Overstock.com 2009 Annual Report Download - page 57

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Table of Contents
obligor for the majority of these sales transactions and we record revenue from the majority of these sales transactions on a gross basis. Our use of the term
"partner" or "fulfillment partner" does not mean that we have formed any legal partnerships with any of our fulfillment partners. We currently have fulfillment
partner relationships with approximately 1,250 third parties which post approximately 161,000 non-BMMG products, as well as most of the BMMG products,
on our Website. Our revenue from sales on our shopping site from both the direct and fulfillment partner businesses is recorded net of returns, coupons and
other discounts.
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.
Unless otherwise indicated or required by the context, the discussion herein of our financial statements, accounting policies and related matters, pertains
to the Shopping section of our Website and the O.biz section of our website and not necessarily to the much smaller Auctions, Cars or Real Estate sections of
our Website.
Consignment
In September 2009, we began offering a consignment service to suppliers where the suppliers' merchandise is stored in and shipped from our leased
warehouses. We pay the consignment supplier upon sale of the consigned merchandise to the consumer. Revenue from our consignment service business is
included in the fulfillment partner segment.
Auctions business
We operate an online auction service as part of our Website. Our auction tab 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 site on our auction site, and for these sales, we record the revenue on a gross basis. Revenue from our auction business is included
in the fulfillment partner 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.
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. Advertising 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
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