Shares of Internet-based mailing and shipping solutions company Stamps.com (NASDAQ:STMP) fell as much as 10.4% on Monday after Pitney Bowes (NYSE:PBI) announced a new competing offering for its cloud-based SendPro mailing and shipping solution. Shares of Stamps.com closed the trading day down 7.9%.
Pitney Bowes asserted in a press release Monday morning that its new $5 SendPro delivers three times the benefits of Stamps.com's solutions for one-third of the cost.
In the release, Pitney Bowes explained the new offering:
Now for only $5 a month, businesses can receive full access to SendPro, including the ability to print stamps and shipping labels for the U.S. Postal Service (USPS) and other major carriers, and flexible postage payment options. The offer also includes a free 90-day trial, 10lb scale, $15 in postage and supply kit with labels and stamp sheets, for a total value of $135.
Investors may want to keep an eye out for a statement or competitive response from Stamps.com. In specifically naming Stamps.com in its press release, Pitney Bowes is clearly taking aim at its rival's customer base.