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News Stories Friday, November 10, 2006   
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Callaway Golf launches new online venture with retailers

Callaway Golf Co. has launched an online store for direct-to-consumer sales of new golf equipment and apparel that will be fulfilled by retailers of the company’s products. Previously, Callaway sold only used Callaway products online through CallawayGolfPre-Owned.com.

The new site—Shop.Callaway.Golf.com—features the complete line-up of official Callaway Golf and Odyssey products, including drivers, fairway woods, hybrids, irons, golf balls, footwear, eyewear, apparel and accessories. The web site product offering is backed by the extensive inventories maintained by authorized retailers and Callaway Golf. Consumers also can access the site through the company’s main site at CallawayGolf.com.

When consumers make a purchase, retailers are notified of the order at a user-authenticated and encrypted site. Product prices are set by Callaway. Retailers then can make an offer to fulfill the order.

Callaway uses an algorithm to determine which retailer can most efficiently fulfill the order. The algorithm takes into account such factors as geographic proximity and inventory availability. The selected retailer then ships the product directly to the consumer. Callaway asks the retailer to ship the item within 24 hours. Callaway pays the retailers twice a month based on the orders fulfilled.

“Some of our retailers already have strong Internet web sites, and Shop.CallawayGolf.com will provide those retailers with an additional online channel that can generate new business,” says Joe Urzetta, senior vice president of U.S. sales. “For most of our retailers—including most of the vast network of green grass golf professionals—who do not currently have Internet capability, Shop.CallawayGolf.com provides them with a presence on the web without the technological, marketing and customer service costs associated with e-commerce.”

CallawayGolfPreowned.com and Shop.CallawayGolf.com are operated by the company’s subsidiary Callaway Golf Interactive, No. 224 in the Internet Retailer Top 500 Guide to Retail Web Sites.

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