Overstock.com 2009 Annual Report Download - page 14

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Table of Contents
aggregated classified ad listings. Revenue from the real estate business is included in the fulfillment partner segment.
International business
We began selling products through our Website to customers outside the United States in late August 2008. As of December 31, 2009, we were selling to
customers in 58 countries. We do not have operations outside the United States, and are using 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.
O.biz
In October 2009, we introduced O.biz, a website where customers and businesses can shop for bulk and business related items, offering manufacturers,
distributors and other retailers an alternative sales channel for liquidating their inventory. Revenue generated from our O.biz website is included in either
direct or fulfillment partner revenue, depending on whether the product is shipped from our warehouses or from a fulfillment partner.
Manufacturer, Supplier and Distribution Relationships
It is difficult to establish closeout buying relationships with manufacturers. Trust and experience gained through past interactions are important. 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: Shopping, Auctions, Cars, Real Estate, and Community. The Shopping section is organized into eleven
main departments: Furniture, Home & Garden, Bedding & Bath, Clothing & Shoes, Jewelry, Watches, Electronics, Sports, Books & Media, Worldstock and
More.
Each of these departments has multiple categories that more specifically define the products offered within that department. For 2007, 2008 and 2009,
the percentages of gross sales contributed by similar classes of products were as follows:
Product class 2007 2008 2009
Home and garden(1) 44% 50% 53%
Jewelry, watches, clothing and accessories 25% 24% 24%
BMMG(2), electronics and computers 23% 18% 14%
Other 8% 8% 9%
Total 100% 100% 100%
Home and garden includes home décor, bedding, bath, furniture, house wares, garden, patio and other related products.
BMMG stands for "Books, Music, Movies and Games."
(1)
(2) 11