Agreement Signed with Ozemail to Sell Software Online
Oct 9, 2001
Document date: Wed 10 Oct 2001
Published: Wed 10 Oct 2001 14:19:40
Document No: 142983
Document part: A
Market Flag: Y
JUMBO CORPORATION LIMITED 2001-10-10 ASX-SIGNAL-G
HOMEX - Brisbane
Directors of Jumbo Corp are pleased to announce that an agreement has been signed with OzEmail to sell software online. The deal is a result of a previously announced investigation into new products with strong online advantages and is consistent with the company's vision to use its technology to competitively trade selected products online.
OzEmail has been providing Internet connection services since 1994 and has recently developed the OzEpay secure online shopping system.
Under the terms of the agreement, Jumbo will integrate the OzEpay online payments system into its existing range of payments systems available in the Jumbostore e-commerce system.OzEpay will then be offered as a payments option available to eligible OzEmail customers who wish to make an online purchase without using their credit card.
OzEmail will promote the software to its customers and revenue will be shared between Jumbo and the software supplier. The first software title was released to OzEmail customers on Friday 28th September and sales since then have been encouraging. The software selected for this release was "TermiNET", a personal firewall software application designed to improve security on personal computers fromhackers. OzEmail included information about TermiNET in their regular newsletter to OzEmail customers with a link to a web site developed by Jumbo where the software could be purchased and downloaded immediately.
Jumbo has also signed a software supply agreement with Manaccom Pty Ltd to supply a range of software titles for online sale to OzEmail customers. Manaccom is a leading software publisher and distributor in Australia and has been supplying software for over 15 years. The company supplies a variety of software titles including security, business and educational software. Other titles include "PC-Cillin" anti-virus software and "Net Nanny" safety and privacy software for the Internet. Manaccom supplied the license to sell TermiNET to OzEmail customers.
ADVANTAGES OF SELLING SOFTWARE ONLINE
"Software is an example of the type of product that Jumbo believes is ideally suited to online sale", said Mr Veverka. "There are significant advantages in buying software online rather than in a box from a physical store, such as instant download and no packaging costs". Jumbo has previously announced that it is focusing on products that have an advantage selling online over selling through traditional channels.
The Jumbo e-commerce system was modified to allow customers to instantly download the software following an online sale, allowing instant delivery and use of the software. Furthermore, the cost of the software is lower than the boxed version, because expensive printing, packaging and physical delivery was not required. These factors combined to provide customers with a stronger selling proposition and greater customer satisfaction.
"We intend to actively seek further opportunities to sell software online now that we have built the necessary facilities to manage the customers", said Mr Veverka. "I believe that selling software online is a significant opportunity for Jumbo to continue the growth reported over the last 4 quarters".
INCREASES REVENUES AND DECREASED COSTS
As previously announced, Jumbo has delivered 4 consecutive quarters of improved results with gross turnover increasing from $205,000 in the September 00 quarter to $620,000 in the June 01 quarter.Operating expenses have decreased from $363,000 in the September 00 quarter to $254.000 in the June 01 quarter. This demonstrates that the company is capable of growing even in a slow market while keeping costs under strict control.
For further enquiries, please contact:
Mike Veverka CEO
Ph: (07) 3831 3705
Fax: (07) 3831 9720
http://www.ozepay.com.au (OzEpay Premium Merchants)
Corporate Web Site: