PSINet Teams With Reshare Corporation to Deliver First Comprehensive Channel Conflict Solution for Channel-Dependent Companies
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 8, 2001--
Partnership to Serve Emerging $300 Billion Market Opportunity
PSINet (Nasdaq: PSIX), The Internet Super Carrier, today announced a three-year strategic partnership with Reshare Corporation to offer Reshare's patent-pending Channel Preservation(TM) Technology (CPT) to its clients that face channel conflict issues as they develop eBusiness strategies. In return, PSINet will become the preferred vendor for web hosting and CPT(TM) application development for all of Reshare's future clientele.
Channel conflict usually occurs when a channel-dependent manufacturing company chooses to sell its products directly to consumers over the Internet, circumventing their traditional distribution and retail partners. Reshare's CPT technology solves these issues by enabling manufacturers to sell direct and still preserve their channel relationships and agreements. CPT apportions profits in an online environment in exactly the same way they are allocated in the bricks and mortar world.
Reshare technology is based on a patent-pending business model that enables any product to be sold on the Internet by requiring the consumer to identify the retailer they normally buy from. The retailer, distributor and all those in the distribution channel then receive the same remuneration as if the sale had occurred in the retail store. If the consumer has not purchased the product before or has no allegiance to a specific retailer, Reshare technology chooses the closest retailer to the consumer and then credits the retailer with the sale.
A study by Forrester Research indicates that manufacturers that rely on distributors have been latecomers to eCommerce because no company has solved what 66% of manufacturers cite as the core issue: selling directly to consumers online while keeping distributors happy. As the first-mover to resolve the core barriers these industries face, Reshare and PSINet are well positioned to capitalize on what Forrester estimates to be a $300 billion dollar market opportunity.
"We are delighted to have Reshare as a strategic partner," said John Scanlon, president of PSINet's U.S. Midwest Region. "Reshare's innovative approach to channel preservation as well as its deep understanding of important vertical markets will provide us with a new area of expertise in the eBusiness solutions PSINet develops for its clients."
"The partnership is a very unique opportunity for us to work collaboratively with one of the world's top providers of eBusiness strategies and solutions," said Adam G. Southam, Reshare's CEO. "Through PSINet, we gain enormous resources to develop true end-to-end eBusiness solutions for large channel-dependent industries and companies that will help them sell directly on line and still preserve their critical channel relationships."
Reshare Corporation is a specialized provider of e-commerce technology and marketing services headquartered in Eden Prairie, MN. Reshare has developed the industry's only complete solution to channel conflict, which includes patent-pending technologies and processes. Its products include Channel Preservation Technology (CPT), which enables channel-dependent companies to sell directly to consumers via the Internet. Profits made from these purchases are apportioned to channel partners by CPT using a financial model similar to the one used for traditional purchases. CPT also links new customers with appropriate channel partners, ensuring an ever-growing customer base and revenue stream. A number of enhancement products for CPT are also available. In addition to its technology portfolio, Reshare is a full-service consulting and marketing services company, providing specific capabilities in Internet strategy, web design, implementation and creative services. |
