Stamps.com Acquires E-commerce Software Company
Package delivery is the future for the U.S. Postal Service, its representatives say. The same is true for a close partner of the USPS, Stamps.com. As a result, the online postage provider to more than 500,000 customers announced on Monday that it bought e-commerce software provider ShipWorks for $22 million.
"The acquisition of ShipWorks represents another strategic investment in our high volume and e-commerce shipping business," says Stamps.com Chairman and CEO Ken McBride in the press release. "E-commerce-driven package shipping is a very attractive segment within the mailing and shipping space, and this acquisition further leverages our ability to accelerate our growth in this area."
As First Class mail volume declines (see the chart in the media player, at right) USPS says package delivery revenues grew 10 percent this year. At the same time, USPS is moving into the e-commerce-driven grocery delivery space, closing mail processing centers and will not raise postage rates in January.
Stamps.com's announcement shows the company is also working to court e-commerce marketers. Stamps.com says the acquisition will be convenient for e-commerce marketers who ship packages because the ShipWorks software is designed to "organize, process, fulfill and ship their orders quickly and easily. ShipWorks is integrated with over 50 selling platforms, including eBay, PayPal, Amazon, Yahoo and others."
Stamps.com says ShipWorks will operate as an independent, wholly owned subsidiary, continuing to offer shippers Web-based order status updates and, if the shippers allow it, email notifications for their customers.
"Depending on your online store, ShipWorks will send back one or more of the tracking numbers, shipping methods, costs, and payment status of each order," according to the software company's site.
What's more, Stamps.com states, ShipWorks will continue to offer "multi-carrier shipping options." On its site, ShipWorks lists USPS, FedEx, FedEx Canada, UPS, UPS Canada, DHL Global Mail, i-parcel and OnTrac among the options.