This article is brought to you by Retail Technology Review: European launch of arvato RED e-distribution platform for software publishers & online retailers.
Media and communications services provider arvato digital services, a division of Bertelsmann AG, has announced the European launch of its new e-distribution platform arvato RED (Retail Electronic Distribution). The RED distribution platform, acquired by arvato in Q3 2009 from Canadian technology company Protexis, is now fully integrated into the arvato product range to seamlessly deliver digital services for online stores.
Initially released in North America in 2007, arvato RED has a growing presence in Europe. It brings together online merchants and publishers worldwide and boasts a comprehensive portfolio of software and games packages as well as other niche products. The company reports that, historically, software vendors have been unable to properly tap the potential of the multi-billion dollar ESD (Electronic Software Distribution) market and were restricted to selling their licences directly through their own websites. Up to 80 percent of consumers, however, prefer to buy software centrally from mainstream sources.
The problem for the main online retailers was that different software vendors would use different platforms for managing their online sales. This meant they would have to use a separate ESD platform for every manufacturer which proved too complex and costly to manage. Alternatively they could outsource through third party or white label stores. The problem for vendors here was that it did not give them full control and provided the online customer with a fraction of the choice available in the high street.
The arvato RED distribution platform solves all of these problems by providing a unified, seamless interface between content providers (such as software manufacturers) and online stores. Manufacturers enrol their product just once to the RED distribution platform and it is immediately available through countless online shops to millions of consumers. Retailers may stock electronically distributed products from various publishers without having to sign up individually with each manufacturer or manage the downloads on their own systems.
arvato RED supplies the stores with the latest products and takes care of managing the downloads seamlessly in the background. Retailers have complete control over their customer and revenue streams and avoid the cost of complex supply chains. Consumers also benefit from a smooth, uninterrupted shopping experience. They can visit their favourite online stores, choose a mix of software download licences and mail delivered items, place them in the same basket and pay for them in a single secure electronic transaction. The arvato RED solution can be readily expanded to include other arvato offerings such as physical delivery, online marketing or financial services.
arvato RED software vendor benefits:
Very efficient "build-once, sell-to-many" online process: manufacturers have their own interface with the RED distribution platform, linked seamlessly with online stores, for full control of their products
Opportunity - through promotions and discounts with various online stores on RED - to come into direct contact with retailers and open up new revenue streams
Increased customer reach : ability to sell to every consumer that shops online today
Leverage the sales and merchandising expertise (cross-selling, up-selling etc.) of online stores to increase sales.
arvato RED online retailer benefits:
Online stores can seamlessly integrate with the RED-platform to add new software and games quickly and easily to their product portfolio, without having to deal with the various requirements of different individual software manufacturers.
Total control: The integrated solution keeps the retailer in complete control over customer data, sales and inventory as well as pricing.
Allows physical and digital goods to be purchased in a single integrated shopping cart. This is a unique feature so far.
Simplified billing with the customer: one shopping cart, one invoice, one payment transaction.
Online stores can offer their customers a continuous online shopping experience without interruptions.
arvato Digital Services new arvato RED service is launching with the latest Microsoft Windows 7 and Microsoft Office 2010 available immediately for download. By extending the digital delivery reach of Microsofts Windows 7 and Office titles, European retailers with online offerings will henceforth be able to easily add Microsoft to their product portfolios particularly as the arvato RED platform seamlessly integrates with existing e-commerce shops. Alternate and notebooksbilliger.de in Germany are the first online retailers on board. They are successfully selling the new Microsoft Office 2010 package in ESD form with the help of arvato RED since early June. The service will pilot in Germany, France and the UK, then be rolled out to the rest of Europe in the coming months.
"The online channel is the future of software sales. With Arvato RED we are very pleased to provide software vendors and online stores with a unique and very simple way to reach and sell to consumers through the web," said Frank Schirrmeister, managing director, arvato digital services. "Being selected as Microsofts European eDistributor is certainly yet another important milestone for RED.
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