Reseller Discounts and Stamps.com

Who doesn’t want to get discounted postage rates, but the issue of USPS reseller discounts is getting some attention from Wall Street in recent weeks.

Accusations are flying that Stamps.com is abusing reseller discounts, but those allegations are coming from parties that appear to be attempting to lower the stock price of the publicly traded company in order to short the stock. The reports are attempting to sow fear into investors that the USPS could take away advantageous discounts from Stamps at a moment’s notice.

The reseller program was designed to attract businesses who might have been using rival shipping carriers. But when the USPS broadened its reseller program in 2009, the agency wrote, “While the Resellers Program gives USPS inroads into many new markets, it also offers a benefit for Postmasters. Because resellers will use PC Postage vendors for postage payment, the revenue generated will be credited to the five-digit ZIP codes where the packages enter the mailstream.”

While we’re disdainful of the motivation behind the recent Wall Street reports, scrutiny of the USPS reseller program doesn’t sound like a bad idea. For that matter, we’d love to see the books opened on some of the Negotiated Service Agreements that the USPS has entered into with private companies like eBay and Amazon, though there’s no reason to think that will happen.

 

See:

http://www.postaltimes.com/postalnews/stamps-com-under-fire-over-reseller-discounts/

http://www.ecommercebytes.com/cab/abn/y16/m07/i22/s05

 

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