Overstock.com 2013 Annual Report Download - page 48
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Table of Contents
The following table sets forth our results of operations expressed as a percentage of total net revenue for 2012, 2011 and 2010:
Revenue, net
Direct
14.1%
15.5 %
19.2%
Fulfillment partner
85.9
84.5
80.8
Total net revenue
100.0
100.0
100.0
Cost of goods sold
Direct
12.8
14.2
17.2
Fulfillment partner
69.2
68.8
65.4
Total cost of goods sold
81.9
83.0
82.6
Gross profit
18.1
17.0
17.4
Operating expenses:
Sales and marketing
5.8
5.9
5.6
Technology
6.0
6.4
5.3
General and administrative
5.2
6.4
5.1
Restructuring
—
—
(0.1)
Total operating expenses
17.0
18.7
16.0
Operating income (loss)
1.1
(1.7)
1.4
Interest income
—
—
—
Interest expense
(0.1)
(0.2)
(0.3)
Other income (expense), net
0.3
—
0.2
Income (loss) before income taxes
1.3
(1.9)
1.3
Provision (benefit) for income taxes
—
—
—
Net income (loss)
1.3%
(1.9)%
1.3%
The following table reflects our net revenue for the years ended December 31, 2012 and 2011 (in thousands):
Revenue, net
Direct
$155,516
$163,609
$(8,093)
(4.9)%
Fulfillment partner
943,773
890,668
53,105
6.0 %
Total revenue, net
$1,099,289
$1,054,277
$ 45,012
4.3 %
The primary reason for the increase in total revenue for the year ended December 31, 2012 was an increase of 10% in average order size, from $123
to $135, primarily due to a sales mix shift into more home and garden products, partially offset by a decrease of 3% in customer orders due to lower
conversion rates compared to last year.
The primary reason for the decrease in direct revenue for the year ended December 31, 2012 was a shift in sales mix, particularly in Apparel and
Shoes, from a direct inventory-based model to a fulfillment partner-based model to reduce exposure from seasonal inventory and mark downs; partially offset
by an increase in sales of home and garden products.
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