March 28, 2023

Overstock 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 house décor however has expanded to promote the whole lot from jewellery to electronics and sporting items.

The model is understood for its deep reductions and low value factors in comparison with different retailers, and it appears to have a fairly first rate status.

However the query is: How good is Overstock actually?

This Overstock assessment seeks to inform you simply that.

The Historical past of Overstock

Initially an organization named Reductions Direct, Overstock acquired its semi-misleading title when it was bought by a person named Dr. Patrick M. Byrne again in 1999.

Overstock did brisk enterprise beneath—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 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 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 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 gasoline 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 positioning, however most of it comes from the roughly 3,000 third-party distributors that companion 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 obtainable on the positioning, and there are only a few evaluations or studies obtainable 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 could give some consumers pause.

Usually whenever you see a product obtainable 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 a great status in such a aggressive area, nonetheless, in order that they implement strict high quality management to ensure 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 when you purchased from them as an alternative of their rivals.

Quite a lot of components contribute to Overstock’s means to supply merchandise at such low costs:

  1. They buy and promote liquidated stock from different retailers
  2. Superior logistics capabilities tailor-made for furnishings and residential furnishings
  3. The Membership O Loyalty Program that will increase buyer retention
  4. Lengthy-term mutually helpful relationships with distributors and producers

The agency lists these components 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 hold them beneath wraps.

Overstock Buyer Expertise

Overstock and its cell app are very simple to navigate.

Discovering the merchandise you’re searching for is fast and simple, they usually have the identical easy buying course of as distinguished rivals like Amazon.com.

Opinions for Overstock are just about what you’d anticipate: A ton of excellent evaluations which are drowned out by the hordes of pissed off prospects who had a nasty expertise.

The great evaluations 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 interchange an merchandise that was damaged or broken in transit.

A few of the detrimental evaluations are your typical bitter grapes, however there’s a reasonably disturbing pattern that arises whenever you learn by way of sufficient of them.

A variety of consumers report combating Overstock customer support personnel for returns, account credit, and (obvious) pricing and financing errors.

One reviewer studies receiving a rug from Overstock that was infested with moths which went on to destroy nearly all of their garments.

One other studies a giant buy being canceled with out warning or notification.

Somebody calling themselves Deepwoods stated they paid for 2 chairs, acquired one, and was by no means made complete. 

So it looks as if you’ll have an important expertise when you purchase from Overstock…

…so long as nothing goes fallacious.

If one thing does go fallacious, effectively, it looks as if you’re in for a combat.

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 gradual however pretty regular upward pattern over the past 5 years—aside from 2019’s painful 19.88% lower from 2018.

The agency’s 2021 gross earnings of $606.04 million represented a ten% improve from 2020, and its internet earnings 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 to find the type of expertise it felt it wants transferring ahead, significantly on the subject of 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 obstacles to entry for brand spanking new companies making an attempt to get into the market.

For instance, we wrote a assessment 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 because of similarities between their product choices and enterprise fashions, and can probably stay a supply of consternation sooner or later.

That stated, the threats Overstock faces look like threatening its progress, not its survival.

The corporate’s monetary scenario stays secure sufficient to guarantee continued enterprise and modest earnings for at the least the subsequent few years.

Conclusion

Overstock is an e-commerce website that focuses on house furnishings, décor, and a variety of different product varieties, most of that are equipped at a diminished value by its nearly 3,000 companions.

The agency leverages these relationships, its logistics community, and different components to make their value factors as low cost as attainable for all their merchandise.

Overstock works exhausting to present each buyer an important expertise, although it looks as if they should make investments extra of their customer support if they really wish to obtain that aim.

Have you ever had any expertise with Overstock earlier than studying this assessment? Tell us within the feedback under!