Overstock.com 2007 Annual Report Download - page 13

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Please find page 13 of the 2007 Overstock.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Each of these departments has multiple categories that more specifically define the products offered within that department. For example, the "Bedding"
department currently has the following product categories:
Memory foam Mattresses
Sheets Comforters
Blankets Down bedding
Duvet covers Pillows
Each category has several subcategories that further detail the product contained within. For example, under the "Down bedding" category, we have the
following subcategories:
Down comforters Down alternatives
Feather bed Down pillows
Down Comforter sets
Individual products can be accessed and viewed from the category or subcategory pages. These specific product pages include detailed product
descriptions, color photographs, pricing information and customer reviews.
The number of total products we offer has grown from less than 100 in 1999, to more than 63,000 non-BMMG products and almost 724,000 BMMG
products (books, magazines, CDs, DVDs, video cassettes and video games) as of December 31, 2007. 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.
Worldstock is our socially-responsible, online marketplace through which artisans in the United States and around the world can sell their products and
gain access to a broader market.
Fulfillment Operations
General. When customers place orders on our Website, orders are fulfilled either by a third-party fulfillment partner or directly from our warehouses in
Salt Lake City, Utah. We monitor all of these sources for accurate order fulfillment and timely shipment. We currently charge $2.95 per order for basic
ground shipping, but customers can choose from various expedited shipping services at their expense.
Payment Terms. Generally, we require verification of receipt of payment, or authorization from credit card or other payment vendors whose services
we offer to our customers (such as Paypal and BillMeLater), before we ship products to consumers or business purchasers. From time to time we grant credit
to our business purchasers with normal credit terms (typically 30 days).
Fulfillment for Direct Business. During 2007, we fulfilled approximately 25% of all orders through our leased warehouses in Salt Lake City, Utah. Our
warehouse staff generally shipped between 5,000 and 8,000 orders per day, and up to 34,000 orders per day during peak periods, using overlapping daily
shifts. We also process returns of direct and fulfillment partner merchandise in the Salt Lake City warehouses. Our warehouses store approximately 6,000
non-BMMG products offered on our Website. We operate the Salt Lake City warehouses with an automated warehouse management system that tracks the
receipt of inventory, distributes order-fulfillment assignments to warehouse workers and obtains rates for various shipping options to ensure low-cost
outbound shipping. Our Website relays orders to the warehouse management system throughout each day, and the warehouse management system in turn
confirms to our Website shipment of each order. Customers track the shipping status of their packages through links we provide on our Website.
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