Digital River, Inc. (DRIV) has recently signed a three year agreement with imaging leader Nikon Inc. Under the agreement, Digital River will handle Nikon’s end-to-end e-commerce operations, including order and payment processing, subscriptions, digital download, fraud protection and e-marketing through its Global Commerce enterprise solution.
Global Commerce solution is a part of Digital River’s new e-commerce portfolio, which also includes Digital River Commerce Express and Digital River My Commerce. These three e-commerce solutions focus on building and optimizing the online marketing and sales of digital and physical products across international borders. Global reach is central to the solutions, which is why they support a range of local and global payment methods, currencies, languages and changing regulations such as taxes, privacy issues, export laws, currency exchanges, recycling fees and more.
Earlier, Digital River reported better-than-expected results for the third quarter and gave an upbeat guidance for the upcoming quarter.
Digital River is on the lookout for new business in order to replace the loss of its prime customer – Symantec Corporation (SYMC). Symantec did not renew its e-commerce agreement with Digital River, which ended on June 30, 2010. The loss will adversely impact the top line of Digital River as Symantec accounted for 21.5% of the total revenues in 2009.
However, Digital River has entered into several new customer agreements, which are expected to contribute to top-line in 2011. The company recently signed an agreement to manage the European online sales for Freecom, a Mitsubishi Kagaku Media company, which designs, manufactures and markets innovative desktop and mobile storage solutions, network-attached storage devices, flash drives, DVD burners and professional tape drives.
Digital River also extended its e-commerce deal with Microsoft Corporation (MSFT) through October 31, 2013. The agreement was originally scheduled to end in June 2012. As per the new agreement, Digital River will build, host and manage an e-commerce store for Microsoft that will support the sale and fulfillment of Microsoft and third party software as well as consumer electronics products to customers in the United States. In addition, Digital River might also maintain its role as a reseller of Microsoft products via Digital River’s existing online stores.
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