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 a web-based 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 thought for its deep reductions and low value factors in comparison with different retailers, and it appears to have a reasonably first rate repute.
However the query is: How good is Overstock.com actually?
This Overstock.com evaluation seeks to let you know simply that.
The Historical past of Overstock
Initially an organization named Reductions Direct, Overstock bought 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 12 months 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 gasoline 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 location, however most of it comes from the roughly 3,000 third-party distributors that accomplice with Overstock to promote items on their website.
Most of Overstock’s income comes from the sale of third-party items on their website.
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 opinions or experiences accessible claiming that any of the merchandise have been pretend 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 while you see a product accessible for considerably lower than on one other website you’d assume that there was some type of rip-off concerned.
Overstock is aware of the significance of sustaining repute in such a aggressive house, nevertheless, in order that they implement strict high quality management to verify no shopper receives counterfeit or faulty merchandise.
Overstock’s Costs
Overstock’s enterprise mannequin depends on the aggressive edge it will get from its low value factors and reductions.
They’re so happy with their low costs that they even put real-time value checkers on their product pages to indicate how a lot you’d save in the event you purchased from them as an alternative of their opponents.
Various elements contribute to Overstock’s potential to supply merchandise at such low costs:
They buy and promote liquidated stock from different retailersAdvanced logistics capabilities tailor-made for furnishings and residential furnishingsThe Membership O Loyalty Program that will increase buyer retentionLong-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, nevertheless it is sensible that they’d hold them below wraps.
Overstock Buyer Expertise
Overstock.com and its cell app are very straightforward 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 distinguished rivals like Amazon.com.
Critiques for Overstock.com are just about what you’d anticipate: A ton of excellent opinions which are drowned out by the hordes of pissed off prospects who had a foul 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 damaging opinions are your typical bitter grapes, however there’s a reasonably disturbing pattern that arises while you learn by means of sufficient of them.
A whole lot of consumers report scuffling with 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 an enormous buy being canceled with out warning or notification.
Somebody calling themselves Deepwoods stated they paid for 2 chairs, obtained one, and was by no means made complete.
So it looks like you’ll have an excellent expertise in the event you purchase from Overstock.com…
…so long as nothing goes incorrect.
If one thing does go incorrect, effectively, 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 general gross sales earnings of $2.76 billion in 2021, a ten.53% enhance from the earlier 12 months.
Its earnings have been on a gradual however pretty regular upward pattern during the last 5 years—apart from 2019’s painful 19.88% lower from 2018.
The agency’s 2021 gross earnings of $606.04 million represented a ten% enhance from 2020, and its internet earnings of $155.38 million was a rise of 75.18% over the earlier 12 months.
Overstock employed 1,350 full-time workers as of December 21, 2021, and reported difficulties find the type of expertise it felt it wants transferring ahead, notably on the subject of discovering software program engineers and technical employees.
The agency reported hiring 177 new non-customer service or warehouse employees in 2021 along with 55 new customer support and warehouse personnel.
The atmosphere wherein Overstock operates could be very aggressive and can possible stay so for the foreseeable future. E-commerce is a crowded subject, and there are comparatively low boundaries to entry for brand spanking new companies attempting to get into the market.
For instance, we wrote a evaluation on one other fashionable e-commerce web site, StockX, which offers in footwear, electronics, collectibles, and extra.
The location Wayfair is of specific concern for Overstock as a consequence of similarities between their product choices and enterprise fashions, and can possible stay a supply of consternation sooner or later.
That stated, the threats Overstock faces seem like threatening its progress, not its survival.
The corporate’s monetary state of affairs stays steady sufficient to guarantee continued enterprise and modest earnings for no less than the following few years.
Conclusion
Overstock.com is an e-commerce website that focuses on house furnishings, décor, and a lot of different product varieties, most of that are provided at a diminished 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 exhausting to present each buyer an excellent expertise, although it looks like they should make investments extra of their customer support if they really wish to obtain that objective.
Have you ever had any expertise with Overstock earlier than studying this Overstock.com evaluation? Tell us within the feedback beneath!
