Overstock.com 2012 Annual Report Download - page 12
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Table of Contents
We use a variety of methods to target our consumer audience, including online campaigns, such as advertising through portals, keywords, search
engines, affiliate marketing programs, social coupon websites, banners, e-mail, direct mail and viral and social media campaigns. We also do brand
advertising through television, radio, and print ads. We generally hire third parties to develop our campaigns and advertising.
We are committed to providing superior customer service. We staff our customer service department with dedicated in-house and outsourced
professionals who respond to phone, instant online chat and e-mail inquiries on products, ordering, shipping status, returns and other areas of customer
inquiry.
We use our internally developed Websites and a combination of proprietary technologies and commercially available licensed technologies and
solutions to support our operations. We use the services of multiple telecommunications companies to obtain connectivity to the Internet. Currently, our
primary computer infrastructure is located in a co-location facility in Salt Lake City. We also have a second data center near our corporate headquarters
which we use primarily for backups, redundancy, development, testing, and our corporate systems infrastructure.
Internet retail is intensely competitive and has relatively low barriers to entry. We believe that competition in this industry is based predominantly
on:
•price;
•product quality and selection;
•shopping convenience;
•website organization and load speed;
•order processing and fulfillment;
•order delivery time;
•customer service; and
•brand recognition.
We compete with other online retailers, traditional retailers and liquidation "brokers," some of which may specifically adopt our methods and target
our customers. We currently or potentially compete with a variety of companies that can be divided into several broad categories:
•liquidation e-tailers;
•online general retailers with discount;
•private sale sites;
•online specialty retailers; and
•traditional general merchandise and specialty retailers and liquidators which also have an online presence.
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