Overstock.com 2008 Annual Report Download - page 10

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Table of Contents
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 the terms under which products are sold through our Website.
Products
Online Products
Our website is organized into five main sections, namely: Shopping, Auctions, Cars, Real Estate, and Community. The Shopping
section is organized into eleven main departments:
Furniture At Home
Bedding Clothing & Shoes
Jewelry Watches
Electronics Sports
Books, etc. Worldstock
Other
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
Down pillows Featherbeds
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.
For 2006, 2007 and 2008, the percentages of gross sales contributed by similar classes of products were as follows:
Product class 2006 2007 2008
Home and garden(1) 42% 44% 50%
Jewelry, watches, clothing and accessories 27% 25% 24%
BMMG(2), electronics and computers 23% 23% 18%
Other 8%8%8%
Total 100%100%100%
(1) Home and garden includes home décor, bedding, bath, furniture, house wares, garden, patio and other related products.
(2) BMMG stands for "Books, Music, Movies and Games."
The number of total products we offer has grown from less than 100 in 1999, to more than 201,000 non-BMMG products and
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