Expanding upon its proven approach to manufacturing for retailers across the globe, MerchSource, a leading supplier of consumer merchandise, has launched an innovative way for retail clients to offer more than just products to their customers. After more than six years of helping national retail chains, MerchSource today announced the results of their inaugural “Joy of Giving” campaign with Internet retailer Overstock.com ® (Nasdaq:OSTK) (www.overstock.com), which was created as a means of further connecting businesses with their local communities while growing consumer traffic.
Broadening its alliance with Overstock.com, MerchSource powered the online retailer’s first-ever holiday philanthropy partnership program with the U.S. Marine Corps Toys for Tots Foundation, collecting more than $250,000 worth of toys in one month. The campaign enabled consumers to purchase toys, gifts and electronics from Overstock.com and then donate those products directly to Toys for Tots, giving consumers yet another reason to visit Overstock.com for their holiday shopping needs. Items purchased for the program were then shipped by MerchSource and Overstock.com to areas affected by Hurricane Katrina, where local Toys for Tots representatives distributed them to families for the holidays.
In addition to overseeing all product shipments, MerchSource and Overstock.com took the program one step further by making an additional monetary donation to the Toys for Tots Foundation in the amount of approximately $30,000.
How the Program Works
- Overstock.com designated 30 of MerchSource’s popular toy and gift products, ranging from arts and crafts sets to remote control cars and telescopes, which consumers could purchase and donate directly to the “Joy of Giving” campaign.
- In just one month, more than 5,600 MerchSource products were purchased from Overstock.com for Toys for Tots.
- Overstock.com’s total holiday toy sales reached more than $1,500,000 with approximately 47,314 toys sold (A 13 percent increase from the 2005 total of approximately 41,000 toys).
- The “Joy of Giving” program resulted in more than 200,000 additional site hits for Overstock.com from visitors looking to make a donation through the site for Hurricane Katrina victims.
“This opportunity has taken our partnership with MerchSource to new heights. Beyond providing us with innovative products at unbeatable price points, they’re helping us drive traffic by building long-term credibility among our customer base,” said Patrick Byrne, CEO of Overstock.com. “Our hope was to create a way in which consumers could easily help children and families in need, and we’re off to a phenomenal start with nearly 6,000 items purchased and donated from the site in our inaugural year.”
Through innovative projects like the “Joy of Giving” campaign, MerchSource is changing the face of traditional retail partnerships and helping retailers extend their reach to new customer segments. With unmatched opening-level price points in each of its more than one dozen product categories, MerchSource provides retail partners with more options at better prices for their customers. By combining its unmatched service and high-value products with trusted, long-time nonprofit partners, MerchSource is able to benefit online retailers like Overstock.com with increased consumer traffic, while also providing a way for these retail partners to create a stronger presence within the communities they serve nationwide through a nonprofit project.
“Projects like the ‘Joy of Giving’ campaign are allowing us to expand the scope of services we can provide for our retail partners,” said MerchSource executive, Kirk Mclean. “This project has created a platform to combine our strength in providing high-value products at consumer-friendly prices with Overstock.com’s online presence for a meaningful cause that helps garner valuable exposure.”
About MerchSource
Established in 2000, MerchSource, LLC specializes in the design, development, and production of key consumer product lines and has become one of the largest vendors of high-quality, cross category merchandise in the country. With more than 25 years of experience in sourcing, manufacturing and shipping among MerchSource’s executive team, the company provides unmatched service for national retailers such as: The Sharper Image; JCPenney; BonTon; CVS; Rite Aid; Mervyns and Overstock.com. MerchSource has offices in Hong Kong, Shanghai and Guangzhou, and currently imports more than one million units of merchandise on a monthly basis to its five distribution facilities located in California, Texas, Georgia, Illinois and New Jersey. Adhering to the principle of offering a wide selection of high perceived value items at entry-level price points, MerchSource specializes in multiple product categories, ranging from electronics and toys to clothing, accessories and office supplies.
About Overstock.com
Overstock.com, Inc. is an online “closeout” retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ National Market System (Symbol: OSTK) and can be found online at http://www.overstock.com. Overstock.com is a registered trademark of Overstock.com, Inc. All other trademarks are the property of their respective companies.
In respect to Overstock.com, this press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the ability of the MerchSource software to improve or increase website traffic, build credibility with customers, or create for Overtsock.com a stronger community presence, as well as all such other risks as identified in Overstock.com’s Form 10-K for the year ended December 31, 2005, and all its subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in its projections or forward-looking statements.
