Overstock.com 2004 Annual Report Download - page 11

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in promoting this program. We have added a number of suppliers specific to various industry verticals, such as florist supplies, restaurant supplies,
and office supplies.
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.
AOL Time Warner Mai Random House
Bissell Meyer Corporation RCA
Blue Ridge Home Fashions Movado Samsonite
Cuisinart Nicole Miller Seiko
Fuji Novica Simon & Schuster
Hewlett-Packard Linon Home Decor Sony
Kelty Panasonic Swiss Army
Kenneth Cole Philips Vera Wang
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.
Fulfillment Partner Business. In our fulfillment partner business, we sell merchandise of other retailers, cataloguers or manufacturers ("fulfillment
partners") through our Websites. We currently have fulfillment partner relationships with approximately 380 third parties which post approximately 40,000
non-BMV products and all of our current travel offerings on 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 relationships, 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 continued with our national television and radio branding campaign throughout 2004, and plan to develop it
further in 2005. We develop our branding campaigns internally, and we believe that doing so is cost-effective.
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