Overstock.com 2010 Annual Report Download - page 9

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Table of Contents
We also earn advertisement revenue derived from our cars and real estate listing businesses. Revenue from the auctions, cars and real estate businesses is
included in the fulfillment partner segment on a net basis.
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, and 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.
Revenue generated from our O.biz and Eziba.com websites is included in either direct or fulfillment partner revenue, depending on whether the product is
shipped from our warehouses or from a fulfillment partner.
Generally, we require verification of receipt of payment, or authorization from credit card or other payment vendors whose services we offer to our
customers (such as PayPal and BillMeLater), before we ship products to consumers or business purchasers. From time to time we grant credit to our business
purchasers with normal credit terms (typically 30 days). For sales in our fulfillment partner business, we generally receive payments from our customers
before our payments to our suppliers are due.
Manufacturer, Supplier and Distribution Relationships
To date, we have not entered into contracts with manufacturers or other suppliers that guarantee the availability of merchandise for a set duration. Our
manufacturer and supplier relationships are based on historical experience with manufacturers and other suppliers 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 other suppliers 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 19
main departments: Home & Garden, Furniture, Bedding & Bath, Clothing & Shoes, Electronics, Jewelry, Watches, Sports and Outdoors, Books Media
Music & Games, Luggage, Health & Beauty, Baby, Crafts & Sewing, Office, Gifts & Flowers, Toys & Hobbies, Pets, Worldstock Fair Trade, and Main Street
Revolution. Worldstock Fair Trade is our socially-responsible, online marketplace through which artisans in the United States and around the world can sell
their products and gain access to a broader market. Main Street Revolution is our marketplace that enables small and minority-owned businesses to offer their
products to a mass audience by selling on our websites.
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