Overstock.com is not a stock website, although it is a stock website (NASDAQ: OSTK ).
The site has made a name for itself as an online mall that initially specialized in home decor, but has expanded to sell everything from jewelry to electronics to sporting goods.
The brand is known for its deep discounts and low prices compared to other retailers, and seems to have a pretty decent reputation.
But the question is: How good is Overstock.com really?
This Overstock.com review wants to tell you that.
The story of overstocking
Originally a company called Discounts Direct, Overstock got its semi-misleading name when it was bought by a man named Dr. Patrick M. Byrne in 1999.
Overstock did brisk business under — and perhaps despite — Byrne’s tenure, including its 2002 IPO and its first billion-dollar year in 2010.
By the time Byrne announced his resignation and claimed that the FBI framed him for an intimate relationship with a notorious Russian spy, Overstock had established itself as one of the leading online sources for closeout and discount home furnishings. .
The company is currently run by CEO Jonathan E. Johnson, as Byrne, its former boss, pursues a new career in peddling disinformation and ridiculous conspiracy theories.
Overstock product offering
Overstock.com started with furniture and home decor, but its catalog has grown in the 23 years since its founding.
In addition to its variety of indoor and outdoor furniture and decor, Overstock now sells bedding (including mattresses), appliances as small as blenders and as large as gas stoves, grills, trampolines, swings, tents, equipment of exercise and dozens of products. of other categories.
Some of Overstock’s inventory is manufactured specifically for the site, but most comes from the roughly 3,000 third-party sellers who partner with Overstock to sell goods on its site.
Most of Overstock’s revenue comes from selling third-party products on its site.
Overstock product quality
Most of Overstock’s inventory comes from reputable manufacturers and suppliers.
There are many name brand products available on the site and there are very few reviews or reports available that claim any of the products were fake or of lower quality than what you would find at another retailer.
The low prices and deep discounts on Overstock.com may give some shoppers pause.
Normally, when you see a product available for much less than elsewhere, you’d assume there’s been some kind of scam going on.
However, Overstock is well aware of the importance of maintaining a good reputation in such a competitive space, so they enforce strict quality control to ensure that no consumer receives counterfeit or defective products.
Excess inventory pricing
Overstock’s business model is based on the competitive advantage it derives from its low prices and discounts.
They’re so proud of their low prices that they even put real-time price checkers on their product pages to show how much you’d save if you bought from them instead of their competitors.
A number of factors contribute to Overstock’s ability to offer products at such low prices:
- They buy and sell liquidated inventory from other retailers
- Advanced logistics capabilities tailored for furniture and home furnishings
- The Club O loyalty program that increases customer retention
- Long-term mutually beneficial relationships with vendors and manufacturers
The company lists these factors as part of how it stays competitive as part of its latest 10-K filing with the SEC.
They aren’t exactly close to any of the details, but it makes sense that they would keep them under wraps.
Excess customer experience
Overstock.com and its mobile app are very easy to navigate.
Finding the products you’re looking for is quick and easy, and they have the same seamless checkout process as prominent rivals like Amazon.com.
Reviews on Overstock.com are pretty much what you’d expect: a bunch of good reviews drowned out by hordes of angry customers who had a bad experience.
The good reviews are very complimentary about how easy it was to buy and ship products to them, how the products arrived on time and in good condition, and occasionally that overstock quickly replaced a broken item. or damaged in transit.
Some of the negative reviews are your typical sour grapes, but there is a rather disturbing trend that emerges when you read enough of them.
Many buyers report having issues with Overstock’s customer service staff for returns, account credits, and (apparent) pricing and financing errors.
One reviewer reports that he received a rug from Overstock that was infested with moths that ended up destroying almost all of his clothes.
Another reports that a major purchase has been canceled without warning or notification.
Someone named Deepwoods said they paid for two chairs, received one, and never got cured.
So it sounds like you’ll have a great experience shopping at Overstock.com…
… as long as nothing goes wrong.
If something goes wrong, well, it looks like you’re in for a fight.
Taking stock of the existence of excess
Overstock’s OSTK stock is currently trading at $29.14, with a 52-week range of $24.69-$111.28.
The company reported global sales revenue of $2.76 billion in 2021, an increase of 10.53% over the previous year.
Its earnings have been on a slow but fairly steady upward trend over the past five years, apart from the painful 19.88% decline in 2019 over 2018.
The company’s 2021 gross revenue of $606.04 million represented a 10% increase from 2020, and its net income of $155.38 million was a 75.18% increase from the previous year.
As of December 21, 2021, Overstock employed 1,350 full-time employees and reported difficulty finding the kind of talent it believed it needed moving forward, especially when it comes to finding software engineers and technical staff.
The company reported hiring 177 new customer service or warehouse staff in 2021, in addition to 55 new customer service and warehouse staff.
The environment in which Overstock operates is highly competitive and will likely remain so for the foreseeable future. E-commerce is a crowded field and there are relatively low barriers to entry for new businesses trying to enter the market.
For example, we wrote a review on another popular e-commerce website, StockX, which deals in shoes, electronics, collectibles, and more.
The Wayfair site is of particular concern to Overstock because of the similarities between its product offerings and business models, and will likely remain a source of consternation in the future.
That said, the threats facing Overstock appear to be threatening its growth, not its survival.
The company’s financial situation remains stable enough to ensure business continuity and modest profits for at least the next few years.
conclusion
Overstock.com is an e-commerce site that focuses on home furnishings, decor, and a variety of other products, most of which are provided at a discounted price by its nearly 3,000 members.
The company leverages these relationships, its logistics network and other factors to get its prices as cheap as possible for all its products.
Overstock works hard to give every customer a great experience, but it seems like they need to invest more in their customer service if they really want to achieve that goal.
Have you had any experience with Overstock before reading this Overstock.com review? Let us know in the comments below!
