Digital River Commissioned Study Explores Why More Branded Manufacturers Are Opening Direct-to-Consumer Ecommerce Channels

Digital River, Inc. (NASDAQ: DRIV), a leading global provider of Commerce-as-a-Service solutions, announced the release of a complimentary study, Be Direct: Why a Direct-to-Consumer Online Channel is Right for Your Business. The study builds a compelling business case for why branded manufacturers need to move quickly to build a direct-to-consumer (DTC) online channel – and explores how it can drive revenue, customer relationships and channel performance. The commissioned study was based on results of an in-depth survey of U.S. branded manufacturers, which was conducted by Forrester Consulting on behalf of Digital River.

“One of the most striking findings in the study was that an overwhelming majority of companies that have implemented DTC ecommerce channels – 76 percent – reported that their programs either met or exceeded revenue targets,” said Scott Heimes, Digital River senior vice president and CMO. “The research also addressed a key barrier to DTC channel adoption – the fear that it would conflict with other channels. Instead, the study found that if handled appropriately, DTC channels can actually enhance the performance of other channels. We believe these findings have immediate, real-world applications for branded manufacturers everywhere.”

Some of the key findings of the industry survey include:

• Predictions by branded manufacturers that their DTC online channel will be the highest generator of sales revenue within two years;
• The surprising effect a DTC ecommerce channel can have on retail and channel relationships; and
• The impact of ecommerce on customer engagement and experience with a brand.

“Given the increasingly prominent role DTC channels are playing in driving sales revenue and customer expectations, branded manufacturers can’t afford to procrastinate,” continued Heimes. “This study provides an overview of the landscape and gives branded manufacturers insights into how other companies have met this challenge. It provides a conceptual framework that branded manufacturers can use to compete – and win – in a changing marketplace.”

For a free download of Be Direct: Why a Direct-to-Consumer Online Channel is Right for Your Business, please visit http://driv.ws/1z. This study also served as the basis for a recent Digital River webinar, which featured guest speaker Andy Hoar, principal analyst from Forrester Research, Inc. To access the complimentary webinar, go to http://driv.ws/20.

To speak to the Digital River team in person about the study results, visit booth #1629 at the Internet Retailer Conference and Exhibition (IRCE) in Chicago from June 10-13, 2014.

About Digital River, Inc.

Backed by 20 years of e-commerce experience, Digital River is recognized as a leading global provider of Commerce-as-a-Service solutions. Companies of all sizes rely on Digital River’s multi-tenant, SaaS commerce, payments and marketing services to manage and grow their online businesses. In 2013, Digital River processed more than $30 billion in online transactions, connecting B2B and B2C digital products and cloud service companies as well as branded manufacturers with buyers across multiple devices and channels, and nearly every country in the world.

Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website, read the Digital River Blog, follow the company on Twitter or call +1 952-253-1234.

Digital River is a registered trademark of Digital River, Inc. All other trademarks and registered trademarks are trademarks of their respective owners.

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