Overstock Overview
Overstock isn’t a inventory web site, although it’s a web site with a inventory (NASDAQ: OSTK).
The positioning 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 the whole lot 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 first rate repute.
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 received its semi-misleading identify 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 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 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 obtainable on the location, and there are only a few critiques 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 worth factors and steep reductions on Overstock might give some consumers pause.
Usually once you see a product obtainable for considerably lower than on one other website you’d assume that there was some form of rip-off concerned.
Overstock is conscious about the significance of sustaining an excellent repute in such a aggressive house, nonetheless, so 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 worth factors and reductions.
They’re so happy with their low costs that they even put real-time worth 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.
Quite a lot of elements contribute to Overstock’s capacity 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, but it surely is sensible that they’d maintain them beneath wraps.
Overstock Buyer Expertise
Overstock and its cellular app are very simple to navigate.
Discovering the merchandise you’re in search of is fast and simple, and so they have the identical easy buying course of as outstanding rivals like Amazon.com.
Opinions for Overstock are just about what you’d anticipate: A ton of fine critiques which can be drowned out by the hordes of pissed off clients who had a nasty expertise.
The great 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 interchange 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 once you learn by sufficient of them.
A whole lot of consumers report battling 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 virtually all of their garments.
One other studies 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 entire.
So it looks like you’ll have a terrific expertise in the event you purchase from Overstock…
…so long as nothing goes unsuitable.
If one thing does go unsuitable, properly, it looks like you’re in for a battle.
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% enhance from the earlier yr.
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 yr.
Overstock employed 1,350 full-time workers as of December 21, 2021, and reported difficulties find the form of expertise it felt it wants shifting 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 by which Overstock operates could be very aggressive and can seemingly stay so for the foreseeable future. E-commerce is a crowded area, 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 assessment on one other well-liked e-commerce web site, StockX, which offers in footwear, electronics, collectibles, and extra.
The positioning Wayfair is of explicit concern for Overstock resulting from similarities between their product choices and enterprise fashions, and can seemingly 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 state of affairs stays steady sufficient to guarantee continued enterprise and modest earnings for no less than the following few years.
Conclusion
Overstock is an e-commerce website that focuses on house furnishings, décor, and numerous different product varieties, most of that are equipped at a lowered 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 attainable for all their merchandise.
Overstock works onerous to present each buyer a terrific expertise, although it looks like they should make investments extra of their customer support if they really need to obtain that objective.
Have you ever had any expertise with Overstock earlier than studying this assessment? Tell us within the feedback under!
