supply.
Pitney-Bowes (www.pitneyworks.com), tel. 1-800-5PITNEY
Lease desktop machine for $19.95/month (other plans available) Future plans to introduce Clickstamp, providing postage via PC & printer
Stamps.com (www.stamps.com)
Download free software to your computer and print postage using your printer.
Download charge: free Transfer fee: 10% of the amount you put into an "electronic vault" Offer: $20 free postage
eStamp.com (www.estamp.com)
$49.99 starter kit
Download charge: free
Transfer fee: 10% of the amount you put into an "electronic vault"
Offer: $50 free postage on its home page; ad on eBay's site offers starter kit for 50% and $25 free postage
UPS (www.ups.com)
Download free software. Daily-pickup accounts can opt for Worldship and lease a label maker for $2/week
http://www.ups.com/bussol/solutions/internetship.html
Extra charges: weekly fee for pickup service
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Editor's Note: The January 2000 issue of "Home Office Computing" magazine reviewed four electronic postage systems and gave Stamps.com a "best buy" rating.
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