CompUSA 2014 Annual Report Download - page 8

E
-commerce
The worldwide growth in active internet users has made e-commerce a significant opportunity for sales growth.
The increase in our internet-related sales enables us to leverage our advertising spending. We currently operate multiple e-
commerce sites,
including:
We are continually upgrading the capabilities and performance of these websites. Our internet sites feature online catalogs of hundreds 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, online access to purchase products and we have the ability to create targeted promotions for our customers’ interests.
In addition to our own e-
commerce websites, we have partnering agreements with several of the largest internet shopping and search engine
providers who feature our products on their websites 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 9 full-
line or direct mail publications in North America and Europe under distinct titles. Our portfolio of
catalogs includes such established brand names as TigerDirect.com™, Misco®, Global Industrial™, Nexel™ and Inmac WStore®.
We mail
catalogs to both businesses and individual 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-contact. Our in-
house staff designs all of our catalogs, which reduces overall catalog
expense and shortens catalog production time. 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.
Continuing our focus on internet advertising, the distribution of our catalogs decreased to 10.4 million in 2014, which was 28.8% less than in the
prior year. In 2014, we mailed approximately 7.1 million catalogs in North America, a 24.5% decrease from last year and approximately 3.3
million catalogs in Europe, or 36.5% fewer than mailed in 2013.
Customer Service, Order Fulfillment and Support
We receive orders through the Internet, by telephone, electronic data interchange and by fax. We generally provide toll-
free telephone number
access for our customers in countries where it is customary. Certain domestic call centers are linked to provide telephone backup in the event of
a disruption in phone service.
Certain of our products are carried in stock, and orders for such products are fulfilled on a timely basis directly from our distribution centers,
typically within one day of the order. We utilize numerous sales and distribution facilities in North America and Europe. Orders are generally
shipped by third-
party delivery services. We maintain relationships with a number of large distributors in North America and Europe that also
deliver products directly to our customers.
We maintain a database of commonly asked questions for our technical support representatives, enabling them to respond quickly to similar
questions. We conduct regular on-
site training seminars for our sales representatives to help ensure that they are well trained and informed
regarding our latest product offerings.
Suppliers
We purchase substantially all of our products and components directly from manufacturers and large wholesale distributors. In 2014, two
vendors accounted for 10% or more of our purchases –
one vendor was 12.6%, the other vendor was 11.6%. In 2013, one vendor accounted for
13.9% of our purchases and in 2012, no vendor accounted for 10% or more of our purchases. The loss of these vendors, or any other key
vendors, could have a material adverse effect on us.
Table of Contents
North America
Europe
http://biz.tigerdirect.com
www.misco.co.uk
www.tigerdirect.com
www.misco.de
www.tigerdirect.ca
www.misco.fr
www.tigerdirect.pr
www.misco.nl
www.infotelusa.com
www.misco.it
www.globalcomputer.com
www.misco.es
www.globalgoved.com
www.misco.se
www.globalindustrial.com
www.misco.at
www.globalindustrial.ca
www.misco.ch
www.globalindustrial.mx
www.misco.be
www.nexelwire.com
www.misco.ie
www.inmac
-
wstore.com
www.miscosolutions.nl