Overstock.com 2013 Annual Report Download - page 8
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Table of Contents
For the years ended December 31, 2013, 2012 and 2011, the percentages of gross revenues contributed by similar classes of products were as
follows:
Home and garden(1)
72%
66%
58%
Jewelry, watches, clothing and accessories
13%
16%
20%
BMMG, electronics and computers
4%
6%
10%
Other
11%
12%
12%
Total
100%
100%
100%
(1) Home and garden includes furniture, home decor, kitchen and dining, bedding, garden and patio, home improvement, housewares and
other related products.
We use a variety of methods to target our consumer audience, including online campaigns, such as advertising through keywords, product listing
ads, display ads, search engines, affiliate marketing programs, social coupon websites, portals, banners, e-mail, direct mail and viral and social media
campaigns. We also do brand advertising through television, radio, and print ads.
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 discount general retailers;
•private sale sites;
•online specialty retailers; and
•traditional general merchandise and specialty retailers and liquidators, some of which also have an online presence.
Many of our current and potential competitors have greater brand recognition, longer operating histories, larger customer bases and significantly
greater financial, marketing and other resources than we do. Further, any of them may enter into strategic or commercial relationships with larger, more
established and well-financed companies, including exclusive distribution arrangements with our vendors or service suppliers that could deny us access to
key products or needed services, or acquisitions of our suppliers or service providers, having the same effect. Many of them do or could devote greater
resources to
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