Stamping Out Stamps-1999-02-09-New services let you print postage from your PC-Matt Lake

If you've ever spent your lunch hour waiting to get your postage meter refilled, you've probably thought, "There's got to be a better way."

Developers of new indicia-based postage, or e-postage, systems claim that a better way has arrived: virtual postage meters. Using Windows software and printers, Web-based e-postage systems let you print a special kind of bar code in place of a stamp. You buy postage on the Web and fill up your meter (namely, a special online "vault" reserved for you) right from your PC.

It's all part of a U.S. Postal Service program called IBIP--the Information-Based Indicia Program (www.usps.gov/ibip). Their goal is to make buying postage more convenient, especially for small businesses that send out moderate amounts of mail on a regular basis. It works like this: USPS-certified companies offer customers postage in exchange for a small fee or service charge. The early players in the IBIP include E-Stamp (www.e-stamp.com), Stamps.com (www.stamps.com), Neopost (www.neopost.com), and Pitney Bowes (www.pitneybowes.com)--and while no one is yet saying exactly what they'll charge for their service, they are leaning away from a fixed monthly fee toward a "convenience fee," based on a percentage (no greater than 10 percent) of the postage you buy.

Taking It for a Test

I spent a couple of weeks test-driving the beta of Stamps.com's e-postage system. If it's any indication of what's to come, small businesses with moderate mailing needs will flock to Internet postage. Like all IBIP companies, Stamps.com is going through a rigorous beta rollout mandated by the USPS. Between April and June of this year, these indicia providers should be offering widespread service.

When you first sign up for Stamps.com's service, you download a small, free program that lets you purchase up to $500 worth of postage electronically and store it in your personal vault--Stamps.com's secure Web server. (Other Internet postage implementations use a special hardware device attached to your PC that keeps track of your postage on your computer.) Every time you print out an indicium, that price is subtracted from the total in your vault. You can buy more postage at any time via the company's e-commerce server--Stamps.com acts as a reseller of USPS postage.

There are big advantages to buying postage online. To begin with, you can send out all classes of mail without visiting a post office. (During the beta testing phase, Stamps.com only handles First Class, Priority, and Express Mail, but the company promises to support all classes of mail in its final release.) If you have a scale that weighs your mail, you'll always pay exactly the right amount, neither overpaying nor risking returned mail for additional postage. The indicium contains address information, so it can be read by the post office machines at great speeds and, theoretically at least, delivered more efficiently. And e-postage systems make it easy to see where your postal budget is being spent. Stamps.com generates reports, which you can download into a spreadsheet, showing who your mail is going to and what you've spent.

Internet Postage in Action

But do Internet postage systems make mailings easier to perform? They can. I found Stamps.com very convenient. First off, I imported my address book into that of Stamps.com--the software handles comma-separated files from Lotus Organizer, IE 4 Address Book, Outlook, Corel Address Book 8, ACT, and Palm Desktop. During the import, Stamps.com tidied up the scrappy entries without ZIP codes and standardized street names. (Stamps.com can also export these corrections back to a PIM.) The Stamps.com address book stays on your hard drive, and the company's secure server ensures that your data stays secret during the address-cleansing process. Once your address book is set up, it's easy to create mailing groups--you name the group, select recipients from a list of your contacts, and click the Add button.

When you're ready to mail, you log on to Stamps.com, supply a password, and select Print Postage for the main data entry screen. Pick an addressee or group, enter the weight of the mailing, and choose the class of mail. The site calculates the total cost of the mailing and lets you add your logo next to the postage mark.

Slip the requisite number of labels or envelopes in your printer, make sure your printer's configured correctly, and you're ready to print. Stamps.com deducts the postage from your online vault. Note that you must remain connected to the Internet during the print job.

Pros and Cons

Stamps.com's all-electronic approach is right on--it makes it possible to sign up, install software, buy postage, and start mailing quickly, with no delay waiting for a hardware dongle to arrive. You can also use your Stamps.com account from more than one location.

The company's Web-based approach does have a downside, however. If you create your mailings in dribs and drabs throughout the day and don't maintain a constant connection to the Web, you need to log on every time you print a mailing label. In this situation, a hardware-based vault is more convenient--that way you don't need an Internet connection to draw postage from your account, only to refill your vault when it runs low on credits.

Like other e-postage providers, Stamps.com is still working out the kinks. All the services are in beta testing, but the Postal Service allows only a certain number of beta testers per provider and it is taking its time approving these services for a wider audience. Stamps.com is still working with the postal officials to develop a way for people to get refunds if they make a mistake while printing postage. Currently, you also can't use indicia postage for mailings to foreign countries.

Evaluating the Alternatives

E-postage systems aren't going to be a great solution for everyone. Stamps.com says its service is aimed at small to midsize businesses that spend about $300 each month on postage. It's probably not the right choice for businesses sending out low-volume mailings of a predictable weight--they'll do better with a few sheets of self-adhesive stamps. High-volume senders will still be better off with a more traditional postal meter, like Pitney Bowes' Personal Post Office-- a small-business postage printer that rents for $19.75 per month plus postage or for $24.75 including a postage scale. (At press time, Pitney Bowes was offering the device for a free, 90-day trial run.)

There are drawbacks to both of these options as well. When you run out of stamps, you have to buy more from your local post office. Traditional postage meters are comparatively expensive to rent, and while you don't always have to take them to the post office for a refill anymore (Pitney Bowes provides phone or direct-dial modem updates), they're overkill for just a few daily mailings.

And Stamps.com isn't the only company in the indicia program. Neopost and E-Stamp will offer similar software-only systems that use a secure server as a vault, while E-Stamp and Pitney Bowes will offer hardware vaults that don't require an open Web connection for every mailing.

For small businesses, I like the idea of Internet postage, and I found Stamps.com a very convenient way to use it. I'd prefer a system that used a hardware vault so I didn't have to go online for my modest mailing sessions--but assuming the price is right (when it's set), Stamps.com seems to be a winner.

Matt Lake has racked up experience in three major corporations and one branch of the government. He currently maintains a small business from his offices in Philadelphia. You can reach him at mattlake@cis.compuserve.com.