The online provider of postage and related services reported a decline in net income on a 2% increase in revenue for the first quarter, but says it’s “in a great position to succeed” by supporting the growth in B2B and B2C ecommerce shipments at UPS and FedEx.

Stamps.com Inc. is coming off a challenging first quarter, when net income fell 67% year over year to $15.8 million on a 2% rise in revenue to $136.0 million.

But a domestic and worldwide expansion of ecommerce, along with expanding shipping services by UPS, FedEex and others for B2B as well as B2C ecommerce shippers, are all contributing to a brighter revenue future, Stamps.com CEO Ken McBride said on a conference call with investment analysts earlier this month, according to a transcript from Seeking Alpha.

“Ecommerce-driven packages have become a larger and larger portion of the total package industry and the growth in trends in ecommerce are the most significant factor driving overall package growth worldwide,” he said. “The incumbents in the U.S. shipping business have been getting more and more aggressive in their approach to commerce as the competition heats up amongst them and all the new entrants in the shipping industry. For example, UPS publicly announced a new corporate transformation focus last fall, focused on B2B and B2C e-commerce and focus on enhancing services and value for small and medium-sized businesses.”

McBride added, “FedEx has also come out with some very good programs and products that are very attractive for our e-commerce customers. For example, FedEx One Rate heavily discounted new service that offers two day guaranteed flat rate shipping to anywhere in the country at very attractive pricing. And our customers are reacting positively to that solution.”

At Stamps.com, McBride said, “We have amassed a significant number of assets in worldwide ecommerce shipping that put us in a great position to succeed, as all of these rapidly changing global shipping trends unfold.”

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UPS and FedEx eye more ecommerce growth

In the first quarter, UPS noted that its overall shipping volume was buffeted by bad weather and the timing of the Easter holiday in the second quarter instead of Q1 as in 2018. Nonetheless, it said first-quarter B2B shipments increased 2.0% year over year, close to the 2.5% growth in B2C shipments. UPS said its total Q1 revenue inched up 0.3% to $17.16 billion. It added that its crucial metric of U.S. domestic package average daily shipment volume increased 2.2%, and that Q1 freight shipment volume increased 11.5%.

FedEx is also seeing growth from both B2B and B2C ecommerce shipments. “This represents a significant additional opportunity for growth,” Raj Subramaniam, president and chief operating officer, said on the company’s earnings call for the fiscal third quarter ended Feb. 28, according to transcript from Seeking Alpha. He added that FedEx recently expanded facilities for the carrier’s “rapidly growing oversized package ecommerce segment.”

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