The Company utilizes automated interfaces for sorting and organizing its orders
to enable it to achieve the most rapid and economic purchase and delivery terms
possible. The Company’s proprietary software selects the orders that can be filled
quickly via electronic interfaces with vendors, and forwards remaining orders to
its special order group. Under the Company’s arrangements with its distributors,
electronically ordered books often are shipped by the distributor within hours of
receipt of an order from Amazon.com. The Company has developed customized
information systems and dedicated ordering personnel that specialize in sourcing
hard-to-find books. The Company currently processes all sales through its
warehouse in Seattle.18