Rewards program helps drive Q3 growth at

BY Dan Berthiaume

Salt Lake City – reported year-over-year gains in net income and revenue during the third quarter of fiscal 2013, which the company partially attributed to growing participation in its Club O paid loyalty program.

Net income increased 31% from $2.7 million to $3.5 million, while revenue grew 18% from $255.4 million to $301.4 million. The growth in net revenue was primarily due to a 16% increase in average order size, from $147 in third quarter 2012 to $170 in third quarter 2013, coupled with a 2% increase in orders.

The company also said Club O customers are spending more and a new warehouse is enhancing delivery operations.

"In Club O, we built what we believe is the best, most generous loyalty program on the Internet, with free shipping, 5-25% rewards on products, and books priced at Amazon prices but with 15% rewards, all for $19.95 per year,” said Patrick Byrne, chairman and CEO of “Our Club O customers are rewarding us with their business. In addition, with the opening of our new warehouse in Pennsylvania, we are now providing even faster delivery to our customers on the east coast."


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