Overstock.com 2014 Annual Report Download - page 8
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Table of Contents
For the years ended December 31, 2014, 2013 and 2012, the percentages of sales contributed by similar classes of products were as follows:
Home and garden(1)
Furniture
32%
31%
27%
Home decor
18%
17%
15%
Other
24%
24%
24%
Total home and garden
74%
72%
66%
Jewelry, watches, clothing and accessories
12%
13%
16%
BMMG, electronics and computers
4%
4%
6%
Other
10%
11%
12%
Total
100%
100%
100%
(1) Home and garden includes furniture, home decor, garden and patio, kitchen and dining, bedding, 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, print ads, and event sponsorships.
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 Website 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 other data centers which we use for backups, redundancy,
development, testing, disaster recovery, 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;
• website functionality on mobile devices;
• brand recognition; and
• brand reputation.
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
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