• The Wall Street Journal (subscription required), Wednesday, November 8, 2006 11 AM

Callaway Golf Co. is finally moving into direct-to-consumer online sales, but it will do so by fulfilling orders through brick-and-mortar retailers that stock the company's gear. Golf equipment is widely available online through sporting-goods and other chains, but most manufacturers have avoided direct online sales for fear of alienating retail partners. The new Web site will sell nearly the entire line of Callaway products, including merchandise from company subsidiaries, like Top-Flite and Odyssey.

Here's how it works: When a consumer decides to purchase a Big Bertha driver on Callaway's Web site, retail shops are notified of the order through a user-authenticated and encrypted site. Several retailers may offer to fill the order. Callaway then uses a program to determine which retailer will get the sale, based on criteria such as proximity to the consumer and inventory stock. Retailers are asked to ship the products within 24 hours after being assigned the order.

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