SEC Filings Section 16 Filings Only
 
PFSWEB INC filed this S-1/A on 11/30/1999.
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receipt methods. Our systems provide the ability for both our clients and their
customers to track the status of orders at any time. Our services are
transparent to our clients' customers and are seamlessly integrated with our
clients' internal systems and Web sites. By synchronizing our order management
technology with our clients' internal systems and Web sites, we can capture and
provide critical customer information, including:
 
     - statistical measurements critical to creating a quality customer
       experience, including real-time order status, order exceptions, back
       order tracking, the ratio of customer inquiries to purchases, average
       order sizes and order response time;
 
     - detailed marketing information about what was sold and to whom it was
       sold, including by location and preference; and
 
     - Web traffic reporting of the number of visits ("hits") received, what
       areas of the Web site were visited, and what customers asked for on the
       Web site.
 
     Customer Care Services. We believe that an important feature of e-commerce
is the ability of the customer to talk to a live customer service
representative. Our experience is that about 81 percent of consumers tell us
that they visited the Web location for information, but only 22 percent of those
consumers chose to order in that manner. Our customer care services utilize
features that integrate voice, e-mail, data and Internet chat communications to
respond to and handle customer inquiries. We currently answer over 10,000
customer calls per day with 95% answered in under 30 seconds, with an average
speed of answer of 12 seconds and less than 1% of calls abandoned. Our customer
care representatives answer questions in our clients' name regarding orders,
shipping, billing, returns and product information as well as a variety of other
questions. Our customer care center automatically identifies each customer
request and routes it to the available customer care representative who is
specially trained in the client's business and products. Our customer care
centers are designed so that our customer care representatives can handle many
different clients and products, thereby creating economy of scale benefits for
our clients. Our advanced technology also enables our representatives to inform
customers of other products and sales opportunities for our clients.
 
     Billing Services. We offer secure credit card processing for our clients,
both directly on-line from their Web site as well as through our customer care
center. Our credit card processing services offer real-time confirmation of
credit card authorization while the customer is in the shopping-cart checkout
process or talking to a customer care representative. We are able to calculate
sales tax, if applicable, for numerous taxing authorities and on a variety of
products. We provide customized computer generated invoices in our clients'
names so that our services remain transparent to the customer. We also assist
our clients in business-to-business accounts receivable management and
collection in accordance with their procedures and guidelines.
 
     Information Management. We have the ability to communicate with and
transfer information to and from our clients through a wide variety of
technologies, including real-time data interfaces, file transferring and
electronic data interchange. Our systems are designed to capture, store and
electronically forward to our clients critical information regarding customer
inquiries and orders, product shipments, inventory levels, product returns and
other information. We maintain for our clients detailed product master files
that can be seamlessly integrated with their Web sites. Our systems are capable
of providing our clients with customer and order information for use in
analyzing sales and marketing trends and introducing new products. We also offer
customized reports or data analyses based upon specific client needs to assist
them in their budgeting and business decision process.
 
     Distribution Services. An integral part of our transaction management
services is the warehousing and distribution of inventory owned by our clients.
We currently have over one million square feet of warehouse space to store and
process our clients' inventory. We receive client inventory in our distribution
center, verify shipment accuracy, unpack, inspect for damage
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