Overstock.com isn’t 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 a web based outlet mall that originally specialised in residence décor however has expanded to promote all the pieces from jewellery to electronics and sporting items.
The model is thought for its deep reductions and low value factors in comparison with different retailers, and it appears to have a reasonably respectable status.
However the query is: How good is Overstock.com actually?
This Overstock.com evaluate seeks to let you know simply that.
The Historical past of Overstock
Initially an organization named Reductions Direct, Overstock obtained its semi-misleading identify when it was bought by a person named Dr. Patrick M. Byrne again in 1999.
Overstock did brisk enterprise below—and maybe despite—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 have interaction 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 residence furnishings.
The corporate is at present 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 massive as fuel ranges, grills, trampolines, swing units, tents, train tools, and merchandise from dozens of different classes.
A few of Overstock’s stock is manufactured particularly for the location, however most of it comes from the roughly 3,000 third-party distributors that associate 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 accessible on the location, and there are only a few critiques or experiences accessible claiming that any of the merchandise had been faux or decrease high quality than what you’d discover at one other retailer.
The low value factors and steep reductions on Overstock.com might give some consumers pause.
Usually whenever you see a product accessible for considerably lower than on one other web site you’d assume that there was some type of rip-off concerned.
Overstock is conscious about the significance of sustaining a great status in such a aggressive area, nevertheless, so that they implement strict high quality management to ensure no shopper receives counterfeit or faulty merchandise.
Overstock’s enterprise mannequin depends on the aggressive edge it will get from its low value factors and reductions.
They’re so pleased with their low costs that they even put real-time value checkers on their product pages to indicate how a lot you’d save should you purchased from them as a substitute of their rivals.
Quite a lot of elements contribute to Overstock’s skill 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-Okay report back to the SEC.
They aren’t precisely forthcoming on any of the specifics, nevertheless it is smart that they’d maintain them below wraps.
Overstock Buyer Expertise
Overstock.com and its cell app are very simple to navigate.
Discovering the merchandise you’re on the lookout for is fast and simple, they usually have the identical clean buying course of as outstanding rivals like Amazon.com.
Critiques for Overstock.com are just about what you’d anticipate: A ton of fine critiques which might be drowned out by the hordes of pissed off clients who had a nasty expertise.
The nice critiques are very complimentary about how simple 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 switch an merchandise that was damaged or broken in transit.
A few of the unfavorable critiques are your typical bitter grapes, however there’s a reasonably disturbing pattern that arises whenever you learn by means of sufficient of them.
Numerous consumers report combating Overstock customer support personnel for returns, account credit, and (obvious) pricing and financing errors.
One reviewer experiences receiving a rug from Overstock that was infested with moths which went on to destroy virtually all of their garments.
One other experiences a giant 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 important expertise should you purchase from Overstock.com…
…so long as nothing goes incorrect.
If one thing does go incorrect, properly, it looks like you’re in for a combat.
Taking Inventory of Overstock’s Inventory
Overstock’s inventory OSTK is at present 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% enhance from the earlier yr.
Its earnings have been on a gradual however pretty regular upward pattern during the last 5 years—aside from 2019’s painful 19.88% lower from 2018.
The agency’s 2021 gross revenue of $606.04 million represented a ten% enhance from 2020, and its web revenue of $155.38 million was a rise of 75.18% over the earlier yr.
Overstock employed 1,350 full-time workers as of December 21, 2021, and reported difficulties find the type of expertise it felt it wants shifting ahead, notably in relation 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 setting wherein Overstock operates may be very aggressive and can doubtless stay so for the foreseeable future. E-commerce is a crowded discipline, and there are comparatively low boundaries to entry for brand spanking new corporations attempting to get into the market.
For instance, we wrote a evaluate on one other in style e-commerce web site, StockX, which offers in footwear, electronics, collectibles, and extra.
The location Wayfair is of explicit concern for Overstock resulting from similarities between their product choices and enterprise fashions, and can doubtless stay a supply of consternation sooner or later.
That mentioned, the threats Overstock faces seem like threatening its development, not its survival.
The corporate’s monetary scenario 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 residence furnishings, décor, and numerous different product sorts, most of that are equipped at a lowered value by its virtually 3,000 companions.
The agency leverages these relationships, its logistics community, and different elements to make their value factors as low-cost as potential for all their merchandise.
Overstock works onerous to present each buyer an important 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 evaluate? Tell us within the feedback beneath!