Pfsweb (PFSW) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 05, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Trading Symbol	PFSW
Entity Registrant Name	PFSWEB INC
Entity Central Index Key	1,095,315
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,031,738

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 15,721	$ 18,128
Restricted cash	374	521
Accounts receivable, net of allowance for doubtful accounts of $446 and $447 at June 30, 2015 and December 31, 2014, respectively	42,961	59,126
Inventories, net of reserves of $635 and $768 at June 30, 2015 and December 31, 2014, respectively	10,333	10,534
Other receivables	4,565	5,638
Prepaid expenses and other current assets	4,551	7,103
Total current assets	78,505	101,050
PROPERTY AND EQUIPMENT, net	23,912	26,604
IDENTIFIABLE INTANGIBLES, net	1,813	2,170
GOODWILL	10,322	8,366
OTHER ASSETS	2,101	2,556
Total assets	116,653	140,746
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	5,717	6,850
Trade accounts payable	27,839	38,842
Deferred revenue	6,806	9,098
Accrued expenses	24,124	28,473
Total current liabilities	64,486	83,263
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion	3,739	4,062
DEFERRED REVENUE	4,481	5,355
DEFERRED RENT	4,561	4,870
OTHER LIABILITIES	368	3,091
Total liabilities	$ 77,635	$ 100,641
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value; 35,000,000 shares authorized; 17,511,982 and 17,047,093 shares issued at June 30, 2015 and December 31, 2014, respectively; and 17,478,515 and 17,013,622 outstanding at June 30, 2015 and December 31, 2014, respectively	$ 17	$ 17
Additional paid-in capital	132,631	129,457
Accumulated deficit	(93,519)	(89,926)
Accumulated other comprehensive income	14	682
Treasury stock at cost, 33,467 shares	(125)	(125)
Total shareholders’ equity	39,018	40,105
Total liabilities and shareholders’ equity	$ 116,653	$ 140,746

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 446	$ 447
Inventories reserves	$ 635	$ 768
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	17,511,982	17,047,093
Common stock, shares outstanding	17,478,515	17,013,622
Treasury stock, shares	33,467	33,467

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES:
Product revenue, net	$ 13,658	$ 18,120	$ 30,312	$ 39,842
Service fee revenue	39,075	27,384	75,783	54,982
Pass-through revenue	10,443	8,539	20,927	16,448
Total revenues	63,176	54,043	127,022	111,272
COSTS OF REVENUES:
Cost of product revenue	12,911	17,039	28,619	37,555
Cost of service fee revenue	26,645	19,160	51,800	38,380
Cost of pass-through revenue	10,443	8,539	20,927	16,448
Total costs of revenues	49,999	44,738	101,346	92,383
Gross profit	13,177	9,305	25,676	18,889
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES, including stock based compensation expense of $1,150 and $862 in the three months ended June 30, 2015 and 2014, respectively, and $1,954 and $1,656 in the six months ended June 30, 2015 and 2014, respectively.	14,676	11,485	28,290	22,507
Loss from operations	(1,499)	(2,180)	(2,614)	(3,618)
INTEREST EXPENSE, net	223	173	541	316
Loss from operations before income taxes	(1,722)	(2,353)	(3,155)	(3,934)
INCOME TAX EXPENSE	178	42	438	271
NET LOSS	$ (1,900)	$ (2,395)	$ (3,593)	$ (4,205)
NET LOSS PER SHARE:
Basic	$ (0.11)	$ (0.14)	$ (0.21)	$ (0.25)
Diluted	$ (0.11)	$ (0.14)	$ (0.21)	$ (0.25)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic	17,368	16,736	17,257	16,630
Diluted	17,368	16,736	17,257	16,630
COMPREHENSIVE LOSS:
Net loss	$ (1,900)	$ (2,395)	$ (3,593)	$ (4,205)
Foreign currency translation adjustment	238	(40)	(668)	(98)
TOTAL COMPREHENSIVE LOSS	$ (1,662)	$ (2,435)	$ (4,261)	$ (4,303)

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Stock based compensation expense	$ 1,150	$ 862	$ 1,954	$ 1,656

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,593)	$ (4,205)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	6,564	5,768
Gain on sale of fixed assets	20
Provision for doubtful accounts	16	78
Provision for excess and obsolete inventory	9	5
Deferred income taxes	39	39
Stock based compensation expense	1,954	1,656
Non-cash compensation expense	87
Changes in operating assets and liabilities:
Restricted cash	34	(32)
Accounts receivable	15,607	15,068
Inventories	109	400
Prepaid expenses, other receivables and other assets	3,854	(499)
Deferred rent	(282)	125
Accounts payable, deferred revenue, accrued expenses and other liabilities	(18,895)	(13,433)
Net cash provided by operating activities	5,523	4,970
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(1,946)	(2,925)
Acquisitions, net of cash acquired	(2,921)
Net cash used in investing activities	(4,867)	(2,925)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	1,189	788
Decrease (Increase) in restricted cash	112	(107)
Payments on capital lease obligations	(1,081)	(1,238)
Payments on debt, net	(2,212)	(606)
Net cash used in financing activities	(1,992)	(1,163)
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	(1,071)	(105)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(2,407)	777
CASH AND CASH EQUIVALENTS, beginning of period	18,128	22,418
CASH AND CASH EQUIVALENTS, end of period	15,721	23,195
Non-cash investing and financing activities:
Property and equipment acquired under long-term debt and capital leases	$ 1,637	$ 969

Overview and Basis of Presentat

Overview and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Overview and Basis of Presentation	1. OVERVIEW AND BASIS OF PRESENTATION PFSweb, Inc. and its subsidiaries are collectively referred to as the “Company”; “Supplies Distributors” refers to Supplies Distributors, Inc. and its subsidiaries; “Retail Connect” refers to PFSweb Retail Connect, Inc.; “REV” collectively refers to REV Solutions, Inc. and REVTECH Solutions India Private Limited; “LAL” refers to LiveAreaLabs, Inc., “Moda” refers to Moda Superbe Limited, and “PFSweb” refers to PFSweb, Inc. and its subsidiaries, excluding Supplies Distributors and Retail Connect. PFSweb Overview PFSweb is a global provider of omni-channel commerce solutions, including a broad range of technology, infrastructure and professional services, to major brand name companies and others seeking to optimize their supply chain and to enhance their online and traditional business channels and initiatives in the United States, Canada, and Europe. PFSweb’s service offerings include website design, creation and integration, digital agency and marketing, eCommerce technologies, order management, customer care, logistics and fulfillment, financial management and professional consulting. Supplies Distributors Overview Supplies Distributors and PFSweb operate under distributor agreements with Ricoh Company Limited and Ricoh USA, Inc., a strategic business unit within the Ricoh Family Group of Companies, (collectively hereafter referred to as “Ricoh”), under which Supplies Distributors acts as a distributor of various Ricoh products. The majority of Supplies Distributors’ revenue is generated by its sale of product purchased from Ricoh. Supplies Distributors has obtained financing to fund the working capital requirements for the sale of primarily Ricoh products. Pursuant to the transaction management services agreements between PFSweb and Supplies Distributors, PFSweb provides to Supplies Distributors transaction management and fulfillment services, such as managed web hosting and maintenance, procurement support, web-enabled customer contact center services, customer relationship management, financial services including billing and collection services, information management, and international distribution services. Supplies Distributors does not have its own sales force and relies upon Ricoh’s sales force and product demand generation activities for its sale of Ricoh products. Supplies Distributors sells its products in the United States, Canada and Europe. All of the agreements between PFSweb and Supplies Distributors were made in the context of a related party relationship and were negotiated in the overall context of PFSweb’s and Supplies Distributors’ arrangement with Ricoh. Although management believes the terms of these agreements are generally consistent with fair market values, there can be no assurance that the prices charged to or by each company under these arrangements are not higher or lower than the prices that may be charged by, or to, unaffiliated third parties for similar services. All of these transactions are eliminated upon consolidation. Acquisition of REV On September 3, 2014, Priority Fulfillment Services, Inc. (“PFS”), a wholly-owned subsidiary of PFSweb, acquired the outstanding capital stock of REV, which provides eCommerce website technical design, development and support services, enabling retailers, manufacturers and suppliers to optimize the customer experience across multiple channels. REV maintains operations in the United States and India. . The purchase agreement provides for As of June 30, 2015, the Company has recognized a total current liability of $1.7 million applicable to the 2015 REV Earn-out Payments which have a guaranteed minimum of $0.7 million and maximum of $1.8 million. The transaction was accounted for using the purchase method of accounting for business combinations and, accordingly, the assets acquired and liabilities assumed, including an allocation of purchase price, and the results of operations of REV have been included in the Company's consolidated financial statements since the date of acquisition. The following table summarizes the estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 765 Accounts receivable 1,753 Property and equipment 289 Identifiable intangibles 1,019 Other assets 16 Total assets acquired 3,842 Total liabilities assumed 655 Net assets acquired 3,187 Goodwill 2,756 Total purchase price $ 5,943 Purchase price for REV is as follows (in thousands): Number of shares of common stock issued 27,407 Multiplied by PFSweb Inc.'s stock price $ 10.95 Share consideration for settlement of performance-based contingent payments $ 300 Aggregate cash payments 4,254 Performance-based contingent payments (based on fair value at acquisition date) 1,389 Total purchase price $ 5,943 The excess of the purchase price over the fair value of the net identifiable assets acquired and liabilities assumed was allocated to goodwill. Total goodwill of $2.8 million, none of which is deductible for tax purposes, is not being amortized but is subject to an annual impairment test using a fair-value-based approach. The Company is amortizing the identifiable intangible assets acquired using a pattern in which the economic benefit of the assets are expected to be realized by the Company over their estimated remaining useful lives. There are no residual values for any of the intangible assets subject to amortization acquired during the REV acquisition. Definite lived intangible assets acquired in the REV acquisition consist of (in thousands): June 30, 2015 Estimated Fair Value Accumulated Net Carrying Useful Life at Acquisition Amortization Value from Non-compete agreements $ 94 $ (37 ) $ 57 1-3.5 years Leasehold 45 (15 ) 30 2.5 years Customer relationships 880 (233 ) 647 6 years Total definite lived intangible assets $ 1,019 $ (285 ) $ 734 Acquisition of LAL On September 22, 2014, PFS acquired the outstanding capital stock of LAL, which provides digital agency services including strategy, branding, website design, visual design, copywriting, interactive development and support services primarily to manufacturers and retailers. LAL operates in the United States. As of June 30, 2015, the Company has recognized a total current liability of $1.8 million applicable to the projected 2015 LAL Earn-out Payments with a maximum payment of $2.0 million. The transaction was accounted for using the purchase method of accounting for business combinations and, accordingly, the assets acquired and liabilities assumed, including an allocation of purchase price, and the results of operations of LAL have been included in the Company's consolidated financial statements since the date of acquisition. The following table summarizes the estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash $ 30 Accounts receivable, net 1,299 Property and equipment 253 Identifiable intangibles 1,290 Other assets 28 Total assets acquired 2,900 Total liabilities assumed 1,617 Net assets acquired 1,283 Goodwill 5,610 Total purchase price $ 6,893 Purchase price for LAL is as follows (in thousands, except share data): Number of shares of common stock issued 54,604 Multiplied by PFSweb Inc.'s stock price $ 9.96 Share consideration $ 544 Aggregate cash payments 4,950 Performance-based contingent payments (based on fair value at acquisition date) 1,399 Total purchase price $ 6,893 The excess of the purchase price over the fair value of the net identifiable assets acquired and liabilities assumed was allocated to goodwill. Total goodwill of $5.6 million, none of which is deductible for tax purposes, is not being amortized but is subject to an annual impairment test using a fair-value-based approach. The Company is amortizing the identifiable intangible assets acquired using a pattern in which the economic benefit of the assets are expected to be realized by the Company over their estimated remaining useful lives. There are no residual values for any of the intangible assets subject to amortization acquired during the LAL acquisition. Definite lived intangible assets acquired in the LAL acquisition consist of (in thousands): June 30, 2015 Estimated Fair Value Accumulated Net Carrying Useful Life at Acquisition Amortization Value from Acquisition Non-compete agreements $ 150 $ (32 ) $ 118 3.5 years Trade name 150 (50 ) 100 2.25 years Customer relationships 990 (234 ) 756 6 years Total definite lived intangible assets $ 1,290 $ (316 ) $ 974 Acquisition of Moda On June 11, 2015, PFS acquired the outstanding capital stock of Moda, an eCommerce system integrator and consultancy that provides unique digital experiences for fashion brands and retailers. Moda maintains primary operations in London. . The purchase agreement provides for (i) a further adjustment based on Moda’s shareholders’ equity balance as of the date of acquisition and (ii) The transaction was accounted for using the purchase method of accounting for business combinations and, accordingly, the assets acquired and liabilities assumed, including a preliminary allocation of purchase price, and the results of operations of Moda have been included in the Company's consolidated financial statements since the date of acquisition. The following table summarizes the unaudited estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 126 Accounts receivable 335 Property and equipment 27 Other assets 23 Total assets acquired 511 Total liabilities assumed 542 Net liabilities assumed (31 ) Goodwill and intangible assets 1,957 Total purchase price $ 1,926 The estimated purchase price for Moda is as follows (in thousands, except share data): Number of shares of common stock issued 16,116 Multiplied by PFSweb Inc.'s stock price $ 14.60 Share consideration $ 235 Aggregate cash payments 1,005 Performance-based contingent payments (based on fair value at acquisition date) 686 Total purchase price $ 1,926 Pro Forma Information The following table presents selected pro forma information, for comparative purposes, assuming the acquisitions of REV and LAL had occurred on January 1, 2014 (unaudited) and now include the impact of the acquisition related amortization of intangible assets (approximately $0.2 million per quarter), which were previously omitted (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2014 2014 Total revenues $ 58,239 $ 118,780 Net loss (1,934 ) (3,938 ) Basic and diluted net loss per share (0.12 ) (0.24 ) The unaudited pro forma information combines the historical unaudited consolidated results of the Company’s operations and REV’s and LAL’s operations for the three and six months ended June 30, 2014 giving effect to the acquisitions and related events as if they had been consummated on January 1, 2014. The unaudited pro forma total revenues and pro forma net loss are not necessarily indicative of the consolidated results of operations for future periods or the results of operations that would have been realized had the Company consolidated REV and LAL during the period noted. Moda did not meet the significance test requirements in order to be included in the pro forma presentation above. Definite Lived Intangible Asset Amortization The Company recognized $0.2 million and $0.5 million of amortization expense, related to the REV and LAL definite lived intangible assets in selling, general and administrative expenses in three and six months ended June 30, 2015, respectively. The estimated amortization expense for each of the next five years is as follows (in thousands): 2015 $ 951 2016 533 2017 345 2018 200 2019 138 Basis of Presentation The interim consolidated financial statements as of June 30, 2015, and for the three and six months ended June 30, 2015 and 2014, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are unaudited. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC. In the opinion of management and subject to the foregoing, the unaudited interim consolidated financial statements of the Company include all adjustments necessary for a fair presentation of the Company’s financial position as of June 30, 2015, its results of operations for the three and six months ended June 30, 2015 and 2014 and its cash flows for the six months ended June 30, 2015 and 2014. Results of the Company’s operations for interim periods may not be indicative of results for the full fiscal year.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues and selling, general and administrative expenses in these consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. These uncertainties are discussed in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 in the section entitled “Risk Factors.” Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s consolidated financial statements are fairly stated in accordance with U.S. GAAP, and provide a fair presentation of the Company’s financial position and results of operations. Revenue and Cost Recognition The Company derives revenue primarily from services provided under contractual arrangements with its clients or from the sale of products under its distributor agreements. The following revenue recognition policies define the manner in which the Company accounts for sales transactions. The Company recognizes revenue when persuasive evidence of a sales arrangement exists, product shipment or delivery has occurred or services are rendered, the sales price or fee is fixed or determinable, and collectability is reasonably assured. In instances where revenue is derived from sales of third-party vendor services, the Company records revenue on a gross basis when the Company is a principal to the transaction and net of costs when the Company is acting as an agent between the customer or client and the vendor. The Company considers several factors to determine whether it is a principal or an agent, most notably whether the Company is the primary obligor to the vendor or customer, has established its own pricing and has inventory and credit risks, if applicable. Product Revenue Activity Depending on the terms of the customer arrangement, Supplies Distributors recognizes product revenue and product cost either upon the shipment of product to customers or when the customer receives the product. Supplies Distributors permits its customers to return product for credit against other purchases, which include returns for defective products (that Supplies Distributors then returns to the manufacturer) and incorrect shipments. Supplies Distributors provides a reserve for estimated returns and allowances and offers terms to its customers that it believes are standard for its industry. Freight costs billed to customers are reflected as components of product revenue. Freight costs incurred are recorded as a component of cost of goods sold. Under its distributor agreements, Supplies Distributors bills Ricoh for reimbursements of certain expenses, including: pass-through customer marketing programs, including rebates and co-op funds; certain freight costs; direct costs incurred in passing on any price decreases offered by Ricoh to Supplies Distributors or its customers to cover price protection and certain special bids; the cost of products provided to replace defective product returned by customers; and certain other expenses as defined. Supplies Distributors records these reimbursable amounts as they are incurred as other receivables in the consolidated balance sheet with a corresponding reduction in either inventory or cost of product revenue. Supplies Distributors also records pass-through customer marketing programs as a reduction of both product revenue and cost of product revenue. Service Fee Revenue Activity The Company’s service fee revenue primarily relates to its distribution services, order management/customer care services, professional digital agency and technology services. The Company typically charges its service fee revenue on either a cost-plus basis, a percent of shipped revenue basis, on a time and materials, project or retainer basis for professional services, or a per transaction basis, such as a per item basis for fulfillment services or a per labor hour basis for web-enabled customer contact center services. Additional fees are billed for other services. The Company evaluates its contractual arrangements to determine whether or not they include multiple service elements. Revenue recognition is determined for the separate service elements of the contract in accordance with the requirements of Accounting Standards Codification 605, “Revenue Recognition.” A deliverable constitutes a separate unit of accounting when it has standalone value and there are no return rights or other contingencies present for the delivered elements. The Company allocates revenue to each element based on estimated selling price. Each of t he Company’s Distribution services relate primarily to inventory management, product receiving, warehousing and fulfillment (i.e., picking, packing and shipping) and facilities and operations management. Service fee revenue for these activities is recognized as earned, which is either (i) on a per transaction basis or (ii) at the time of product fulfillment, which occurs at the completion of the distribution services. Order management/customer care services relate primarily to taking customer orders for the Company’s clients’ products. These services also include addressing customer questions related to orders, as well as cross-selling/up-selling activities. Service fee revenue for this activity is recognized as the services are rendered. Fees charged to the client are on a per transaction basis based on either (i) a pre-determined fee per order or fee per telephone minutes incurred, (ii) a per dedicated agent fee, or (iii) are included in the product fulfillment service fees that are recognized on product shipment. Professional consulting and technology service revenues primarily relate to design, implementation, service and support of eCommerce platforms, website design and solutions and quality control for the Company’s clients. Additionally, the Company provides digital agency services that enable client marketing programs to attract new customers, convert buyers and increase website value. These fees are typically charged on either a per labor hour basis, or transaction basis, a dedicated resource model, a fixed price arrangement, or a percent of merchandise shipped basis. Service fee revenue for this activity is generally recognized as the services are rendered. The Company performs front-end set-up and integration services to support client eCommerce plaftorms and websites. When the Company determines that these front-end set-up and integration services do not meet the criteria for recognition as a separate unit of accounting, the Company defers the start-up fees received and the related costs, and recognizes them over the contract term, which the Company believes approximates the performance period. When the Company determines that these front-end set-up and integration services do meet the criteria for recognition as a separate unit of accounting, for time and material arrangements, the Company recognizes revenue as services are rendered and costs as they are incurred. For fixed-price arrangements, if reasonable and reliable cost estimates for a project cannot be made, the Company uses the completed contract method to recognize revenues and costs. If reasonable and reliable costs estimates for a project can be made, the Company recognizes revenue over the contract term on a proportional performance basis, as determined by the relationship of actual costs incurred compared to the estimated total contract costs. The Company’s billings for reimbursement of out-of-pocket expenses, including travel and certain third-party vendor expenses such as shipping and handling costs and telecommunication charges, are included in pass-through revenue. The related reimbursable costs are reflected as cost of pass-through revenue. The Company’s cost of service fee revenue, representing the cost to provide the services described above, is recognized as incurred. Cost of service fee revenue also includes certain costs associated with technology collaboration and ongoing technology support that include maintenance, web hosting and other ongoing programming activities. These activities are primarily performed to support the distribution and order management/customer care services and are recognized as incurred. Accounts Receivable The Company recognizes revenue and records trade accounts receivable, pursuant to the methods described above, when collectability is reasonably assured. Collectability is evaluated in the aggregate and on an individual customer or client basis taking into consideration payment due date, historical payment trends, current financial position, results of independent credit evaluations and payment terms. Related reserves are determined by either using percentages applied to certain aged receivable categories based on historical results, reevaluated and adjusted as additional information is received, or a specific identification method. After all attempts to collect a receivable have failed, the receivable is written off against the allowance for doubtful accounts. Deferred Revenues and Deferred Costs The Company primarily performs its services under multiple-year contracts, certain of which include early termination provisions, and clients are obligated to pay for services performed. In conjunction with these long-term contracts, the Company sometimes receives start-up fees to cover its implementation costs, including certain technology infrastructure and development costs. When the Company determines that these start-up and integration activities do not meet the criteria for recognition as a separate unit of accounting, the Company defers the start-up fees received, and the related costs, and recognizes them over the contract term, which the Company believes approximates the performance period. The amortization of deferred revenue is included as a component of service fee revenue. The amortization of deferred implementation costs is included as a cost of service fee revenue. To the extent implementation costs for non-technology infrastructure and development exceed the corresponding fees received, the excess costs are expensed as incurred. Investment in Subsidiaries PFS has made advances to Supplies Distributors that are evidenced by a Subordinated Demand Note (the “Subordinated Note”). Under the terms of certain of the Company’s debt facilities, the outstanding balance of the Subordinated Note cannot be increased to more than $5.0 million or decreased to less than $2.5 million without prior approval of certain of the Company’s lenders. As of June 30, 2015 and December 31, 2014, the outstanding balance of the Subordinated Note was $2.5 million. The Subordinated Note is eliminated in the Company’s consolidated financial statements. Concentration of Business and Credit Risk One service fee client relationship represented approximately 14% of the Company’s consolidated total net revenues, including pass-through revenue, during the six months ended June 30, 2015. No customer or service fee client exceeded 10% of consolidated accounts receivable. A summary of the nonaffiliated customer and client concentrations as a percentage of product revenue and service fee revenue, respectively, is as follows: Six Months Ended June 30, 2015 2014 Product Revenue (as a percentage of total Product Revenue): Customer 1 15 % 12 % Customer 2 14 % 12 % Service Fee Revenue (as a percentage of total Service Fee Revenue): Client 1 15 % — The Company currently anticipates that its product revenue from the customers identified above will decline during the next twelve months. The Company has provided certain collateralized guarantees of its subsidiaries’ financings and credit arrangements. These subsidiaries’ ability to obtain financing on similar terms would be significantly impacted without these guarantees. The Company has multiple arrangements with International Business Machines Corporation (“IBM”) and Ricoh. These arrangements include Supplies Distributors’ distributor agreements and certain of Supplies Distributors’ working capital financing agreements. The majority of Supplies Distributors’ revenue is generated by its sale of product purchased from Ricoh. Supplies Distributors also relies upon Ricoh’s sales force and product demand generation activities and the discontinuance of such services would have a material impact upon Supplies Distributors’ business. In addition, Supplies Distributors has product sales to IBM and Ricoh business affiliates. As a result of certain operational restructuring of its business, Ricoh has implemented, and will continue to implement, certain changes in the sale and distribution of Ricoh products. The changes have resulted, and are expected to continue to result, in reduced revenues and profitability for Supplies Distributors. Inventories Inventories (all of which are finished goods) are stated at the lower of weighted average cost or market. The Company establishes inventory reserves based upon estimates of declines in values due to inventories that are slow moving or obsolete, excess levels of inventory or values assessed at lower than cost. Supplies Distributors assumes responsibility for slow-moving inventory under its Ricoh distributor agreements, subject to certain termination rights, but has the right to return product rendered obsolete by engineering changes, as defined. In the event PFS, Supplies Distributors and Ricoh terminate the distributor agreements, the agreements provide for the parties to mutually agree on a plan of disposition of Supplies Distributors’ then existing inventory. Operating Leases The Company leases certain real estate for its warehouse, call center and corporate offices, as well as certain equipment, under non-cancelable operating leases that expire at various dates through 2024. Management expects that, in the normal course of business, leases that expire will be renewed or replaced by other similar leases. The Company recognizes escalating lease payments on a straight-line basis over the term of each respective lease with the difference between cash payments and rent expense recognized being recorded as deferred rent in the accompanying consolidated balance sheets. Property and Equipment The Company’s property held under capital leases totaled approximately $4.7 million and $4.8 million, net of accumulated amortization of approximately $3.6 million and $4.0 million, at June 30, 2015 and December 31, 2014, respectively. Depreciation and amortization expense related to capital leases during the six months ended June 30, 2015 and 2014 was $1.0 million and $1.2 million, respectively. Income Taxes The Company records a tax provision primarily associated with state income taxes and its foreign operations. The Company has recorded a valuation allowance for the majority of its domestic net deferred tax assets, which are primarily related to its net operating loss carryforwards and for certain foreign deferred tax assets. Cash Paid for Interest and Taxes The Company made payments for interest of approximately $0.3 million in each of the six month periods ended June 30, 2015 and 2014. Income taxes of approximately $0.7 million and $0.4 million were paid by the Company during the six month periods ended June 30, 2015 and 2014, respectively. Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs . In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Net Loss Per Common Share	3. NET LOSS PER COMMON SHARE Basic and diluted net loss per common share are computed by dividing net loss by the weighted-average number of common shares outstanding for the reporting period. Stock options not included in the calculation of diluted net loss per common share for the six months ended June 30, 2015, and 2014 were 1.3 million and 1.8 million, respectively, as the effect would be anti-dilutive.

Stock and Stock Options

Stock and Stock Options	6 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock and Stock Options	4. STOCK AND STOCK OPTIONS On March 23, 2015, pursuant to the Company’s Employee Stock and Incentive Plan, as amended and restated (“the Plan”), the Company issued approximately 12,000 Other Stock-Based Awards and approximately 38,000 Restricted Stock Unit Awards (as such terms are defined in the Plan) to certain of the Company’s executive officers and senior management. The Restricted Stock Unit Awards are subject to three year vesting based on continued employment. In March 2015, the Company issued Restricted Stock Units and Performance-Based Share Awards (as such terms are defined in the Plan) to the Company’s executives and senior management. Under the terms of the 2015 awards, the number of restricted stock units and performance shares that each such individual may receive is subject to, and calculated by reference to, the achievement by the Company of a performance goal measured by a range of targeted financial performance, as defined, for 2015, as well as, for certain of the restricted stock units, individual performance goals, as defined. Assuming achievement of the highest financial and individual performance goal, the aggregate maximum number of restricted stock units is 86,500 and the aggregate maximum number of performance shares is approximately 280,000, which performance shares are subject to annual vesting based upon continued employment, and for certain of the performance shares, the comparative performance (on an annual and cumulative basis) of the Company’s common stock on NASDAQ compared to the Russell Micro Cap Index. During the six months ended June 30, 2015 the Company issued an aggregate of 156,000 options to purchase shares of common stock, which generally vest over a three-year period. Total stock-based compensation expense was $2.0 million and $1.7 million for the six month periods ended June 30, 2015 and 2014, respectively, and was included as a component of selling, general and administrative expenses in the consolidated statements of operations.

Vendor Financing

Vendor Financing	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Vendor Financing	5. VENDOR FINANCING Supplies Distributors has a short-term credit facility with IBM Credit LLC to finance its distribution of Ricoh products in the United States, providing financing for eligible Ricoh inventory and certain receivables up to $15.0 million. The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90-day notice. Given the structure of this facility and as outstanding balances, which represent inventory purchases, are repaid within twelve months, the Company has classified the outstanding amounts under this facility, which were $7.9 million and $8.4 million as of June 30, 2015 and December 31, 2014, respectively, as accounts payable in the consolidated balance sheets. As of June 30, 2015, Supplies Distributors had $2.5 million of available credit under this facility. The credit facility contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. The credit facility also contains financial covenants, such as annualized revenue to working capital, net profit after tax to revenue, and total liabilities to tangible net worth, as defined, and is secured by certain of the assets of Supplies Distributors, as well as a collateralized guaranty of PFSweb. Additionally, PFS is required to maintain a minimum Subordinated Note receivable balance from Supplies Distributors of $2.5 million and the Company is required to maintain a minimum shareholders’ equity of $18.0 million. Borrowings under the credit facility accrue interest, after a defined free financing period, at prime rate plus 0.5% (3.75% as of June 30, 2015). The facility also includes a monthly service fee. In August 2015, the Company amended this facility with IBM Credit LLC. See Note 9 below.

Debt and Capital Lease Obligati

Debt and Capital Lease Obligations	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt and Capital Lease Obligations	6. DEBT AND CAPITAL LEASE OBLIGATIONS; Outstanding debt and capital lease obligations consist of the following (in thousands): June 30, December 31, 2015 2014 Loan and security agreements Supplies Distributors $ 2,167 $ 3,267 PFS 1,704 1,890 Master lease agreements 5,370 5,589 Other 215 166 Total 9,456 10,912 Less current portion of long-term debt 5,717 6,850 Long-term debt, less current portion $ 3,739 $ 4,062 Loan and Security Agreement – Supplies Distributors Supplies Distributors has a loan and security agreement with Wells Fargo Bank, National Association (“Wells Fargo”) to provide financing for up to $12 million of eligible accounts receivable in the United States and Canada. As of June 30, 2015, Supplies Distributors had $2.9 million of available credit under this agreement. The Wells Fargo facility expires on the earlier of March 2016 or the date on which the parties to the Ricoh distributor agreement no longer operate under the terms of such agreement and/or Ricoh no longer supplies products pursuant to such agreement. Borrowings under the Wells Fargo facility accrue interest at prime rate plus 0.25% to 0.75% (3.75% as of June 30, 2015) or Eurodollar rate plus 2.5% to 3.0%, dependent on excess availability and subject to a minimum of 3.0%, as defined. The interest rate as of June 30, 2015 was 3.75% for $1.2 million of outstanding borrowings and 3.0% for $1.0 million of outstanding borrowings. As of December 31, 2014, the interest rate was 3.75% for $2.3 million of outstanding borrowings and 3.0% for $1.0 million of outstanding borrowings. This agreement includes a monthly service fee and contains cross default provisions, various restrictions upon the ability of Supplies Distributors to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), provide guarantees, make investments and loans, pledge assets, make changes to capital stock ownership structure and pay dividends. This agreement also contains financial covenants, such as minimum net worth, as defined, and is secured by all of the assets of Supplies Distributors, as well as a collateralized guaranty of PFS. Additionally, PFS is required to maintain a Subordinated Note receivable balance from Supplies Distributors of no less than $2.5 million, may not maintain restricted cash of more than $5.0 million and is restricted with regard to transactions with related parties, indebtedness and changes to capital stock ownership structure. Supplies Distributors has entered into blocked account agreements with its banks pursuant to which a security interest was granted to Wells Fargo for all U.S. and Canadian customer remittances received in specified bank accounts. In August 2015, the Company replaced this Wells Fargo facility with a new credit facility with Regions Bank. See Note 9 below. Loan and Security Agreement – PFS PFS has a Loan and Security Agreement (“Comerica Agreement”) with Comerica Bank (“Comerica”). The Comerica Agreement provides for up to $17.0 million ($20.0 million during certain seasonal peak months) of eligible accounts receivable financing (“Working Capital Advances”) through March 2016. The Comerica Agreement also provided for up to $2.0 million of eligible equipment advances (“Equipment Advances”) through March 2015, with a final maturity date of September 15, 2017. As of June 30, 2015, PFS had $16.9 million of available credit under the Working Capital Advance portion of this facility and no available credit for Equipment Advances. Effective March 31, 2014, borrowings under the Working Capital Advance portion of the Comerica Agreement accrue interest at prime rate plus 1% (4.25% at June 30, 2015) while the Equipment Advances accrue interest at prime rate plus 1.5% (4.75% at June 30, 2015). The Comerica Agreement includes a monthly service fee and contains cross default provisions and various restrictions upon PFS’ ability to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to related parties (including entities directly or indirectly owned by PFSweb, Inc.), make capital expenditures, make investments and loans, pledge assets, make changes to capital stock ownership structure, as well as financial covenants of a minimum tangible net worth of $20 million, as defined, a minimum earnings before interest and taxes, plus depreciation, amortization and non-cash compensation accruals, if any, as defined, and a minimum liquidity ratio, as defined. The Comerica Agreement restricts the amount of the Subordinated Note receivable from Supplies Distributors to a maximum of $5.0 million. Comerica has provided approval for PFS to advance incremental amounts subject to certain financial covenants, as defined, to certain of its subsidiaries and/or affiliates, if needed. The Comerica Agreement is secured by all of the assets of PFS, as well as a guarantee of PFSweb, Inc. In August 2015, the Company replaced this Comerica facility with a new credit facility with Regions Bank. See Note 9 below. Debt Covenants To the extent the Company or any of its subsidiaries fail to comply with its covenants applicable to its debt or vendor financing obligations, including the monthly financial covenant requirements, such as profitability and cash flow, and required level of shareholders’ equity or net worth (as defined), the Company would be required to obtain a waiver from the lender or the lender would be entitled to accelerate the repayment of any outstanding credit facility obligations, and exercise all other rights and remedies, including sale of collateral and enforcement of payment under the Company parent guarantee. Any acceleration of the repayment of the credit facilities may have a material adverse impact on the Company’s financial condition and results of operations and no assurance can be given that the Company would have the financial ability to repay all of such obligations. As of and for the six months ended June 30, 2015, the Company was in compliance with all debt covenants. Master Lease Agreements The Company has various agreements that provide for leasing or financing transactions of equipment and other assets and will continue to enter into such arrangements as needed to finance the purchasing or leasing of certain equipment or other assets. Borrowings under these agreements, which generally have terms of three to five years, are generally secured by the related equipment, and in certain cases, by a Company parent guarantee.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	7. SEGMENT INFORMATION The Company is currently organized into two primary operating segments, which generally align with its corporate organization structure. In the first segment, PFSweb is a global provider of various infrastructure, technology, and digital agency solutions and operates as a service fee business. In the second operating segment (“Business and Retail Connect”), subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. In this segment, the Company generally recognizes product revenue. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Revenues (in thousands): PFSweb $ 49,434 $ 36,138 $ 96,143 $ 71,890 Business and Retail Connect 17,062 21,676 37,896 47,458 Eliminations (3,320 ) (3,771 ) (7,017 ) (8,076 ) $ 63,176 $ 54,043 $ 127,022 $ 111,272 Income (loss) from operations (in thousands): PFSweb $ (1,869 ) $ (2,677 ) $ (3,531 ) $ (4,530 ) Business and Retail Connect 370 497 917 912 $ (1,499 ) $ (2,180 ) $ (2,614 ) $ (3,618 ) Depreciation and amortization (in thousands): PFSweb $ 3,290 $ 2,834 $ 6,521 $ 5,681 Business and Retail Connect 19 44 43 87 $ 3,309 $ 2,878 $ 6,564 $ 5,768 Capital expenditures (in thousands): PFSweb $ 676 $ 1,321 $ 1,946 $ 2,902 Business and Retail Connect — 16 — 23 $ 676 $ 1,337 $ 1,946 $ 2,925 June 30, December 31, 2015 2014 Assets (in thousands): PFSweb $ 92,080 $ 104,372 Business and Retail Connect 36,442 47,682 Eliminations (11,869 ) (11,308 ) $ 116,653 $ 140,746

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. COMMITMENTS AND CONTINGENCIES The Company received municipal tax abatements in certain locations. In prior years, the Company received notice from a municipality that it did not satisfy certain criteria necessary to maintain the abatements and that the municipal authority planned to make an adjustment to the Company’s tax abatement. The Company disputed the adjustment and such dispute has been settled with the municipality. However, the amount of additional property taxes to be assessed against the Company and the timing of the related payments has not been finalized. As of June 30, 2015, the Company believes it has adequately accrued for the expected assessment. In April 2010, a sales employee of eCOST (the former name of Retail Connect) was charged with violating various federal criminal statutes in connection with the sales of eCOST products to certain customers, and approximately $620,000 held in an eCOST deposit account was seized and turned over to the Office of the U.S. Attorney in connection with such activity. In August 2012, the employee pleaded guilty to a misdemeanor. Neither the Company nor eCOST have been charged with any criminal activity, and the Company is seeking the recovery of the funds that are currently classified as other receivables on the June 30, 2015 and December 31, 2014 balance sheets. Based on the information available to date, the Company is unable to determine the amount of the loss, if any, relating to the seizure of such funds. No assurance can be given, however, that the seizure of such funds, or the inability of the Company to recover such funds or any significant portion thereof, or any costs and expenses incurred by the Company in connection with this matter will not have a material adverse effect upon the Company’s financial condition or results of operations. In connection with a client project, the Company has provided a $1.3 million performance bond which may be drawn upon in the event of a default by the Company of its obligations under the project, or, in the absence of a default, upon successful completion of the project, the bond will be returned. The Company is subject to claims in the ordinary course of business, including claims of alleged infringement by the Company or its subsidiaries of the patents, trademarks and other intellectual property rights of third parties. PFS is generally required to indemnify its service fee clients against any third party claims asserted against such clients alleging infringement by PFS of the patents, trademarks and other intellectual property rights of third parties.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Event	9 . SUBSEQUENT EVENT Acquisition On Consideration paid by the Company included an initial cash payment of $30.7 million and will include 553,223 unregistered shares of Company common stock (approximately $7.2 million in value as of the acquisition date). The Purchase Agreement also provides for (i) adjustment of the initial cash payment based upon a post-closing balance sheet reconciliation and (ii) future earn-out payments (“CrossView Earn-out Payments”) payable in 2016, 2017 and 2018 based on CrossView and the Buyer’s achievement of certain 2015, 2016 and 2017 financial targets. The CrossView Earn-out Payments have no guaranteed minimum and an aggregate maximum of $18.0 million and are subject to possible offsets for indemnification and other claims arising under the Purchase Agreement. The Company will pay 20% of the 2015 earn-out and 15% of the 2016 earn-out and 2017 earn-out in restricted shares of Company common stock, based on its then current market value at the time of issuance. New and Amended Financing Agreements On August 5, 2015, the Company and its U.S. subsidiaries entered into a credit agreement (“Credit Agreement”) with Regions Bank, as agent for itself and one or more lenders now or hereafter made a party thereto (the “Lenders”). Under this Credit Agreement, and subject to the terms set forth therein, the Lenders have agreed to provide the Company’s subsidiary, PFS, with an initial $30 million revolving loan facility and an initial $10 million term loan facility. Subject to the terms of the Credit Agreement, PFS has the ability to increase the revolving loan facility to $35 million and the term loan facility to $20 million, as well as the ability to increase the total loan facilities to $75 million. Availability under the revolving loan facility may not exceed a borrowing base of eligible accounts receivable (as defined). Advances under the Credit Agreement accrue interest at a variable rate, plus an applicable margin, and have a five year maturity, with scheduled amortization payments for term loan advances. The Credit Agreement is secured by a lien on substantially all of the assets of Company and its U.S. subsidiaries and a pledge of 65% of the shares of the Company’s foreign subsidiaries. The Credit Agreement contains cross default provisions, various restrictions upon the Company’s ability to, among other things, merge, consolidate, sell assets, incur indebtedness, make loans and payments to subsidiaries, affiliates and related parties, make capital expenditures, make investments and loans, pledge assets, make changes to capital stock ownership structure, as well as financial covenants, as defined, of a minimum fixed charge ratio and a maximum leverage ratio. The Credit Agreement replaces the Company’s prior financing with Comerica and Wells Fargo, which were terminated concurrent with the closing under the Credit Agreement. On August 3, 2015, the Company amended the short-term credit facility between Supplies Distributors and IBM Credit LLC to reduce the maximum financing amount to $13.0 million and eliminate the Company’s minimum shareholders' equity requirement of $18.0 million.

Significant Accounting Polici16

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The interim consolidated financial statements as of June 30, 2015, and for the three and six months ended June 30, 2015 and 2014, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and are unaudited. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC. In the opinion of management and subject to the foregoing, the unaudited interim consolidated financial statements of the Company include all adjustments necessary for a fair presentation of the Company’s financial position as of June 30, 2015, its results of operations for the three and six months ended June 30, 2015 and 2014 and its cash flows for the six months ended June 30, 2015 and 2014. Results of the Company’s operations for interim periods may not be indicative of results for the full fiscal year.
Principles of Consolidation	Principles of Consolidation All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The recognition and allocation of certain revenues and selling, general and administrative expenses in these consolidated financial statements also require management estimates and assumptions. Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the operating environment changes. These changes have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. These uncertainties are discussed in this report and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 in the section entitled “Risk Factors.” Based on a critical assessment of accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes the Company’s consolidated financial statements are fairly stated in accordance with U.S. GAAP, and provide a fair presentation of the Company’s financial position and results of operations.
Revenue and Cost Recognition	Revenue and Cost Recognition The Company derives revenue primarily from services provided under contractual arrangements with its clients or from the sale of products under its distributor agreements. The following revenue recognition policies define the manner in which the Company accounts for sales transactions. The Company recognizes revenue when persuasive evidence of a sales arrangement exists, product shipment or delivery has occurred or services are rendered, the sales price or fee is fixed or determinable, and collectability is reasonably assured. In instances where revenue is derived from sales of third-party vendor services, the Company records revenue on a gross basis when the Company is a principal to the transaction and net of costs when the Company is acting as an agent between the customer or client and the vendor. The Company considers several factors to determine whether it is a principal or an agent, most notably whether the Company is the primary obligor to the vendor or customer, has established its own pricing and has inventory and credit risks, if applicable. Product Revenue Activity Depending on the terms of the customer arrangement, Supplies Distributors recognizes product revenue and product cost either upon the shipment of product to customers or when the customer receives the product. Supplies Distributors permits its customers to return product for credit against other purchases, which include returns for defective products (that Supplies Distributors then returns to the manufacturer) and incorrect shipments. Supplies Distributors provides a reserve for estimated returns and allowances and offers terms to its customers that it believes are standard for its industry. Freight costs billed to customers are reflected as components of product revenue. Freight costs incurred are recorded as a component of cost of goods sold. Under its distributor agreements, Supplies Distributors bills Ricoh for reimbursements of certain expenses, including: pass-through customer marketing programs, including rebates and co-op funds; certain freight costs; direct costs incurred in passing on any price decreases offered by Ricoh to Supplies Distributors or its customers to cover price protection and certain special bids; the cost of products provided to replace defective product returned by customers; and certain other expenses as defined. Supplies Distributors records these reimbursable amounts as they are incurred as other receivables in the consolidated balance sheet with a corresponding reduction in either inventory or cost of product revenue. Supplies Distributors also records pass-through customer marketing programs as a reduction of both product revenue and cost of product revenue. Service Fee Revenue Activity The Company’s service fee revenue primarily relates to its distribution services, order management/customer care services, professional digital agency and technology services. The Company typically charges its service fee revenue on either a cost-plus basis, a percent of shipped revenue basis, on a time and materials, project or retainer basis for professional services, or a per transaction basis, such as a per item basis for fulfillment services or a per labor hour basis for web-enabled customer contact center services. Additional fees are billed for other services. The Company evaluates its contractual arrangements to determine whether or not they include multiple service elements. Revenue recognition is determined for the separate service elements of the contract in accordance with the requirements of Accounting Standards Codification 605, “Revenue Recognition.” A deliverable constitutes a separate unit of accounting when it has standalone value and there are no return rights or other contingencies present for the delivered elements. The Company allocates revenue to each element based on estimated selling price. Each of t he Company’s Distribution services relate primarily to inventory management, product receiving, warehousing and fulfillment (i.e., picking, packing and shipping) and facilities and operations management. Service fee revenue for these activities is recognized as earned, which is either (i) on a per transaction basis or (ii) at the time of product fulfillment, which occurs at the completion of the distribution services. Order management/customer care services relate primarily to taking customer orders for the Company’s clients’ products. These services also include addressing customer questions related to orders, as well as cross-selling/up-selling activities. Service fee revenue for this activity is recognized as the services are rendered. Fees charged to the client are on a per transaction basis based on either (i) a pre-determined fee per order or fee per telephone minutes incurred, (ii) a per dedicated agent fee, or (iii) are included in the product fulfillment service fees that are recognized on product shipment. Professional consulting and technology service revenues primarily relate to design, implementation, service and support of eCommerce platforms, website design and solutions and quality control for the Company’s clients. Additionally, the Company provides digital agency services that enable client marketing programs to attract new customers, convert buyers and increase website value. These fees are typically charged on either a per labor hour basis, or transaction basis, a dedicated resource model, a fixed price arrangement, or a percent of merchandise shipped basis. Service fee revenue for this activity is generally recognized as the services are rendered. The Company performs front-end set-up and integration services to support client eCommerce plaftorms and websites. When the Company determines that these front-end set-up and integration services do not meet the criteria for recognition as a separate unit of accounting, the Company defers the start-up fees received and the related costs, and recognizes them over the contract term, which the Company believes approximates the performance period. When the Company determines that these front-end set-up and integration services do meet the criteria for recognition as a separate unit of accounting, for time and material arrangements, the Company recognizes revenue as services are rendered and costs as they are incurred. For fixed-price arrangements, if reasonable and reliable cost estimates for a project cannot be made, the Company uses the completed contract method to recognize revenues and costs. If reasonable and reliable costs estimates for a project can be made, the Company recognizes revenue over the contract term on a proportional performance basis, as determined by the relationship of actual costs incurred compared to the estimated total contract costs. The Company’s billings for reimbursement of out-of-pocket expenses, including travel and certain third-party vendor expenses such as shipping and handling costs and telecommunication charges, are included in pass-through revenue. The related reimbursable costs are reflected as cost of pass-through revenue. The Company’s cost of service fee revenue, representing the cost to provide the services described above, is recognized as incurred. Cost of service fee revenue also includes certain costs associated with technology collaboration and ongoing technology support that include maintenance, web hosting and other ongoing programming activities. These activities are primarily performed to support the distribution and order management/customer care services and are recognized as incurred. Accounts Receivable The Company recognizes revenue and records trade accounts receivable, pursuant to the methods described above, when collectability is reasonably assured. Collectability is evaluated in the aggregate and on an individual customer or client basis taking into consideration payment due date, historical payment trends, current financial position, results of independent credit evaluations and payment terms. Related reserves are determined by either using percentages applied to certain aged receivable categories based on historical results, reevaluated and adjusted as additional information is received, or a specific identification method. After all attempts to collect a receivable have failed, the receivable is written off against the allowance for doubtful accounts. Deferred Revenues and Deferred Costs The Company primarily performs its services under multiple-year contracts, certain of which include early termination provisions, and clients are obligated to pay for services performed. In conjunction with these long-term contracts, the Company sometimes receives start-up fees to cover its implementation costs, including certain technology infrastructure and development costs. When the Company determines that these start-up and integration activities do not meet the criteria for recognition as a separate unit of accounting, the Company defers the start-up fees received, and the related costs, and recognizes them over the contract term, which the Company believes approximates the performance period. The amortization of deferred revenue is included as a component of service fee revenue. The amortization of deferred implementation costs is included as a cost of service fee revenue. To the extent implementation costs for non-technology infrastructure and development exceed the corresponding fees received, the excess costs are expensed as incurred.
Investment in Subsidiaries	Investment in Subsidiaries PFS has made advances to Supplies Distributors that are evidenced by a Subordinated Demand Note (the “Subordinated Note”). Under the terms of certain of the Company’s debt facilities, the outstanding balance of the Subordinated Note cannot be increased to more than $5.0 million or decreased to less than $2.5 million without prior approval of certain of the Company’s lenders. As of June 30, 2015 and December 31, 2014, the outstanding balance of the Subordinated Note was $2.5 million. The Subordinated Note is eliminated in the Company’s consolidated financial statements.
Concentration of Business and Credit Risk	Concentration of Business and Credit Risk One service fee client relationship represented approximately 14% of the Company’s consolidated total net revenues, including pass-through revenue, during the six months ended June 30, 2015. No customer or service fee client exceeded 10% of consolidated accounts receivable. A summary of the nonaffiliated customer and client concentrations as a percentage of product revenue and service fee revenue, respectively, is as follows: Six Months Ended June 30, 2015 2014 Product Revenue (as a percentage of total Product Revenue): Customer 1 15 % 12 % Customer 2 14 % 12 % Service Fee Revenue (as a percentage of total Service Fee Revenue): Client 1 15 % — The Company currently anticipates that its product revenue from the customers identified above will decline during the next twelve months. The Company has provided certain collateralized guarantees of its subsidiaries’ financings and credit arrangements. These subsidiaries’ ability to obtain financing on similar terms would be significantly impacted without these guarantees. The Company has multiple arrangements with International Business Machines Corporation (“IBM”) and Ricoh. These arrangements include Supplies Distributors’ distributor agreements and certain of Supplies Distributors’ working capital financing agreements. The majority of Supplies Distributors’ revenue is generated by its sale of product purchased from Ricoh. Supplies Distributors also relies upon Ricoh’s sales force and product demand generation activities and the discontinuance of such services would have a material impact upon Supplies Distributors’ business. In addition, Supplies Distributors has product sales to IBM and Ricoh business affiliates. As a result of certain operational restructuring of its business, Ricoh has implemented, and will continue to implement, certain changes in the sale and distribution of Ricoh products. The changes have resulted, and are expected to continue to result, in reduced revenues and profitability for Supplies Distributors.
Inventories	Inventories Inventories (all of which are finished goods) are stated at the lower of weighted average cost or market. The Company establishes inventory reserves based upon estimates of declines in values due to inventories that are slow moving or obsolete, excess levels of inventory or values assessed at lower than cost. Supplies Distributors assumes responsibility for slow-moving inventory under its Ricoh distributor agreements, subject to certain termination rights, but has the right to return product rendered obsolete by engineering changes, as defined. In the event PFS, Supplies Distributors and Ricoh terminate the distributor agreements, the agreements provide for the parties to mutually agree on a plan of disposition of Supplies Distributors’ then existing inventory.
Operating Leases	Operating Leases The Company leases certain real estate for its warehouse, call center and corporate offices, as well as certain equipment, under non-cancelable operating leases that expire at various dates through 2024. Management expects that, in the normal course of business, leases that expire will be renewed or replaced by other similar leases. The Company recognizes escalating lease payments on a straight-line basis over the term of each respective lease with the difference between cash payments and rent expense recognized being recorded as deferred rent in the accompanying consolidated balance sheets.
Property and Equipment	Property and Equipment The Company’s property held under capital leases totaled approximately $4.7 million and $4.8 million, net of accumulated amortization of approximately $3.6 million and $4.0 million, at June 30, 2015 and December 31, 2014, respectively. Depreciation and amortization expense related to capital leases during the six months ended June 30, 2015 and 2014 was $1.0 million and $1.2 million, respectively.
Income Taxes	Income Taxes The Company records a tax provision primarily associated with state income taxes and its foreign operations. The Company has recorded a valuation allowance for the majority of its domestic net deferred tax assets, which are primarily related to its net operating loss carryforwards and for certain foreign deferred tax assets.
Cash Paid for Interest and Taxes	Cash Paid for Interest and Taxes The Company made payments for interest of approximately $0.3 million in each of the six month periods ended June 30, 2015 and 2014. Income taxes of approximately $0.7 million and $0.4 million were paid by the Company during the six month periods ended June 30, 2015 and 2014, respectively.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issuance Costs . In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory

Overview and Basis of Present17

Overview and Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2015
Business Acquisition [Line Items]
Schedule of Pro Forma Information for Comparative Purposes Assuming Acquisition of REV and LAL	The following table presents selected pro forma information, for comparative purposes, assuming the acquisitions of REV and LAL had occurred on January 1, 2014 (unaudited) and now include the impact of the acquisition related amortization of intangible assets (approximately $0.2 million per quarter), which were previously omitted (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2014 2014 Total revenues $ 58,239 $ 118,780 Net loss (1,934 ) (3,938 ) Basic and diluted net loss per share (0.12 ) (0.24 )
Summary of Estimated Amortization Expense	The estimated amortization expense for each of the next five years is as follows (in thousands): 2015 $ 951 2016 533 2017 345 2018 200 2019 138
REV
Business Acquisition [Line Items]
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 765 Accounts receivable 1,753 Property and equipment 289 Identifiable intangibles 1,019 Other assets 16 Total assets acquired 3,842 Total liabilities assumed 655 Net assets acquired 3,187 Goodwill 2,756 Total purchase price $ 5,943
Schedule of Purchase Price	Purchase price for REV is as follows (in thousands): Number of shares of common stock issued 27,407 Multiplied by PFSweb Inc.'s stock price $ 10.95 Share consideration for settlement of performance-based contingent payments $ 300 Aggregate cash payments 4,254 Performance-based contingent payments (based on fair value at acquisition date) 1,389 Total purchase price $ 5,943
Schedule of Definite-Lived Intangible Assets Acquired	Definite lived intangible assets acquired in the REV acquisition consist of (in thousands): June 30, 2015 Estimated Fair Value Accumulated Net Carrying Useful Life at Acquisition Amortization Value from Non-compete agreements $ 94 $ (37 ) $ 57 1-3.5 years Leasehold 45 (15 ) 30 2.5 years Customer relationships 880 (233 ) 647 6 years Total definite lived intangible assets $ 1,019 $ (285 ) $ 734
LAL
Business Acquisition [Line Items]
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash $ 30 Accounts receivable, net 1,299 Property and equipment 253 Identifiable intangibles 1,290 Other assets 28 Total assets acquired 2,900 Total liabilities assumed 1,617 Net assets acquired 1,283 Goodwill 5,610 Total purchase price $ 6,893
Schedule of Purchase Price	Purchase price for LAL is as follows (in thousands, except share data): Number of shares of common stock issued 54,604 Multiplied by PFSweb Inc.'s stock price $ 9.96 Share consideration $ 544 Aggregate cash payments 4,950 Performance-based contingent payments (based on fair value at acquisition date) 1,399 Total purchase price $ 6,893
Schedule of Definite-Lived Intangible Assets Acquired	Definite lived intangible assets acquired in the LAL acquisition consist of (in thousands): June 30, 2015 Estimated Fair Value Accumulated Net Carrying Useful Life at Acquisition Amortization Value from Acquisition Non-compete agreements $ 150 $ (32 ) $ 118 3.5 years Trade name 150 (50 ) 100 2.25 years Customer relationships 990 (234 ) 756 6 years Total definite lived intangible assets $ 1,290 $ (316 ) $ 974
Moda
Business Acquisition [Line Items]
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the unaudited estimated fair value of the tangible and intangible assets acquired and liabilities assumed (in thousands): Cash and cash equivalents $ 126 Accounts receivable 335 Property and equipment 27 Other assets 23 Total assets acquired 511 Total liabilities assumed 542 Net liabilities assumed (31 ) Goodwill and intangible assets 1,957 Total purchase price $ 1,926
Schedule of Purchase Price	The estimated purchase price for Moda is as follows (in thousands, except share data): Number of shares of common stock issued 16,116 Multiplied by PFSweb Inc.'s stock price $ 14.60 Share consideration $ 235 Aggregate cash payments 1,005 Performance-based contingent payments (based on fair value at acquisition date) 686 Total purchase price $ 1,926

Significant Accounting Polici18

Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Summary of Non-affiliated Customer and Client Concentrations as Percentage of Product Revenue and Service Fee Revenue	A summary of the nonaffiliated customer and client concentrations as a percentage of product revenue and service fee revenue, respectively, is as follows: Six Months Ended June 30, 2015 2014 Product Revenue (as a percentage of total Product Revenue): Customer 1 15 % 12 % Customer 2 14 % 12 % Service Fee Revenue (as a percentage of total Service Fee Revenue): Client 1 15 % —

Debt and Capital Lease Obliga19

Debt and Capital Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Summary of Outstanding Debt and Capital Lease Obligations	Outstanding debt and capital lease obligations consist of the following (in thousands): June 30, December 31, 2015 2014 Loan and security agreements Supplies Distributors $ 2,167 $ 3,267 PFS 1,704 1,890 Master lease agreements 5,370 5,589 Other 215 166 Total 9,456 10,912 Less current portion of long-term debt 5,717 6,850 Long-term debt, less current portion $ 3,739 $ 4,062

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Summary of Product Revenue by Segments	The Company is currently organized into two primary operating segments, which generally align with its corporate organization structure. In the first segment, PFSweb is a global provider of various infrastructure, technology, and digital agency solutions and operates as a service fee business. In the second operating segment (“Business and Retail Connect”), subsidiaries of the Company purchase inventory from clients and resell the inventory to client customers. In this segment, the Company generally recognizes product revenue. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Revenues (in thousands): PFSweb $ 49,434 $ 36,138 $ 96,143 $ 71,890 Business and Retail Connect 17,062 21,676 37,896 47,458 Eliminations (3,320 ) (3,771 ) (7,017 ) (8,076 ) $ 63,176 $ 54,043 $ 127,022 $ 111,272 Income (loss) from operations (in thousands): PFSweb $ (1,869 ) $ (2,677 ) $ (3,531 ) $ (4,530 ) Business and Retail Connect 370 497 917 912 $ (1,499 ) $ (2,180 ) $ (2,614 ) $ (3,618 ) Depreciation and amortization (in thousands): PFSweb $ 3,290 $ 2,834 $ 6,521 $ 5,681 Business and Retail Connect 19 44 43 87 $ 3,309 $ 2,878 $ 6,564 $ 5,768 Capital expenditures (in thousands): PFSweb $ 676 $ 1,321 $ 1,946 $ 2,902 Business and Retail Connect — 16 — 23 $ 676 $ 1,337 $ 1,946 $ 2,925 June 30, December 31, 2015 2014 Assets (in thousands): PFSweb $ 92,080 $ 104,372 Business and Retail Connect 36,442 47,682 Eliminations (11,869 ) (11,308 ) $ 116,653 $ 140,746

Overview and Basis of Present21

Overview and Basis of Presentation - Additional Information (Details)	Jun. 11, 2015USD ($)shares	Jun. 11, 2015GBP (£)shares	Sep. 22, 2014USD ($)shares	Sep. 03, 2014USD ($)shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2015USD ($)	Jun. 11, 2015GBP (£)
Business Acquisition [Line Items]
Amortization of Intangible Assets					$ 200,000	$ 500,000
REV
Business Acquisition [Line Items]
Initial consideration paid				$ 3,200,000
Consideration paid				$ 4,254,000
Business combination, liabilities recognized						1,700,000
Number of shares of common stock issued | shares				27,407
Share consideration				$ 300,000
Total goodwill						2,800,000
Goodwill acquired, deductible for tax purposes					0	0
Residual value for intangible assets					0	0
LAL
Business Acquisition [Line Items]
Initial consideration paid			$ 4,000,000
Consideration paid			$ 4,950,000
Business combination, liabilities recognized						1,800,000
Number of shares of common stock issued | shares			54,604
Share consideration			$ 544,000
Total goodwill						5,600,000
Goodwill acquired, deductible for tax purposes					0	0
Residual value for intangible assets					0	0
Moda
Business Acquisition [Line Items]
Earn-out payments, minimum | £							£ 0
Earn-out payments, maximum	$ 800,000						£ 500,000
Consideration paid	$ 1,005,000	£ 650,000
Number of shares of common stock issued | shares	16,116	16,116
Share consideration	$ 235,000
Moda | Restricted Shares
Business Acquisition [Line Items]
Number of shares of common stock issued | shares	16,116	16,116
2015 Earn-out Payments | REV
Business Acquisition [Line Items]
Earn-out payments, minimum					700,000	700,000
Earn-out payments, maximum					1,800,000	1,800,000
Earn-out payable in common stock				$ 200,000
2015 Earn-out Payments | LAL
Business Acquisition [Line Items]
Earn-out payments, maximum					2,000,000	$ 2,000,000
2015 Earn-out Payments | LAL | Maximum
Business Acquisition [Line Items]
Percentage of common stock Issuable			25.00%
2015 Earn-out Payments | Moda | Maximum | Restricted Shares
Business Acquisition [Line Items]
Percentage of common stock Issuable	25.00%	25.00%
2014 Earn-out Payments | REV
Business Acquisition [Line Items]
Consideration paid					$ 1,100,000
Number of shares of common stock issued | shares					27,407
Share consideration					$ 300,000
2014 Earn-out Payments | LAL
Business Acquisition [Line Items]
Consideration paid					$ 1,000,000
2016 Earn-out Payments | Moda | Maximum | Restricted Shares
Business Acquisition [Line Items]
Percentage of common stock Issuable	25.00%	25.00%

Overview and Basis of Present22

Overview and Basis of Presentation - Summary of the Estimated Fair Value of the Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jun. 11, 2015	Sep. 22, 2014	Sep. 03, 2014	Jun. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill				$ 10,322	$ 8,366
REV
Business Acquisition [Line Items]
Cash and cash equivalents			$ 765
Accounts receivable			1,753
Property and equipment			289
Identifiable intangibles			1,019
Other assets			16
Total assets acquired			3,842
Total liabilities assumed			655
Net assets acquired and net liabilities assumed			3,187
Goodwill			2,756
Total purchase price			$ 5,943
LAL
Business Acquisition [Line Items]
Cash and cash equivalents		$ 30
Accounts receivable		1,299
Property and equipment		253
Identifiable intangibles		1,290
Other assets		28
Total assets acquired		2,900
Total liabilities assumed		1,617
Net assets acquired and net liabilities assumed		1,283
Goodwill		5,610
Total purchase price		$ 6,893
Moda
Business Acquisition [Line Items]
Cash and cash equivalents	$ 126
Accounts receivable	335
Property and equipment	27
Other assets	23
Total assets acquired	511
Total liabilities assumed	542
Net assets acquired and net liabilities assumed	(31)
Total purchase price	1,926
Goodwill and intangible assets	$ 1,957

Overview and Basis of Present23

Overview and Basis of Presentation - Schedule of Purchase Price for REV (Details) - Sep. 03, 2014 - REV - USD ($) $ / shares in Units, $ in Thousands	Total
Business Acquisition [Line Items]
Number of shares of common stock issued	27,407
Multiplied by PFSweb Inc.'s stock price	$ 10.95
Share consideration	$ 300
Aggregate cash payments	4,254
Performance-based contingent payments (based on fair value at acquisition date)	1,389
Total purchase price	$ 5,943

Overview and Basis of Present24

Overview and Basis of Presentation - Acquisition Definite Lived Intangible Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
REV
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 1,019
Accumulated Amortization	(285)
Net Carrying Value	$ 734
REV | Noncompete Agreements | Minimum
Business Acquisition [Line Items]
Estimated	1 year
REV | Noncompete Agreements | Maximum
Business Acquisition [Line Items]
Estimated	3 years 6 months
REV | Noncompete Agreements | Useful life of 1 to 3.5 Years
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 94
Accumulated Amortization	(37)
Net Carrying Value	57
REV | Lease Agreements
Business Acquisition [Line Items]
Fair Value at Acquisition	45
Accumulated Amortization	(15)
Net Carrying Value	$ 30
Estimated	2 years 6 months
REV | Customer Relationships
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 880
Accumulated Amortization	(233)
Net Carrying Value	$ 647
Estimated	6 years
LAL
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 1,290
Accumulated Amortization	(316)
Net Carrying Value	974
LAL | Noncompete Agreements
Business Acquisition [Line Items]
Fair Value at Acquisition	150
Accumulated Amortization	(32)
Net Carrying Value	$ 118
Estimated	3 years 6 months
LAL | Lease Agreements
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 150
Accumulated Amortization	(50)
Net Carrying Value	$ 100
Estimated	2 years 3 months
LAL | Customer Relationships
Business Acquisition [Line Items]
Fair Value at Acquisition	$ 990
Accumulated Amortization	(234)
Net Carrying Value	$ 756
Estimated	6 years

Overview and Basis of Present25

Overview and Basis of Presentation - Schedule of Purchase Price for LAL (Details) - Sep. 22, 2014 - LAL - USD ($) $ / shares in Units, $ in Thousands	Total
Business Acquisition [Line Items]
Number of shares of common stock issued	54,604
Multiplied by PFSweb Inc.'s stock price	$ 9.96
Share consideration	$ 544
Aggregate cash payments	4,950
Performance-based contingent payments (based on fair value at acquisition date)	1,399
Total purchase price	$ 6,893

Overview and Basis of Present26

Overview and Basis of Presentation - Schedule of Estimated Purchase Price for Moda (Details) - Jun. 11, 2015 - Moda $ / shares in Units, $ in Thousands	USD ($)$ / sharesshares	GBP (£)shares
Business Acquisition [Line Items]
Number of shares of common stock issued | shares	16,116	16,116
Multiplied by PFSweb Inc.'s stock price | $ / shares	$ 14.60
Share consideration	$ 235
Aggregate cash payments	1,005	£ 650,000
Performance-based contingent payments (based on fair value at acquisition date)	686
Total purchase price	$ 1,926

Overview and Basis of Present27

Overview and Basis of Presentation - Schedule of Pro Forma Information for Comparative Purpose Assuming Acquisition (Details) - Jun. 30, 2014 - R E V Solutions Inc And Live Area Labs Incorporated - USD ($) $ / shares in Units, $ in Thousands	Total	Total
Business Acquisition [Line Items]
Total revenues	$ 58,239	$ 118,780
Net loss	$ (1,934)	$ (3,938)
Basic and diluted net loss per share	$ (0.12)	$ (0.24)

Overview and Basis of Present28

Overview and Basis of Presentation - Summary of Estimated Amortization Expenses (Details) - R E V Solutions Inc And Live Area Labs Incorporated $ in Thousands	Jun. 30, 2015USD ($)
Business Acquisition [Line Items]
2,015	$ 951
2,016	533
2,017	345
2,018	200
2,019	$ 138

Significant Accounting Polici29

Significant Accounting Policies - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)Customer	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Customer	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Significant Accounting Policies [Line Items]
Subordinated note outstanding	$ 2,500,000		$ 2,500,000		$ 2,500,000
Maximum life of current operating leases			expire at various dates through 2024
Capital leases	4,700,000		$ 4,700,000		4,800,000
Accumulated amortization	3,600,000		3,600,000		$ 4,000,000
Depreciation and amortization	$ 3,309,000	$ 2,878,000	6,564,000	$ 5,768,000
Payments for interest			300,000	300,000
Income taxes			700,000	400,000
Assets Held Under Capital Leases
Significant Accounting Policies [Line Items]
Depreciation and amortization			$ 1,000,000	$ 1,200,000
Sales Revenue, Services, Net
Significant Accounting Policies [Line Items]
Number of customers representing more than 10% | Customer	1		1
Credit Concentration Risk | Sales Revenue, Services, Net
Significant Accounting Policies [Line Items]
Concentration risk percentage			14.00%
Maximum
Significant Accounting Policies [Line Items]
Debt instrument covenant subordinated debt limit	$ 5,000,000		$ 5,000,000
Minimum
Significant Accounting Policies [Line Items]
Subordinated note outstanding	$ 2,500,000		$ 2,500,000

Significant Accounting Polici30

Significant Accounting Policies - Summary of Non-affiliated Customer and Client Concentrations (Details)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Product Revenue | Customer 1
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	12.00%
Product Revenue | Customer 2
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	12.00%
Sales Revenue, Services, Net | Client 1
Concentration Risk [Line Items]
Concentration risk percentage	15.00%

Net Loss Per Common Share - Add

Net Loss Per Common Share - Additional Information (Details) - shares shares in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive stock options diluted net loss per share	1.3	1.8

Stock and Stock Options - Addit

Stock and Stock Options - Additional Information (Details) - USD ($) $ in Millions	Mar. 23, 2015	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options and stock option plans vesting terms period			3 years
Stock option issued			156,000
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense			$ 2	$ 1.7
Other Stock-Based Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards issued under the employee stock and incentive plan	12,000
Restricted Stock Unit Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units awards issued	38,000
Stock options and stock option plans vesting terms period	3 years
Restricted Stock Unit Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option issued		86,500
Performance Shares | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option issued		280,000

Vendor Financing - Additional I

Vendor Financing - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Line Of Credit Facility [Line Items]
Subordinated note outstanding	$ 2,500,000	$ 2,500,000
Minimum
Line Of Credit Facility [Line Items]
Subordinated note outstanding	2,500,000
Supplies Distributors | Minimum
Line Of Credit Facility [Line Items]
Subordinated note outstanding	2,500,000
United States | IBM Credit LLC | Supplies Distributors
Line Of Credit Facility [Line Items]
Maximum financing receivable capacity through agreement thereafter	$ 15,000,000
Notice period time to exit from the agreement	The agreement has no stated maturity date and provides either party the ability to exit the facility following a 90-day notice.
Outstanding borrowing	$ 7,900,000	$ 8,400,000
Available credit	2,500,000
Minimum shareholders’ equity required to maintain	$ 18,000,000
Interest rate on outstanding borrowings	3.75%
United States | IBM Credit LLC | Supplies Distributors | Minimum
Line Of Credit Facility [Line Items]
Subordinated note outstanding	$ 2,500,000
United States | IBM Credit LLC | Supplies Distributors | Prime Rate
Line Of Credit Facility [Line Items]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	0.50%

Debt and Capital Lease Obliga34

Debt and Capital Lease Obligations - Summary of Outstanding Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Master lease agreements	$ 5,370	$ 5,589
Other	215	166
Debt and capital lease obligation	9,456	10,912
Current portion of long-term debt and capital lease obligations	5,717	6,850
Long-term debt, less current portion	3,739	4,062
Supplies Distributors
Debt Instrument [Line Items]
Loan and security agreements	2,167	3,267
PFS
Debt Instrument [Line Items]
Loan and security agreements	$ 1,704	$ 1,890

Debt and Capital Lease Obliga35

Debt and Capital Lease Obligations - Loan and Security Agreement - Supplies Distributors - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt and Capital Lease Obligations [Abstract]
Subordinated note outstanding	$ 2,500,000	$ 2,500,000
Minimum
Debt and Capital Lease Obligations [Abstract]
Subordinated note outstanding	2,500,000
Minimum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Subordinated note outstanding	2,500,000
Wells Fargo | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Maximum limit of loans and security agreement	12,000,000
Credit facility available under Loans and Security Agreement	$ 2,900,000
Maturity date of Loan and Security Agreement	Mar. 1, 2016
Wells Fargo | 1.0 Million Outstanding Borrowings | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Interest rate on outstanding borrowings	3.00%	3.00%
Outstanding borrowing	$ 1,000,000	$ 1,000,000
Wells Fargo | Three Point Seven Five Percentage Outstanding Borrowings | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Interest rate on outstanding borrowings	3.75%	3.75%
Outstanding borrowing	$ 1,200,000	$ 2,300,000
Wells Fargo | Minimum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Interest rate on outstanding borrowings	3.00%
Subordinated note outstanding	$ 2,500,000
Wells Fargo | Maximum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Maximum limit of restricted cash	$ 5,000,000
Wells Fargo | Prime Rate | Minimum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	0.25%
Wells Fargo | Prime Rate | Maximum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	0.75%
Wells Fargo | Eurodollar | Minimum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	2.50%
Wells Fargo | Eurodollar | Maximum | Supplies Distributors
Debt and Capital Lease Obligations [Abstract]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	3.00%

Debt and Capital Lease Obliga36

Debt and Capital Lease Obligations - Loan and Security Agreement - PFS - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Line Of Credit Facility [Line Items]
Subordinated note outstanding	$ 2,500,000		$ 2,500,000
PFS | Comerica
Line Of Credit Facility [Line Items]
Tangible net worth	20,000,000
Working Capital Advances | PFS | Comerica
Line Of Credit Facility [Line Items]
Maximum limit of loans and security agreement	$ 17,000,000
Working Capital Advances and Equipment Advances interest at prime rate plus, Stated percentage	4.25%
Credit facility available under Loans and Security Agreement	$ 16,900,000
Working Capital Seasonal Advances | PFS | Comerica
Line Of Credit Facility [Line Items]
Maximum limit of loans and security agreement	$ 20,000,000
Equipment Advances | PFS | Comerica
Line Of Credit Facility [Line Items]
Maximum limit of loans and security agreement		$ 2,000,000
Working Capital Advances and Equipment Advances interest at prime rate plus, Stated percentage	4.75%
Credit facility available under Loans and Security Agreement	$ 0
Equipment Advances maturity date	Sep. 15, 2017
Prime Rate | Working Capital Seasonal Advances | PFS | Comerica
Line Of Credit Facility [Line Items]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	1.00%
Prime Rate | Equipment Advances | PFS | Comerica
Line Of Credit Facility [Line Items]
Percentage points added to the reference rate to compute the variable rate on the debt instrument	1.50%
Maximum | PFS | Comerica
Line Of Credit Facility [Line Items]
Subordinated note outstanding	$ 5,000,000

Debt and Capital Lease Obliga37

Debt and Capital Lease Obligations - Master Lease Agreements - Additional Information (Details) - Lease Agreements	6 Months Ended
	Jun. 30, 2015
Minimum
Line Of Credit Facility [Line Items]
Loans and lease agreement term	3 years
Maximum
Line Of Credit Facility [Line Items]
Loans and lease agreement term	5 years

Segment Information - Additiona

Segment Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2015Segments
Segment Reporting [Abstract]
Number of operating segments	2

Segment Information - Summary o

Segment Information - Summary of Product Revenue by Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Summary of product revenue by segments
Revenues	$ 63,176	$ 54,043	$ 127,022	$ 111,272
Summary of Income (loss) from continuing operations by segments
Income (loss) from continuing operations	(1,499)	(2,180)	(2,614)	(3,618)
Summary of Depreciation and amortization by segments
Depreciation and amortization	3,309	2,878	6,564	5,768
Summary of product revenue by segments
Capital expenditures	676	1,337	1,946	2,925
Summary of assets by segments
Assets	116,653		116,653		$ 140,746
PFSweb
Summary of Income (loss) from continuing operations by segments
Income (loss) from continuing operations	(1,869)	(2,677)	(3,531)	(4,530)
Summary of Depreciation and amortization by segments
Depreciation and amortization	3,290	2,834	6,521	5,681
Summary of product revenue by segments
Capital expenditures	676	1,321	1,946	2,902
Business and Retail Connect
Summary of Income (loss) from continuing operations by segments
Income (loss) from continuing operations	370	497	917	912
Summary of Depreciation and amortization by segments
Depreciation and amortization	19	44	43	87
Summary of product revenue by segments
Capital expenditures		16		23
Operating Segments | PFSweb
Summary of product revenue by segments
Revenues	49,434	36,138	96,143	71,890
Summary of assets by segments
Assets	92,080		92,080		104,372
Operating Segments | Business and Retail Connect
Summary of product revenue by segments
Revenues	17,062	21,676	37,896	47,458
Summary of assets by segments
Assets	36,442		36,442		47,682
Eliminations
Summary of product revenue by segments
Revenues	(3,320)	$ (3,771)	(7,017)	$ (8,076)
Summary of assets by segments
Assets	$ (11,869)		$ (11,869)		$ (11,308)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Jun. 30, 2015	Apr. 30, 2010
Loss Contingencies [Line Items]
Issuance of performance bond	$ 1,300,000
Pending Litigation | eCost Product Sale
Loss Contingencies [Line Items]
eCOST deposit account		$ 620,000

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - Subsequent Event - USD ($)	Aug. 05, 2015	Aug. 03, 2015
Subsequent Event [Line Items]
Credit facility maximum borrowing capacity	$ 75,000,000
IBM Credit LLC | Supplies Distributors
Subsequent Event [Line Items]
Maximum financing receivable capacity through agreement thereafter		$ 13,000,000
Elimination of minimum shareholders’ equity required to maintain		$ 18,000,000
Revolving Loan Facility
Subsequent Event [Line Items]
Credit facility borrowed amount	30,000,000
Credit facility maximum borrowing capacity	$ 35,000,000
Credit facility maturity period	5 years
Credit facility collateral pledge percentage	65.00%
Term Loan Facility
Subsequent Event [Line Items]
Credit facility borrowed amount	$ 10,000,000
Credit facility maximum borrowing capacity	20,000,000
Cross View, Inc.
Subsequent Event [Line Items]
Consideration paid	$ 30,700,000
Consideration paid through common stock	553,223
Consideration paid through common stock, value	$ 7,200,000
Earn-out payments, minimum	0
Earn-out payments, maximum	$ 18,000,000
Cross View, Inc. | Restricted Shares | 2015 Earn-out Payments
Subsequent Event [Line Items]
Percentage of common stock Issuable	20.00%
Cross View, Inc. | Restricted Shares | 2016 Earn-out Payments
Subsequent Event [Line Items]
Percentage of common stock Issuable	15.00%
Cross View, Inc. | Restricted Shares | 2017 Earn-out Payments
Subsequent Event [Line Items]
Percentage of common stock Issuable	15.00%