Overstock.com 2008 Annual Report Download - page 9

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Table of Contents
department) on our Website. Our revenue from sales from both the direct and fulfillment partner businesses is recorded net of returns,
coupons and other discounts.
Seasonality
Both direct and fulfillment partner revenues are seasonal, with revenues historically being the highest in the fourth quarter, which
ends December 31, reflecting higher consumer holiday spending. We anticipate this will continue in the foreseeable future.
Auctions business
We operate an online auction service as part of our Website. Our auction service allows sellers to list items for sale, buyers to bid
on items of interest, and users to browse through listed items online. We record only our listing fees and commissions for items sold as
revenue. From time to time, we also sell items returned from our shopping business through our auction service, and for these sales,
we record the revenue on a gross basis. Revenue from our auction business is included in the fulfillment partner segment, as it is not
significant enough to segregate as a segment.
Car listing business
We operate an online site for listing cars for sale as a part of our Website. The car listing service allows sellers to list vehicles for
sale and allows buyers to review vehicle descriptions, post offers to purchase, and provides the means for purchasers to contact sellers
for further information and negotiations on the purchase of an advertised vehicle. Revenue from our car listing business is included in
the fulfillment partner segment, as it is not significant enough to segregate as a segment.
Real Estate listing business
We operate an online site for listing real estate for sale as a part of our Website. The real estate listing service allows customers to
search active listings across the country. Listing categories include foreclosures, live and on-line auctions, for sale by owner listings,
broker/agent listings and numerous aggregated classified ad listings. Revenue from the real estate business is included in the
fulfillment partner segment, as it is not significant enough to segregate as a segment.
International business
We began selling products through our website to customers outside the United States in late August 2008. The initial launch
included Canada and 33 European countries, including the U.K. and Germany. We do not have operations outside the United States,
and are utilizing a U.S. based third party to provide logistics and fulfillment for all international orders. Revenue generated from our
international business is included in either direct or fulfillment partner revenue, depending on whether the product is shipped from our
warehouses or from a fulfillment partner.
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:
Anne Klein Joseph Abboud RCA
Bissell JVC Samsonite
Blue Ridge Home Fashions Kodak Seiko
Broyhill Movado Simon & Schuster
Canon Novica Sony
Charles David Panasonic Steve Madden
Drexel Heritage Philips Thomasville
Dyson Random House Toshiba
Fuji
Wenger
Hewlett-Packard
Hoover
Hunter Fan
7