Overstock.com 2011 Annual Report Download - page 52

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Table of Contents
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 our customer.
Revenue from our consignment service business is less than 1% of total net revenue and is included in the fulfillment partner segment.
Other businesses
We operate an online car listing service as 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. We also earn advertisement revenue derived from our cars business. Revenue from the cars businesses is included in the fulfillment
partner segment on a net basis.
We operate an online site, O.biz, a website where customers and businesses can shop for bulk and business related items, while offering manufacturers,
distributors and other retailers an alternative sales channel for liquidating their inventory. Revenue generated from our O.biz is included in either direct or
fulfillment partner revenue, depending on whether the product is shipped from our warehouses or from a fulfillment partner.
In April 2011, we again began operating a travel shopping site as part of our Website where customers can purchase discount travel packages, flights,
rental cars and other travel-related products and services. We also earn advertisement revenue from our travel business. Revenue from the travel businesses is
included in the fulfillment partner segment on a net basis.
In July 2011, we began operating an insurance shopping service as part of our Website where customers can shop for auto and home insurance and
compare quotes from various insurance providers. We also earn advertisement revenue from our insurance business. Revenue generated from our insurance
shopping site is included in the fulfillment partner segment on a net basis.
Prior to July 2011, we operated an online auction service as part of our Website. In July 2011, we removed our Marketplace tab for auctions from our
Website and no longer provide auction services. The financial results and related assets of the online auction service were not significant to our business. Our
Marketplace tab allowed sellers to list items for sale, buyers to bid on items of interest, and users to browse through listed items online. We recorded only our
listing fees and commissions for items sold as revenue. From time to time, we also sold items returned from our shopping business through our auction
service, and for these sales, we recorded the revenue on a gross basis. Revenue from the auctions is included in the fulfillment partner segment.
Prior to June 2011, we operated an online site for listing real estate for sale as part of our Website. In June 2011, we removed our online site for listing
real estate for sale from our Website and no longer provide these real estate listing services. The financial results and related assets of the online site for listing
real estate for sale were not significant to our business. The real-estate listing service allowed customers to search active listings across the country. Revenue
from the real estate business is included in the fulfillment partner segment on a net basis.
Prior to June 2011, we operated Eziba.com, a private sale website featuring home décor products, jewelry, apparel and accessories from many leading
brands. In June 2011, we turned off the Eziba.com website; however, we continue to sell the type of products that were listed on Eziba.com through our
websites, O.co and Overstock.com.
Revenue from our other businesses is less than 1% of total net revenues.
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