Tuesday, 21 June 2016

How to reduce Amazon Simple Email System (SES) costs

Save money - stop paying for undeliverable emails

Some Email Service Providers charge for bounced emails, so it makes sense to remove bad emails from your lists periodically, or to throttle them at the door and not let them on your list at all.

Amazon SES is an example of an email provider that charges for all emails, whether or not they are deliverable. So you waste money paying for emails that can simply never be delivered. Costs are simply a straight line function that depends on the size of your list and the amount of emails you try to send.

What are you paying Amazon SES for your bad emails?

The Amazon SES service is a "pay as you go" email service provider.  It's designed for sending transactional emails and marketing content, so it deals with volume and speed.  At today's date, there's a $1 USD fee for every 10,000 emails sent and an additional charge for sending attachments, which is based on file size.

There's no such thing as a typical list, but we can make some reasonable assumptions, based on results of the volumes of lists we validate. It's reasonable to say that in an average email address list there will be between 25% and 40% undeliverable and unknown addresses. The older the list, the higher the rate of bad emails.

So to mail to a list of 1,000,000 emails, once a month will cost you between $300 and $480 a year, just for the emails that aren't delivered. That's if you aren't sending an attachment.

There are soft costs too in sending emails to bad email addresses. You can read more about that here.

How to reduce email costs 

It is simple - remove bad emails from your list. Validate your emails in a way that suits your business. It may be to bulk clean your list before you send it, or to validate online with an API at point of entry, or regularly as part of your data hygiene schedule.

The cost savings will depend on your list and how often you validate, as well as whether it's a one-off or using an API. In addition to saving money by not emailing bad addresses, you'll also see your marketing results improve and your reporting will be more reliable. Bonus - yay!

Because we're the only email validation service provider that accurately validates Yahoo addresses, we offer an extra cost saving by giving email lists a thoroughly good clean. If you are an Amazon SES user operating a consumer facing business, cleaning Yahoo addresses will save you money and improve your deliverability rates, even if you have already had your list validated without the Email Hippo stamp of authenticity.

Further reading:
How to gather clean data (so how to save Amazon SES costs by keeping your list clean)
Current Amazon SES pricing 
Email validation pricing

Note: The information about Amazon SES pricing is current at 21st June 2016. Please check for current pricing.

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