CompUSA 2007 Annual Report Download - page 49

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6
We currently operate multiple e-commerce sites, including www.tigerdirect.com, www.compusa.com,
www.compusagoved.com, www.compusabusiness.com, www.misco.co.uk, www.globalindustrial.com,
www.tigerdirect.ca, www.misco.de, www.misco.fr, www.infotelusa.com, www.misco.nl,
www.globalcomputer.com, www.misco.it, www.misco.es, www.globalgoved.com, www.misco.se and
www.systemaxpc.com, and we continually upgrade the capabilities and performance of these web sites.
Our internet sites feature on-line catalogs of thousands of products, allowing us to offer a wider variety of
computer and industrial products than our printed catalogs. Our customers have around-the-clock, on-line
access to purchase products and we have the ability to create targeted promotions for our customers’
interests. Many of our internet sites also permit customers to purchase “build to order” PCs configured to
their own specifications.
In addition to our own e-commerce web sites, we have partnering agreements with several of the largest
internet shopping and search engine providers who feature our products on their web sites or provide
“click-throughs” from their sites directly to ours. These arrangements allow us to expand our customer
base at an economical cost.
Catalogs
We currently produce a total of 18 full-line and targeted specialty catalogs in North America and Europe
under distinct titles. Our portfolio of catalogs includes such established brand names as
TigerDirect.com™, Global Computer Supplies™,TigerDirect.ca™, Misco®, HCS Misco™, Global
Industrial™, ArrowStar™ and 06™. Full-line computer product catalogs offer products such as PCs,
notebooks, peripherals, computer components, magnetic media, data communication, networking and
power protection equipment, ergonomic accessories, furniture and software. Full-line industrial product
catalogs offer products such as material handling products and industrial supplies. Specialty catalogs
contain more focused product offerings and are targeted to individuals most likely to purchase from such
catalogs. We mail catalogs to both businesses and consumers. In the case of business mailings, we mail
our catalogs to many individuals at a single business location, providing us with multiple points-of-entry.
Our in-house staff designs all of our catalogs. In-house catalog design helps reduce overall catalog
expense and shortens catalog production time. This allows us the flexibility to alter our product offerings
and pricing and to refine our catalog formats more quickly. Our catalogs are printed by third parties under
fixed pricing arrangements. The commonality of certain core pages of our catalogs also allows for
economies of scale in catalog production.
As noted above, the increase in our internet-related sales allowed us to reduce the distribution of our
catalogs to 57 million in 2007, which was 3.4% fewer than in the prior year. In 2007 we mailed
approximately 40 million catalogs in North America, a 2.5% reduction from last year and approximately
17 million catalogs, or 5.6% fewer than 2006, were distributed in Europe.
Customer Service, Order Fulfillment and Support
We generally provide toll-free telephone number access for our customers. Certain of our domestic call
centers are linked to provide telephone backup in the event of a disruption in phone service. In addition to
telephone orders, we also receive orders by mail, fax, electronic data interchange and through the internet.
A large number of our products are carried in stock, and orders for such products are fulfilled on a timely
basis directly from our distribution centers, typically on the day the order is received. We operate out of
multiple sales and distribution facilities in North America and Europe. The locations of our distribution
centers enable us to provide our customers next day or second day delivery. Orders are generally shipped
by third-party delivery services in the United States and in Europe. The locations of our distribution
centers in Europe have enabled us to market into additional countries with limited incremental
investment. We maintain relationships with a number of large distributors in North America and Europe
that also deliver products directly to our customers.