Overstock.com 2011 Annual Report Download - page 7

Table of Contents
PART I
ITEM 1. BUSINESS
The following description of our business contains forward-looking statements relating to future events or our future financial or operating performance
that involve risks and uncertainties, as set forth above under "Special Note Regarding Forward-Looking Statements." Our actual results could differ
materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth in Section 1A under the heading
"Risk Factors" and elsewhere in this Form 10-K.
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 principal segments—a "direct" business and a "fulfillment
partner" business. We currently offer approximately 251,000 non-BMMG products and approximately 637,000 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. We also derive revenue from other
businesses advertising products or services on our Website. We have car, insurance and travel listing businesses through which cars, insurance and travel-
related products and services may be purchased from vendors. Nearly all of our sales are to customers located in the United States. During the years ended
December 31, 2011 and 2010 no single customer accounted for more than 1% of our total revenue.
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