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Electronic Postage, Its Pros and Cons Report (Assessment)

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Updated: Jun 27th, 2020

Summary of the business process involving electronic postage (E-Stamp)

The electronic stamp postage meter for the office and home markets utilizes the internet procedures whereby the users utilize a digital stamp known as Information-Based Indicia (IBI). It makes use of a bar code that was on operation in earlier devices of the barcode utilized by the U.S. Postal service (USPS) for better speed processing and efficiency. The system has overcome the monthly release fee of postage meters.

The consumer is now in a position to print out account information directly at any required time, stored closely, or at a distant interference-free electronic vault of the personal computer. The system allows users to purchase the postage electronically using credit cards via the internet from an office supply store, recording of the payment in the vault occurs, and the user generates the stamps at free will without having to reconnect. The balance in the vault reduces as per the generations according to the classes or weight of postage made by the user. The final step entails carrying out the electronic verification before the transfer.

Other similar online services

Literature review

As Mould indicates (2006), the U.S. has various electronic shipping services on offer today. Other services include electronic directories, as illustrated by Pederson. (2000) More alternative utilized with the electronic stamp is the postage scale. The price increases on the postage create confusion among the consumers due to the dynamism involved.

According to Bushman, (2008), the click and ship services offered by the USPS is an online system that uses the regional system to consider the weight of the package and the distance to the destination. Just like the online services for selling books, the postage scale offers its users a twenty-four-hour ability to determine the exert weight and therefore enables payment for the actual amount other than the common standard stamp. (Windwalker, 2002) This was a stamp used for the common unit letters and those below a certain weight while one had to visit the posting offices to have the overweight letters checked.

Comparison between e-stamp and regular postage

The electronic postage has a slow growth rate, and the customer went back to the original post office services due to the processing cost, lack of grants by the USPS, initial capital for setup requirements, and complications of the procedures such as inability to print the digital stamp and the address simultaneously. The envelopes having pre-prints were never applicable for the electronic transfers since the service providers returned all mismatches to the senders. The sender then had to print the details in a separate label then press it on the pre-printed envelope.

Main pros and cons of the electronic postage

The advantages mostly relay on the cost, characteristics of the services, and convenience. A business owner wants a system that saves on the time to learn and process data. The electronic system of getting stamps to send mails is suitable due to user-friendliness and accuracy. The convenience may entail a timely delivery confirmation, the ability to create a track overspending, and modifying the reports. The electronic systems might have some hidden charges, such as disconnection fees during an early termination. The needs for additional equipments expect the printer and the computer also pose a big threat to the industry.

The major competitive setbacks experienced by electronic stamps entailed the hardware and importation costs. Comparing the investments to the revenue, the USPS Company suffers huge operating costs caused mainly by the customers who are not ready to embrace the technology. The advantage of the e-stamp is the improvement of internet-based activities such as electronic marketing, sales, and support for the developmental activities that are not achievable through the systems that lack connections.

Personal view over E-Stamp system

I do not agree with the USPS decision to stop selling the electronic postage stamps. The company ought to perform a proper company analysis and invest in accordance with the professional point of view. Finding assistance for the consumer with regard to the initial start-up costs would encourage them to acquire the start-up kits. The discounts offers would also give confidence to the consumers. Lastly, the consumer requires proper guidance on matters pertaining to technology. Most people will give up on technological advancement due to diminished in knowledge on how to undertake the procedures involved. The company should have the initiative to provide guidance. Other businesses interested in the same field, such as the e-bay ought to try to catch up and maintain a competitive edge to catalyze these improvements. (Sinclair, 2007)


Bushman, L. (2008). . Web.

Mould, M. E. (2006) Online Bookselling: A Practical Guide with Detailed Explanations And Insightful Tips, Michael Mould publishers.

Pederson, J. P. (2000) International directory of company histories, Volume 34. St. James Press publishers.

Sinclair, J.T. (2007) eBay business the smart way: maximize your profits on the Web’s #1 auction site. AMACOM Div American Mgmt Assn publishers.

Windwalker, S. (2002) Selling Used Books Online: The Complete Guide to Bookselling at Amazon’s Marketplace and Other Online Sites. Harvard Perspectives Press.

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