Overstock.com 2011 Annual Report Download - page 50

Table of Contents
our belief that we can successfully offer and sell a constantly changing mix of products and services.
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 Annual Report on
Form 10-K for the year ended December 31, 2011, 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.
These forward-looking statements speak only as of the date of this report and, except as required by law, we undertake no obligation to update forward-
looking statements to reflect events or circumstances occurring after the date of this report.
Introduction
We are an online retailer offering discount brand name, 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 are also
a channel through which customers can purchase cars, insurance and travel products and services. We sell advertising. We also sell hundreds of thousands of
best seller and current run books, magazines, CDs, DVDs and video games ("BMMG"). We sell these products and services through our Internet websites
located at www.overstock.com, www.o.co and www.o.biz ("Website"). Although our three websites are located at different domain addresses, the technology
and equipment and processes supporting the three websites and the process of order fulfillment described herein are the same for all three websites.
Our company, based in Salt Lake City, Utah, was founded in 1997. We launched our initial 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.
As used herein, "Overstock," "Overstock.com," "O.co," "we," "our" and similar terms include Overstock.com, Inc. and its subsidiaries, unless the context
indicates otherwise.
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
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