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Alternative 2: Digital River
digitalriver.com

Digital River, based in Eden Prairie, Minn., has worked with 40,000 online stores to build e-commerce functionality, starting with basic shopping cart features. Understanding that each business has different needs, Digital River can implement new features as its clients grow, such as multi-currency support for overseas expansion or integrating “try before you buy” options. Best selling point: Digital River does not hold sellers’ money and will take the hit if a product needs to be returned.

“Digital River understands that small business owners need that cash immediately,” explains David Heath, CEO of Matrix Games, a computer game company that has worked with Digital River for three years.

Digital River has no up-front cost and won’t charge until the first sale. Then, its fee is based on performance, beginning at 2.9% plus a $1.00 transaction fee.

“Our cost analysis shows that it would be foolish for us to try alone what Digital River does,” Heath says.

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