From...

July 21, 1999
Web posted at: 2:08 p.m. EDT (1808 GMT)

by Cheri Paquet

(IDG) -- Gearing up for the nationwide launch of its Internet postage service, E-Stamp on Monday announced that Microsoft will feature its software and service on the software giant's Office Update Web site.

E-Stamp is developing strategic partnerships with software, PC, and Internet access companies in order to promote the adoption of online postage, said Ellen Perelman, E-Stamp's director of business development. E-Stamp also has partnered with Compaq, Yahoo and America Online.

Targeting the SOHO crowd

"Tapping into the Microsoft Office customer base will help E-Stamp expand its reach into the SOHO (small office/home office) market," said Perelman. E-Stamp is targeting its Internet Postage product at SOHO users who are looking for more cost-effective methods than making a trip to the post office or purchasing a metering machine, the company said.

About 70 percent of SOHO users, who spend between $50 to $500 on average in postage per month, prefer Microsoft applications, E-Stamp said.

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Most small businesses that have PCs or Internet access prefer a hardware and software package over software-only products and low-end meters, according to a recent International Data Corp. study.

All-in-one postage kit

E-Stamp Internet Postage lets you buy, download, and store postage on your PC.

The Internet Postage Starter Kit includes software and a "vault," which is a 1-inch device that attaches to the back of the PC and hooks up to a scale and a supply of labels and envelopes. After you enter the address, the software automatically verifies it, calculates the correct postage, and prints the stamp on to an envelope or label. E-Stamp will offer customers First Class, Priority Mail, Express Mail, and Parcel Post in stamps, which all have the meter-mail look.

E-Stamp has developed its postage software to tightly integrate with Microsoft applications, including Word, Outlook, and Microsoft Personal Address Book. The software also works with other applications and address books, such as GoldMine and Quick Books.

The kit will be priced under $50. Internet Postage can then be purchased online for a fee of no more than 10 percent of postage cost.

Pending approval

E-Stamp's Internet Service is expected to become available on Microsoft's Office Update Web site later this quarter. E-Stamp's postage software is pending U.S. Postal Service approval (USPS).

"The USPS is our regulator," Perelman said, adding that the USPS looks for technology that meets certain security and usability requirements.

E-Stamp's Internet Postage software, now in its final stages of beta testing, is being used by home-based companies and small businesses including eBay traders, accountants, attorneys and mail-order businesses.