Overstock.com 2005 Annual Report Download - page 11

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Key Relationships
Manufacturer, Supplier and Distribution Relationships. It is difficult to establish closeout buying relationships with
manufacturers. Trust and experience gained through past interactions are important. We believe our business model reduces the risk to
the manufacturer that its discounted products are sold alongside its full-priced products. Our supplier relationships provide us with
recognized, brand-name products. The table below identifies some of the brand names that generate significant revenues in various
departments.
Anne Klein Mai RCA
AOL Time Warner Meyer Corporation Samsonite
Bissell Movado Seiko
Blue Ridge Home Fashions Novica Simon & Schuster
Fuji Linon Home Décor Sony
Hewlett-Packard Panasonic Swiss Army
Hoover Philips Vera Wang
Kenneth Cole Random House Zegna
To date, we have not entered into contracts with manufacturers or liquidation wholesalers that guarantee the availability of
merchandise for a set duration. Our manufacturer and supplier relationships are based on historical experience with manufacturers and
liquidation wholesalers and do not obligate or entitle us to receive merchandise on a long-term or short-term basis. In our direct
business, we purchase the products from manufacturers or liquidation wholesalers using standard purchase orders. Generally, suppliers
do not control any of the terms under which products are sold over our Websites.
Sales and Marketing
We use a variety of methods to target our consumer audience, including online campaigns, such as advertising through portals,
keywords, search engines, affiliate marketing programs, banners and e-mail campaigns, and we are able to monitor and evaluate their
results. We seek to identify and eliminate campaigns that do not meet our expectations. We launched our national television and radio
branding campaign in 2003, and have continued to develop it since. We develop our branding campaigns internally and we believe
that doing so is cost-effective.
Products
Online Products
We offer products under 5 tabs: Shopping, Books, Music, Movies & Games, Bulk Buys & Business Supplies, Auctions Tab and
Travel Tab. Currently, our products under our Shopping Tab are organized into eight different product departments:
Apparel Home & Garden
Electronics & Computers Jewelry & Watches
Gifts Sporting Goods
Health & Wellness Worldstock
Each of these departments has multiple categories that more specifically define the products offered within that department. For
example, the following product categories are currently within the "Electronics & Computers" department:
Audio & Video Home Office Equipment
Cameras & Optics Computers & Printers
Telephones
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