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Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
Dr business models   nikon 1
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Dr business models nikon 1

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  • 1. Digital River Business Models1 Digital River Business Models • Reseller (Standard) • Submitter Plus
  • 2. SOR - Definition2 • Seller of record (SOR) • The “seller” (i.e., the party who transfers title of the product to the purchaser) • The SOR sets the retail sales price (in most circumstances) • The SOR is responsible for establishing the returns policy • The SOR is responsible for setting the terms and conditions of sale
  • 3. MOR - Definition3 • Merchant of Record (MOR) • The party through whose merchant account a transaction is processed • The MOR is responsible for all processing fees incurred in connection with the transaction • The MOR is responsible for charge backs/fraud (may pass this risk to the client contractually) • The MOR is also the SOR in the Reseller model (not in Submitter Plus)
  • 4. Reseller Model4 Digital River • Merchant of Record (MOR) • Seller of Record (SOR) Characteristics • Standard (90% of DR sites are Reseller Model) • Site time to market is faster (no bespoke agreement required) • Standard financial set-up processes • Legally, the seller of record sets the end consumer price • Top-line revenue is booked
  • 5. Submitter Plus Model5 Client • Seller of Record (SOR) Digital River • Merchant of Record (MOR) Characteristics • Less than 10% of clients use this model • Extended time to market (Tri-party agreements are required for Credit Card Handling), VAT tax issues, WEEE fees, etc. • The submitter plus model requires a DR Executive sign-off • Top line revenue is with the client (vs. net revenue) • Seller maintains consumer price setting control
  • 6. Ownership and Risk Matrix6 Ownership and Risk Matrix Who owns the risk? Reseller Submitter Plus Areas to Focus Price Control DR Client x Tax Nexus DR Client x Top line Rev DR Client x Settlement/Funding DR DR Reconciliation Services DR DR Charge back Liability DR* DR* Customer Service DR/Client DR/Client Card Association Rules and Compliance DR DR KYC/AML/DPL DR DR Alternative Payment Methods Yes Yes Product Liability Client Client * Charge Back Liability is with Digital River, however the liability may be transferred to the Client based on contractual agreement.
  • 7. Legal flow for Reseller7 Reseller
  • 8. Legal flow for the Submitter Plus8 Model • Submitter Plus Model

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