Profile: Digital River Inc (DRIV.O)
24 Oct 2014
Digital River, Inc. (Digital River), incorporated on September 25, 1997, provides end-to-end global cloud-commerce, payments and marketing solutions to a wide variety of companies in software, consumer electronics, computer games, video games and other markets. The Company offers its clients a broad range of services that enable them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales on a global basis while mitigating risks. The Company is engaged in providing outsourced commerce solutions globally to a variety of companies, primarily in the software and consumer electronics product markets.
The Company's services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, Website optimization, Web analytics and reporting, and CD production and delivery.
The Company's products and services allow the Company's clients to focus on promoting and marketing their products and brands worldwide while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. The Company provides access and uses of its platforms to its clients as a service as opposed to selling the software to be operated on their own in-house computer hardware. The Company's cloud-commerce store solutions range from simple remote control models to more comprehensive online store models.
In addition to the services the Company provides that facilitate the completion of an online transaction, the Company also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization, affiliate marketing, store optimization, multi-variant testing, Web analytic services and e-mail optimization. All of the Company's services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer.Additionally, through the Company's Digital River World Payments subsidiary, the Company offers a full range of payment processing services to clients. These services include multiple payment methods, fraud management, tax management, cloud-based billing and other payment optimization services.
Store Design, Development and Hosting
The Company offers its clients Website design services utilizing its experience and to create efficient and effective online stores. The Company's global-commerce solutions can be deployed quickly and implemented in a variety of ways from fully-functioning shopping carts through completely merchandised online stores. The online stores the Company operates for its clients often matches their branding and Website design to provide a seamless experience for shoppers. The Company manages the order process through payment processing, fraud screening and fulfillment (either digital or physical) and notifies the buyer via e-mail once the transaction is completed. Transaction information is captured and stored in the Company's database systems, an increasingly valuable source of information used to create targeted merchandising programs, e-mail marketing campaigns, product offers and test marketing programs.
For many of the Company's clients, the solution the Company provides is critical to their businesses and therefore the Company operates global data centers that perform and scales for continuous e-commerce operation in a high-demand environment. The Company operates multiple data centers globally, which feature fully redundant high-speed connections to the Internet, server capacity to handle unpredictable spikes in traffic and transactions, 24/7 security and monitoring, back-up electric generators and dedicated power supplies.
The Company's technology platforms support a wide range of merchandising activities. This enables the Company's clients to effectively execute promotions, up-sell, and cross-sell activities and to feature specific products and services during any phase of the shopping process. The Company's clients' online stores through the checkout and thank you pages, its solution allows clients to deliver targeted offers designed to increase order close ratios and average order sizes.
Order Management and Fraud Screening
The Company manages all phases of a shopper's order on its clients' online stores. The Company processes payment transactions for orders placed through its technology platform and support a wide variety of payment types, including credit cards, wire transfers, purchase orders, money orders, direct debit cards and many other payment methods in the United States and around the world. The fraud screening component of the Company's platform uses both rules-based and heuristic scoring methods which use observations of known fraudulent activities to make a determination regarding the validity of the order, buyer and payment information. The Company also provides denied-parties screening and exports controls, which are designed to ensure that persons and/or organizations appearing on government denied-parties lists are blocked from making purchases through its system.
Digital and Physical Fulfillment Services
The Company provides both digital and physical fulfillment services to its clients. The Company offers its clients a broad array of electronic delivery capabilities that enable delivery of digital products directly to customers' computers via the Internet. the Company's technology platform and then securely downloaded to the purchaser. Optionally, buyers can, for an additional fee, request that a CD be created and shipped as a backup for their order.
In addition to electronic fulfillment via download, the Company offers physical distribution services to its clients as well. The Company has contracted with third-party fulfillment agents that maintain inventories of physical products for shipment to buyers. These products are held by the fulfillment agent on consignment from the Company's clients. The Company provides notification of product shipment to the buyer as well as shipment tracking, order status and inventory information. The Company also provides a service called Physical on Demand (POD), which utilizes robotic systems to create a client-branded product CD and packaging materials after a POD order has been placed. The Company provides extended download services for digital products for additional fees, which enables buyers to download the products they have purchased more than once in the event of a computer failure or other unexpected problem. The Company offers management services relating to regulatory matters such as the Waste Electronics and Electrical Equipment laws.
The Company's client's option and for an additional fee, the Company provides telephone and e-mail customer support for products sold through its platforms. The Company provides assistance to buyers regarding ordering and delivery questions on a 24/7 basis in multiple languages. The Company continues to invest in technology and infrastructure to provides fast and efficient responses to customer inquiries as well as provide online self-help options.
Advanced Reporting and Analytics
The Company captures and store detailed information about visitor traffics for sales in the online stores the Company manages for its clients. The Company provides clients access to a collection of standard and customizable reports via its Web analytics technology. This enables the Company's clients to track and analyze sales, products, transactions, customer behavior and the results of marketing campaigns so they can optimize their marketing efforts to increase traffic, order close ratios and average order values.
Strategic Marketing Services
The Company offers a range of strategic marketing services designed to customer acquisition, improve customer retention and enhance the lifetime value of each customer. Through a combination of Web analytics, analytics-based statistical testing, optimization and direct marketing practices. The Company delivers and manages programs, such as paid search advertising, search engine optimization, affiliate marketing, store optimization and e-mail optimization on behalf of its clients. The Company can precisely determine the effectiveness of specific marketing activities, Website changes, and other actions taken by its clients.
The Company offers full service payment provider solutions for online merchants around the world. The Company connects businesses to the local payment methods that their customers prefer and support businesses to expands into new markets through enabling the acceptance and processing of a diverse range of payment methods and options. The Company offers a broad range of back office payment reconciliation services that result in a cost efficient and secure program for e-payments.
The Company sells and market these services through a direct sales force and channels partners located around the world, primarily in the United States and Europe. The Company's technology platform provides for high transaction throughput in a secure and data sensitive environment. These services are provided either via a direct interface between the client's commerce system and the Company's payment services platform or via a Payment Card Industry (PCI) compliant wrapped secure Web based payment page that is served to the client's commerce system on a transaction by transaction basis.
The Company competes with Oracle Corporation; IBM Corporation; Demandware, Inc.; hybris GmbH; IBM Global Services; Accenture, Inc.; AG; eBay, Inc.; Avangate BV; asknet AG; arvato Systems; WorldPay Ltd.;GlobalCollect; CyberSource Corporation; Square, Inc.; PayPal Corporation; ValueClick, Inc.; Microsoft Advertising; Amazon.com, Inc.; Buy.com, Inc.; Network Solutions, LLC; Akamai Technologies, Inc.;Yahoo!,Inc.; eBay, Inc., and Hostopia.com, Inc.
Digital River Inc
10380 Bren Road West
MINNETONKA MN 55343
Company Web Links
- Well-timed bullish option bets seen in Digital River weeks before deal
- Well-timed bullish option bets seen in Digital River weeks before deal
- Digital River to be acquired by investor group for $840 million
- Digital River to be acquired by investor group for $840 mln
- UPDATE 1-Telefonica makes offer for Mediaset's Digital+ stake