Stamps.com decided to end with USPS to start with Amazon

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    Stamps.com is untying it longtime knots with US Postal Service, as it has ended exclusivity requirement of the postal service and has been betting on Amazon.

    Stamps.com, as it reported in an SEC filing earlier this month, came on unveiling that it going to do work with Amazon for its disrupting approach in shipping and logistics.

    Stamps.com said that Amazon is foraying into the shipping business and in future they are likely to be making shipping deals with the competitors of USPS which are likely to be well-positioned to excel in the shipping industry in the years ahead.

    Company also said that its nonnegotiable term of not continue to exclusively do business with USPS, to which it did not agreed or even refused to accept any other of the partnership proposal terms, which led Stamps.com to spur complete termination of the partnership.

    Amazon’s Prime service is popular for delivering shipping in within two-days and Stamps.com said that its customers also demand similar services which Post Office, due to its own limitations, is unable to provide but offering other rival services like UPS, DHA and FedEx.

    Setting the company’s corporate strategy to collaborate with the Amazon is for the assumption that Amazon will be holding a major share in global shipping business, said Ken McBride, CEO of Stamps.com, on the company’s earnings call Thursday. He added that Amazon has proved itself to be disrupting the shipping industry which is a fact that is well-established, and for the reason every company working in the shipping business should have to take the Amazon’s competition seriously.

    McBride also hinted that though company will continue to be providing its customers to print out stamps, but the current decision to end exclusivity of USPS will likely to be hurting company’s business over the next five years, which could lead its revenue to fall as much as 8 percent in this year.

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