E-Stamp Hopes to Lick Competition with eBay Deal
E-Stamp, a provider of postage over the Internet, scored a coup on Wednesday, striking an exclusive distribution deal with leading auction site eBay.
The agreement, financial terms of which were not disclosed, makes E-stamp (ESTM) the sole provider of Internet postage on eBay's (EBAY) Web site. E-Stamp will be prominently featured on the eBay site, which has 7.7 million members, and receives around 10 million unique visitors a month.
The two companies have a special affinity, since people selling products on eBay use a lot of postage sending the sold items to the buyers.
The E-Stamp strategy includes offering eBay members discounts on the hardware needed to start downloading postage from the Internet, and it will also reduce convenience fees for eBay users.
E-Stamp and eBay tested the first joint promotion in December, making a special holiday offer to members.