PFSweb is all in when it comes to outsourcing. The company is an international business process outsourcing (BPO) provider of e-commerce services. Through its End2End eCommerce platform, it offers such services as customer care, digital marketing, financial management, logistics and fulfillment, and order management. These services support both direct-to-consumer (DTC) and business-to-business (B2B) sales initiatives, from developing new products to implementing new business strategies. PFSweb serves major brand name companies across a range of industries, including apparel (Roots Canada), consumer goods (Procter & Gamble), cosmetics (L'Oréal), and electronics (Xerox).
PFSweb's operations fall into two main segments. Its PFSweb segment, which shares the same name as the company itself, is a BPO provider and operates as a service fee business. It derives revenue from services as it processes individual business transactions on its clients' behalf. Through its Business and Retail Connect segment, the company buys inventory from clients and resells that inventory to client customers.
The US is PFSweb's largest market. It makes a smaller portion of revenue from Canada and Europe (mainly Belgium). The company operates call centers in those countries, as well as in the Philippines.
The company's Business and Retail Connect segment accounted for $162.4 million in revenues in 2011, about 53% of revenues. Its PFSweb segment accounted for $142.8 million in revenues in 2011, around 47% of revenues. Meanwhile, the company's product revenue (customer sales) represented for $164.2 million in 2011 compared to $174.6, a decrease of $12.2 million. The decrease was attributed to lower sales and the euro currency conversion rates. Its service fee revenue accounted for $95.4 million in 2011 compared to $70.6 million in 2010, which was primarily due to an increase in service fees collected from existing and new customers.
The company sold its online discount retailer eCOST.com to PC Mall for $2.3 million in February 2011. – less