Overstock.com will not be a inventory web site, although it’s a web site with a inventory (NASDAQ: OSTK).
The location has made a reputation for itself as one thing like an internet outlet mall that originally specialised in house décor however has expanded to promote all the pieces from jewellery to electronics and sporting items.
The model is understood for its deep reductions and low worth factors in comparison with different retailers, and it appears to have a fairly respectable repute.
However the query is: How good is Overstock.com actually?
This Overstock.com overview seeks to inform you simply that.
The Historical past of Overstock
Initially an organization named Reductions Direct, Overstock received its semi-misleading title when it was bought by a person named Dr. Patrick M. Byrne again in 1999.
Overstock did brisk enterprise underneath—and maybe regardless of—Byrne’s tenure, together with going public in 2002 and reporting its first billion-dollar yr in 2010.
By the point Byrne introduced his resignation and claimed the FBI made him interact in an intimate relationship with a infamous Russian spy, Overstock had established itself as one of many premier on-line sources for closeout and low cost house furnishings.
The corporate is at the moment headed by CEO Jonathan E. Johnson as Byrne, its former head, pursues a brand new profession in peddling misinformation and ridiculous conspiracy theories.
Overstock’s Product Providing
Overstock.com began with furnishings and residential décor, however its catalog has ballooned within the 23 years because it was based.
Along with their array of inside and exterior furnishings and décor, Overstock now sells bedding (together with mattresses), home equipment as small as blenders and as giant as fuel ranges, grills, trampolines, swing units, tents, train gear, and merchandise from dozens of different classes.
A few of Overstock’s stock is manufactured particularly for the positioning, however most of it comes from the roughly 3,000 third-party distributors that accomplice with Overstock to promote items on their web site.
Most of Overstock’s income comes from the sale of third-party items on their web site.
Overstock’s Product High quality
Most of Overstock’s stock comes from respected producers and suppliers.
There are many name-brand items out there on the positioning, and there are only a few opinions or reviews out there claiming that any of the merchandise had been pretend or decrease high quality than what you’d discover at one other retailer.
The low worth factors and steep reductions on Overstock.com might give some patrons pause.
Usually once you see a product out there for considerably lower than on one other web site you’d assume that there was some form of rip-off concerned.
Overstock is aware of the significance of sustaining an excellent repute in such a aggressive house, nonetheless, so that they implement strict high quality management to ensure no client receives counterfeit or faulty merchandise.
Overstock’s enterprise mannequin depends on the aggressive edge it will get from its low worth factors and reductions.
They’re so pleased with their low costs that they even put real-time worth checkers on their product pages to point out how a lot you’d save if you happen to purchased from them as a substitute of their rivals.
Plenty of elements contribute to Overstock’s means to supply merchandise at such low costs:
- They buy and promote liquidated stock from different retailers
- Superior logistics capabilities tailor-made for furnishings and residential furnishings
- The Membership O Loyalty Program that will increase buyer retention
- Lengthy-term mutually helpful relationships with distributors and producers
The agency lists these elements as a part of the way it stays aggressive as a part of its newest 10-Ok report back to the SEC.
They aren’t precisely forthcoming on any of the specifics, but it surely is smart that they’d hold them underneath wraps.
Overstock Buyer Expertise
Overstock.com and its cellular app are very straightforward to navigate.
Discovering the merchandise you’re searching for is fast and straightforward, they usually have the identical easy buying course of as outstanding rivals like Amazon.com.
Critiques for Overstock.com are just about what you’d count on: A ton of fine opinions which might be drowned out by the hordes of pissed off prospects who had a nasty expertise.
The nice opinions are very complimentary about how straightforward it was to purchase and have merchandise shipped to them, how the merchandise arrived on time and in good situation, and infrequently that Overstock was fast to exchange an merchandise that was damaged or broken in transit.
Among the adverse opinions are your typical bitter grapes, however there’s a reasonably disturbing pattern that arises once you learn by means of sufficient of them.
Quite a lot of patrons report scuffling with Overstock customer support personnel for returns, account credit, and (obvious) pricing and financing errors.
One reviewer reviews receiving a rug from Overstock that was infested with moths which went on to destroy virtually all of their garments.
One other reviews an enormous buy being canceled with out warning or notification.
Somebody calling themselves Deepwoods mentioned they paid for 2 chairs, acquired one, and was by no means made complete.
So it looks like you’ll have an ideal expertise if you happen to purchase from Overstock.com…
…so long as nothing goes incorrect.
If one thing does go incorrect, nicely, it looks like you’re in for a struggle.
Taking Inventory of Overstock’s Inventory
Overstock’s inventory OSTK is at the moment buying and selling at $29.14, with its 52-week vary being between $24.69 and $111.28.
The corporate posted total gross sales earnings of $2.76 billion in 2021, a ten.53% improve from the earlier yr.
Its earnings have been on a sluggish however pretty regular upward pattern over the past 5 years—apart from 2019’s painful 19.88% lower from 2018.
The agency’s 2021 gross revenue of $606.04 million represented a ten% improve from 2020, and its internet revenue of $155.38 million was a rise of 75.18% over the earlier yr.
Overstock employed 1,350 full-time staff as of December 21, 2021, and reported difficulties to find the form of expertise it felt it wants transferring ahead, significantly with regards to discovering software program engineers and technical workers.
The agency reported hiring 177 new non-customer service or warehouse workers in 2021 along with 55 new customer support and warehouse personnel.
The surroundings wherein Overstock operates may be very aggressive and can probably stay so for the foreseeable future. E-commerce is a crowded subject, and there are comparatively low limitations to entry for brand new corporations making an attempt to get into the market.
For instance, we wrote a overview on one other well-liked e-commerce web site, StockX, which offers in sneakers, electronics, collectibles, and extra.
The location Wayfair is of specific concern for Overstock because of similarities between their product choices and enterprise fashions, and can probably stay a supply of consternation sooner or later.
That mentioned, the threats Overstock faces look like threatening its progress, not its survival.
The corporate’s monetary state of affairs stays secure sufficient to guarantee continued enterprise and modest income for at the very least the following few years.
Overstock.com is an e-commerce web site that focuses on house furnishings, décor, and various different product varieties, most of that are provided at a decreased worth by its virtually 3,000 companions.
The agency leverages these relationships, its logistics community, and different elements to make their worth factors as low cost as doable for all their merchandise.
Overstock works exhausting to offer each buyer an ideal expertise, although it looks like they should make investments extra of their customer support if they really need to obtain that aim.
Have you ever had any expertise with Overstock earlier than studying this Overstock.com overview? Tell us within the feedback under!