Overstock.com 2010 Annual Report Download - page 50

Table of Contents
Furthermore, in some cases, you can identify forward-looking statements by terminology such as may, will, could, should, expect, plan, intend,
anticipate, believe, estimate, predict, potential or continue, the negative of such terms or other comparable terminology. These statements are only predictions.
Actual events or results may differ materially. In evaluating these statements, you should specifically consider the risks outlined in this Form 10-K, including
those described in Item 1A under the caption "Risk Factors." These factors may cause our actual results to differ materially from those contemplated by any
forward-looking statement. Except as otherwise required by law, we expressly disclaim any obligation to release publicly any update or revisions to any
forward-looking statements to reflect any changes in our expectations or any change in events, conditions or circumstances on which any of our forward-
looking statements are based. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
Introduction
We are an online retailer offering discount brand, non-brand name and closeout merchandise, including bed-and-bath goods, home décor, kitchenware,
furniture, watches and jewelry, apparel, electronics and computers, sporting goods, and designer accessories, among other products. We also sell hundreds of
thousands of best seller and current run books, magazines, CDs, DVDs and video games ("BMMG"). We sell these products through our Internet websites
located at www.overstock.com and www.o.co ("Website"). We also operate as part of our Website an online auctions business—a marketplace for the buying
and selling of goods and services—and online sites for listing cars and real estate for sale. In October 2009, we also launched O.biz, a website where
customers can shop for bulk and business related items. In August 2010, we introduced Eziba.com, a private sale website where members can shop exclusive
deals on the latest home décor products, furniture, jewelry, apparel and accessories from many leading brands. Although our four websites are located at
different domain addresses, the technology and equipment and processes supporting the Overstock.com Website and the process of order fulfillment described
herein are the same for all four websites.
Our company, based in Salt Lake City, Utah, was founded in 1997. We launched the Website in March 1999. Our Website offers our customers an
opportunity to shop for bargains conveniently, while offering our suppliers an alternative inventory liquidation or sales channel. We continually add new,
sometimes limited, inventory products to our Website in order to create an atmosphere that encourages customers to visit frequently and purchase products
before our inventory sells out. We sell products primarily in the United States, with a small amount of products (less than 1% of sales) sold internationally.
Our Business
We deal primarily in discount, replenishable, and closeout merchandise and we use the Internet to aggregate both supply and demand to create an
efficient marketplace for selling these products. We provide manufacturers with a one-stop liquidation channel to sell both large and small quantities of
excess, closeout and replenishable inventory without disrupting sales through traditional channels, which can result in weaker pricing and decreased brand
strength. The merchandise offered on our Website is from a variety of sources including well-known, brand-name manufacturers. We have organized our
shopping business (sales of product offered through the Shopping Section of our Website) into two principal segments—a "direct" business and a "fulfillment
partner" business. We currently offer approximately 197,000 non-BMMG products in 19 major departments, and approximately 763,000 BMMG products.
Consumers and businesses are able to access and purchase our products 24 hours a day from the convenience of a computer, Internet-enabled mobile
telephone or other Internet-enabled devices. Our team of customer service representatives assists customers by telephone, instant online chat and e-mail.
Nearly all of our sales are to customers located in the United States. Less than 1% of
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