Overstock.com 2010 Annual Report Download - page 10

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Table of Contents
For 2010, 2009 and 2008, the percentages of gross sales contributed by similar classes of products were as follows:
Product Class 2010 2009 2008
Home and garden(1) 55% 53% 50%
Jewelry, watches, clothing and accessories 23% 24% 24%
BMMG, electronics and computers 11% 14% 18%
Other 11% 9% 8%
Total 100% 100% 100%
Home and garden includes home décor, bedding, bath, furniture, housewares, garden, patio and other related products.(1)
As the number of products and product categories change throughout the year, we periodically reorganize our departments and/or categories to better
reflect our current product offerings.
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, e-mail, direct mail, viral and social media 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 also do brand advertising through television, radio, and print ads. We generally
develop these campaigns internally.
Customer Service
We are committed to providing superior customer service. We staff our customer service department with dedicated in-house and outsourced
professionals who respond to phone, instant online chat and e-mail inquiries on products, ordering, shipping status, returns and other areas of customer
inquiry. As a result of this commitment, in each of the last five years we have ranked in the top five companies in customer service rankings among all U.S.
retailers, according to rankings published in the NRF Foundation/American Express Customer Service Survey.
Technology
We use our internally developed Websites and a combination of proprietary technologies and commercially available licensed technologies and solutions
to support our operations. We use the services of multiple telecommunications companies to obtain connectivity to the Internet. Currently, our primary
computer infrastructure resides at a co-location facility in Salt Lake City. We also have a second data center which we use primarily for backups, redundancy,
development, testing, and our corporate systems infrastructure.
Competition
Internet retail is intensely competitive and has relatively low barriers to entry. We believe that competition in this industry is based predominantly on:
price;
product quality and selection;
shopping convenience;
order processing and fulfillment;
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