When choosing among online postage services, postage meters, and fulfillment services, the right choice depends on what -- and how much -- you've got to ship. We explain the details -- and the pros and cons -- of each option.
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Who knew shopping online could actually help save the environment? According to DMAchoice.org, more than 3,000,000,000 pounds of carbon dioxide would be saved if customers eliminated two car trips to the mall with shopping via catalog. As customers increasingly turn to online retailers and other faraway sellers for purchases large and small, it's no surprise that many businesses are focusing on decreasing shipping costs.
Streamlining mail efforts is one of the most effective ways to save time, cut costs, and get orders into the hands of customers faster. So how do you know what to look for when leasing a postage meter, comparing digital scales, hiring a fulfillment company, or implementing other product-shipment solutions?
Online Postage
Businesses with light shipments (envelopes and other small or lightweight containers) or those that ship infrequently probably don't need the help of a fulfillment service or an advanced on-site mailroom. The simplest shipping solution is an online postage management system like Stamps.com or Endicia. These services use United States Postal Service shipping solutions in tandem with online software that calculates shipping charges for any service the US Postal Service provides: you can use an online service to ship standard mail, overnight deliveries, certified shipments, or parcels that require signature verification upon delivery.
How It Works: You pay a monthly account fee (usually less than $20) in exchange for software that calculates, charges, and creates labels for shipments. The software lets you "store" settings for repeat mailings (i.e., shipments to the same address, or shipments of the same weight) and calculate exact postage costs based on the shipment destination. Most online services provide small capacity (5 lb.) digital scales for free when you sign up for an account. If you need a scale that weighs larger shipments, you can purchase one separately.
The Pros: This is the cheapest and simplest method of on-site mailing. You pay a monthly account charge and are billed automatically for shipment expenses as they are incurred. Advanced options, like overnight shipments and receipt of delivery verification, are available at regular USPS rates. Since the entire service is online, there are no "reset" fees (typically assessed with traditional postage meters) to adjust meter settings if postage rates change. You can also customize shipping labels and postmarks with your company logo or graphic.
The Cons: If you need to ship heavier packages or bulk mailings, you'll need to purchase additional equipment beyond what's provided with your account. You have to wrap and pack shipments yourself, which means you'll need to purchase and store your own boxes, packing tape, and other shipment materials. These systems work best for smaller or home-based businesses with limited mailing needs. If you're sending more than a few dozen items out a week, or if most of your product shipments with more than five pounds, a more advanced solution might be advisable.
Postage Meters
On-site postage meters, or postage machines, are one step up from online mailing systems. Postage equipment companies like Pitney Bowes and NeoPost provide equipment to automate your mailing process: specialized mail equipment can fold, seal, stamp, and stack thousands of outgoing envelopes in just a few minutes.
How It Works: The meter itself is leased (rather than purchased), usually for about $20 a month or less. Additional mailing equipment that works with the meter will cost more. The meter transmits information about shipment charges as they are incurred. You can "fill up" the meter in advance and apply charges to your balance as shipments go out, or pay a higher monthly fee for a "pay-as-you-go" plan, where you're billed automatically at the end of each month for all of your postage charges.
The Pros: Postage meter equipment can be purchased or leased along with the meter. If you need to shrink wrap shipments, fold brochures, or seal envelopes, machinery can perform these tasks quickly. Instead of purchasing mailing equipment (larger capacity digital scales, collation machines, etc.) up front, as with an online service, costs can be spread out over the lifetime of the machinery. Postage meter equipment ranges from very simple, limited-use options (a "mail station" that weighs and stamps envelopes) to advanced offerings that are suitable for a large company mailroom.
The Cons: Postage meters are leased out only by USPS-licensed vendors, so there isn't a lot of room for competition (or bargaining) on the meter base itself. Most vendors, in an effort to encourage you to purchase their supplies (ink, envelope sealer, etc), will set up a contract for use of the meter, automatic supply delivery, and machinery maintenance. Such arrangements usually aren't the most cost effective for small or home-based businesses. Businesses with a medium to high shipment volume, where most shipments are mail-based (envelopes, brochures, etc.) rather than packages, can benefit the most from this type of mailing system.
