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[[Image:OverStock logo.gif|thumb|OverStock.com Logo]] |
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'''Overstock.com''' ({{nasdaq|OSTK}}) is an [[online]] [[retailer]] [[headquarters|headquartered]] in [[Cottonwood Heights, Utah]]. Nearby [[Salt Lake City, Utah|Salt Lake City]] is commonly listed as the company's location in corporate filings and news accounts. |
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company_name = Overstock.com, Inc. | |
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Overstock.com is a leading [[online]] [[E-commerce]] [[marketplace]], in which [[Internet]] users purchase [[surplus]] and returned, as well as new [[merchandise]]. Overstock.com was founded in 1997 under the name D2: Discounts Direct, and changed its name to Overstock.com in 1999. |
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company_logo = [[Image:Overstock_logo.gif]] | |
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Roughly half of Overstock.com [[merchandise]] is sold on behalf of third parties - which include [[manufacturers]], [[wholesalers]] and [[retailers]] - with standing [[business]] relationships with Overstock.com. The remainder is purchased by or [[manufactured]] specifically for Overstock.com. The [[company]] also purports to [[manage]] the [[inventory]] [[supply]] for other [[retailer]]s, and says that it enables small [[retailer]]s to purchase [[stock]] at [[wholesale|below-wholesale]] [[price]]s. |
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company_type = Public ([[NASDAQ]]: OSTK)| |
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Overstock.com also functions as a [[marketplace]] for new [[merchandise]] at cut-rate [[price]]s. |
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foundation = 1999| |
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The [[company|company's]] distinctive [[television advertisement]]s feature [[German people|German]] [[actress]] [[Sabine Ehrenfeld]]. |
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location = [[Salt Lake City, Utah]]| |
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Overstock.com's main rivals are [[Ebay|eBay]], [[Amazon.com]] Marketplace and [[Yahoo!|Yahoo! Auctions]]. |
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key_people = [[Patrick_Byrne|Patrick M. Byrne]], chairman/CEO<br />Jason Lindsey, president/COO| |
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In addition to its direct retail sales, Overstock.com has also offered [[online auction]]s on its website since September 24, 2004. The auction services include several features intended to enhance security, social networking and convenience. It has hosted charity auctions to benefit various causes. |
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num_employees = 620 full-time employees (2005)<br> The number of temporary, warehouse and customer service employees varies by season. | |
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==Anti short-selling campaign == |
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industry = Retail, Internet retail, e-commerce, online shopping, liquidation, Internet liquidation, auctions, online auctions, travel, social entrepreneurship| |
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The company has received attention, not all of it favorable, stemming from [[CEO]] [[Patrick Byrne]]'s battle against alleged [[naked short selling]] of his company's [[shares]]. Byrne has claimed that his company's shares have been attacked by "miscreants" in the [[stock market]]. Critics maintain that Byrne is seeking to divert attention from Overstock's share price declines and failure to turn a [[profit]]. |
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revenue = {{profit}} $804 million [[United States dollar|USD]] ([[2005]])| |
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Byrne has also sued a hedge fund, claiming it colluded with a research firm in short-selling the company. His claims have been vigorously denied. Naked short-selling was not alleged in that suit. [http://select.nytimes.com/gst/abstract.html?res=F30A16F8345A0C768EDDAB0894DE404482] |
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products = Shopping<br>Entertainment<br>Wholesale<br>Auctions<br>Travel<br>Social Entrepreneurship<br>| |
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Byrne's campaign has been widely criticized, with New York Times columnist Joseph Nocera saying: "Except for a few fellow-traveling Web sites, where Mr. Byrne is viewed as a heroic figure, most people who understand the issue or have looked into it think it's pretty bogus."[http://select.nytimes.com/2006/06/10/business/10nocera.html] |
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departments = Home & Garden<br>Jewelry & Watches<br>Sporting Goods<br>Entertainment<br>Electronics<br>Apparel<br>Worldstock (artisan handcrafts)<br>Gifts<br>Health & Wellness<br>Wholesale (bulk buys) |
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homepage = [http://www.overstock.com/ www.overstock.com] |
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}} |
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'''Overstock.com''' ({{nasdaq|OSTK}}) . is an online � closeout� retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. |
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==Origins== |
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<p>In [[1999]], investor [[Patrick Byrne]] reviewed a business plan for a company that sold excess and close-out merchandise to flea market vendors and small discount stores. He immediately realized the potential in liquidating excess inventory to consumers through the Internet. Up until then, consumers had relied upon far-off outlet centers with crowds and limited product selections for finding bargains. Meanwhile, adoption of online shopping was skyrocketing. [[Patrick|Patrick Byrne]] calculated that while the [[Internet]] would prove disastrously inefficient at competing with normal retail channels, it was tailor-made for liquidation due to the unique difficulties associated with liquidation of excess inventory in the off-line world. He invested $4 million in the company, which gave him a controlling interest, and shortly thereafter assumed the role of president and CEO. </p> |
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<p>That same year, with no outside funding, the Overstock.com website launched with the mission of being the premier company selling excess inventory through the [[Internet]]. Founded on the principles of value investing and fair dealing, Overstock.com has quickly become the on-line leader in a market valued at $80 billion in the [[United States]]. Since then, Overstock.com� s gross bookings (previously called gross merchandise sales or GMS) have blossomed from $1.8 million in [[1999]] to $868 million in 2005. </p> |
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<p>STORES Magazine, the official publication of the [[National Retail Federation]], recently announced that Overstock.com was named to the Hot 100 Retailers list. Ranked second in the nation, Overstock.com was the only pure-play [[Internet]] retailer to make the top 10.</p> |
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==Business model== |
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[[Image:OSscreenshot2.png|thumb|right|250px|Screenshot of Overstock.com Home Page]] |
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<p>Before Overstock.com brought liquidation to the Internet, manufacturers and retailers often had no control over the final distribution of their products once they reached the � gray market� and thus ran the risk of diluting their brand. For example, if a discontinued laptop computer appeared at a steep discount in a retail store, it may discourage customers from buying newer, more expensive models of that brand. </p> |
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<p>Overstock.com provides retail suppliers with an alternative liquidation distribution channel to sell both large and small quantities of excess and close-out inventory quickly, without disrupting sales by polluting traditional channels. And in turn, Overstock.com gives consumers quick and convenient access to high-quality, brand-name merchandise at discount prices with an online best price guarantee. </p> |
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<p>Since founding the company, Patrick has successfully applied and expanded this business model to benefit small business owners, the auction community, travel industry and artisans in developing countries (see department descriptions below). </p> |
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<p>In recognition of Patrick� s entrepreneurial prowess, Fortune magazine deemed him � the Renaissance man of e-commerce� , Business Week named him to its list of � the 25 most influential people in e-Business� , and Ernst & Young awarded Patrick an � Entrepreneur of the Year� award in the category of Lifetime Achievement.</p> |
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==Products and Departments== |
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===Shopping=== |
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<p>Overstock� s shopping Web site sells name-brands at up to 70% or more off the list prices with an online best price guarantee and $2.95 shipping, no matter the size or quantity of the products ordered. </p> |
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<p>Departments on the shopping site include: |
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*Home & Garden |
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*Jewelry & Watches |
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*Sporting Goods |
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*Entertainment |
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*Electronics |
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*Apparel |
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*Worldstock (artisan handcrafts) |
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*Gifts |
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*Health & Wellness |
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*Wholesale (bulk buys) |
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*Travel |
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</p> |
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===Books, Music, Video and Games=== |
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<p>Overstock.com offers more than 725,000 titles of books, CDs, DVDs, video games and software on its Entertainment tab, including all of the latest releases across all of these categories. The company� s goal is to price this category lower than other well known online book and media retailers, and standard shipping ranges from $1.40 to a maximum of $2.95, depending on the number of items ordered. </p> |
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===Club O Membership Club=== |
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<p>For an annual membership fee of $29.95, Overstock.com� s � Club O� membership extends additional savings to frequent customers, including: |
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*$1 shipping |
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*an additional 5% off every Overstock.com purchase* |
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*an additional 5% off listing and closing fees on Overstock.com Auctions |
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*access to Club O customer service agents |
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*special promotions |
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*with the exception of purchases made from the travel department, event tickets, books, magazines, videos, cds, dvds, video games, software and other media items |
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</p> |
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===Wholesale=== |
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Formerly Overstock� s business-to-business site and Club-O Gold membership club, its Wholesale department gives small-to medium-sized businesses and entrepreneurs the opportunity to purchase in quantity, or bulk, for substantial discounts. These business owners can leverage Overstock.com� s buying power to achieve prices only available to the big box stores, including but not limited to restaurant, janitorial, medical and office supplies. |
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===Auctions=== |
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<p>Launched in fall 2004, Overstock.com Auctions is an online community of auction buyers and sellers. The site offers sellers low fees, a simple listing process and the Trusted Merchant Program"!, which enables customers to bid with confidence.</p> |
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<p>In its first year of operation, Overstock.com Auctions drove nearly $30 million in gross merchandise volume, more than 11 million unique listings and well over half a million registered users. </p> |
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<p>Its high-profile auctions have included: two VIP tickets to the opening of Jennifer Lopez� s first U.S. Marshall Field� s boutique; a rare, 23-carat natural yellow diamond; the 2005 Chrysler Crossfire Roadster won by � The Apprentice� Bill Rancic; Frederick� s of Hollywood celebrity-designed corsets; classic rock star memorabilia donated for Earth Day; and NASCAR memorabilia donated for Hurricane Katrina relief efforts.</p> |
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===Travel=== |
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With a mission to negotiate the best deals on behalf of consumers, Overstock.com leaves no stone unturned, which includes travel. In July 2005, Overstock.com acquired privately-held Ski West, Inc., a rapidly growing, profitable on-line travel company. Today, O Travel uses proprietary technology to provide easy consumer access to a large, fragmented, hard-to-find inventory of lodging, vacation, cruises and transportation bargains. The travel products are primarily in popular ski areas in the U.S. and Canada, but have expanded into warm destinations such as the Caribbean and Mexico and cruises as well. |
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===Social Entrepreneurship - Worldstock=== |
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<p>As an academic who has studied and observed poverty issues firsthand, Overstock� s CEO Patrick Byrne recognized that the enormous problems faced by artisans in underdeveloped countries resemble the problems of the liquidation market in the United States. That is, the output of artisans comes into the world through highly fractured supply channels of numerous, scattered producers, in lots too small to be moved efficiently through the mechanisms of mass retail. Patrick realized that the systems and infrastructure Overstock.com had developed for liquidating excess inventory was precisely what was needed to connect artisans and American consumers on a large scale. </p> |
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<p>In fall 2001, he created Overstock� s social entrepreneurship program for impoverished artisans called Worldstock, which enables them to sell their traditional crafts at wages that support an increased quality of life for them, their families and their communities. The department� s mission is best expressed in the famous Chinese proverb, "Give a man a fish and you feed him for a day. Teach a man how to fish and you feed him for a lifetime.� </p> |
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<p>All of Worldstock� s products are handmade and sustainable, meaning they support the longevity of the people, culture and natural resources that create them, and Worldstock prices its products affordably, so that the business can grow and spread to as many underprivileged people as possible. Its pricing model covers costs and a small net profit to ensure a maximum financial return to every artisan and future investment in new artisans. </p> |
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==Customer Care== |
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Overstock.com provides three options for customer care: a toll-free phone number (1-800-The-BIG-O), email and live chat. Customers can reach a representative |
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24 hours a day, seven days a week, 365 days a year. |
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==Fulfillment and Warehousing== |
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Overstock.com has three fulfillment centers in the United States (two are located in Salt Lake City, Utah and one is located in Plainfield, Indiana), all of which support the company� s famous $2.95 standard delivery for everything from a diamond ring to a sofa. |
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==Fun Facts== |
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<p>Up to 15 million people visit Overstock.com every month.</p> |
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<p>Patrick Byrne got turned down by more than 50 venture capitalists in 1999 when he sought funding for Overstock.com at the peak of the dotcom boom. Ironically, Overstock.com was one of the few companies to benefit from the collapse of the dotcom industry and ended up liquidating inventories from many of those venture capitalists� e-commerce investments, including Adornis.com, BabyStripes.com, eHats.com, jewelry.com, Miadora.com and ToyTime.com.</p> |
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<p>The number of products Overstock.com offers has grown from less than 100 in 1999 to more than 62,000 non-BMV (Books, Music, Video and Interactive Games) products and approximately 725,000 BMV products.</p> |
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<p>The star of Overstock.com� s TV commercials, German model Sabine Ehrenfeld, has developed a cult following of men who are fascinated by her accent, but the majority of people erroneously guess its origin. </p> |
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In May 2006, Overstock.com received a subpoena from the [[Securities and Exchange Commission|SEC]], requesting information about the company's accounting policies as well as its communications regarding [[Naked short selling|naked short selling]]. |
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[http://biz.yahoo.com/prnews/060509/latu132.html?.v=30 |
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Though Byrne said in a [[press release]] that he "celebrated" receiving the [[subpoena]], critics of the company viewed it as an indication of Overstock's mounting troubles. |
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[[Herb Greenberg]], a journalist with Marketwatch.com and CNBC, termed the response "feeble spin control."[http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6EF94507%2D4CC9%2D4F5E%2DA085%2DC61ED79A5B5D%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo] |
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== External links == |
== External links == |
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* [http://www.overstock.com Overstock.com] |
* [http://www.overstock.com Overstock.com] |
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* [http://wallstfolly.typepad.com/wallstfolly/2006/02/articles_wall_s_29.html New York Times article on anti-short selling campaign] |
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* [http://select.nytimes.com/2006/06/10/business/10nocera.html New York Times article on anti-short selling campaign] |
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* [http://www.auctions.overstock.com Overstock.com Auctions] |
* [http://www.auctions.overstock.com Overstock.com Auctions] |
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* [http://travel.overstock.com Overstock.com Travel] |
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[[Category:Commerce websites]] |
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[[Category:Companies based in Utah]] |
[[Category:Companies based in Utah]] |
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[[Category:Companies listed on NASDAQ]] |
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[[Category:Online retail companies of the United States]] |
[[Category:Online retail companies of the United States]] |
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Revision as of 21:36, 7 September 2006
| File:Overstock logo.gif | |
| Company type | Public (NASDAQ: OSTK) |
|---|---|
| Industry | Retail, Internet retail, e-commerce, online shopping, liquidation, Internet liquidation, auctions, online auctions, travel, social entrepreneurship |
| Founded | 1999 |
| Headquarters | Salt Lake City, Utah |
Key people | Patrick M. Byrne, chairman/CEO Jason Lindsey, president/COO |
| Products | Shopping Entertainment Wholesale Auctions Travel Social Entrepreneurship |
| Revenue |  $804 million USD (2005) |
Number of employees | 620 full-time employees (2005) The number of temporary, warehouse and customer service employees varies by season. |
Overstock.com (Nasdaq: OSTK) . is an online � closeout� retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel.
Origins
In 1999, investor Patrick Byrne reviewed a business plan for a company that sold excess and close-out merchandise to flea market vendors and small discount stores. He immediately realized the potential in liquidating excess inventory to consumers through the Internet. Up until then, consumers had relied upon far-off outlet centers with crowds and limited product selections for finding bargains. Meanwhile, adoption of online shopping was skyrocketing. Patrick Byrne calculated that while the Internet would prove disastrously inefficient at competing with normal retail channels, it was tailor-made for liquidation due to the unique difficulties associated with liquidation of excess inventory in the off-line world. He invested $4 million in the company, which gave him a controlling interest, and shortly thereafter assumed the role of president and CEO.
That same year, with no outside funding, the Overstock.com website launched with the mission of being the premier company selling excess inventory through the Internet. Founded on the principles of value investing and fair dealing, Overstock.com has quickly become the on-line leader in a market valued at $80 billion in the United States. Since then, Overstock.com� s gross bookings (previously called gross merchandise sales or GMS) have blossomed from $1.8 million in 1999 to $868 million in 2005.
STORES Magazine, the official publication of the National Retail Federation, recently announced that Overstock.com was named to the Hot 100 Retailers list. Ranked second in the nation, Overstock.com was the only pure-play Internet retailer to make the top 10.
Business model
Before Overstock.com brought liquidation to the Internet, manufacturers and retailers often had no control over the final distribution of their products once they reached the � gray market� and thus ran the risk of diluting their brand. For example, if a discontinued laptop computer appeared at a steep discount in a retail store, it may discourage customers from buying newer, more expensive models of that brand.
Overstock.com provides retail suppliers with an alternative liquidation distribution channel to sell both large and small quantities of excess and close-out inventory quickly, without disrupting sales by polluting traditional channels. And in turn, Overstock.com gives consumers quick and convenient access to high-quality, brand-name merchandise at discount prices with an online best price guarantee.
Since founding the company, Patrick has successfully applied and expanded this business model to benefit small business owners, the auction community, travel industry and artisans in developing countries (see department descriptions below).
In recognition of Patrick� s entrepreneurial prowess, Fortune magazine deemed him � the Renaissance man of e-commerce� , Business Week named him to its list of � the 25 most influential people in e-Business� , and Ernst & Young awarded Patrick an � Entrepreneur of the Year� award in the category of Lifetime Achievement.
Products and Departments
Shopping
Overstock� s shopping Web site sells name-brands at up to 70% or more off the list prices with an online best price guarantee and $2.95 shipping, no matter the size or quantity of the products ordered.
Departments on the shopping site include:
- Home & Garden
- Jewelry & Watches
- Sporting Goods
- Entertainment
- Electronics
- Apparel
- Worldstock (artisan handcrafts)
- Gifts
- Health & Wellness
- Wholesale (bulk buys)
- Travel
Books, Music, Video and Games
Overstock.com offers more than 725,000 titles of books, CDs, DVDs, video games and software on its Entertainment tab, including all of the latest releases across all of these categories. The company� s goal is to price this category lower than other well known online book and media retailers, and standard shipping ranges from $1.40 to a maximum of $2.95, depending on the number of items ordered.
Club O Membership Club
For an annual membership fee of $29.95, Overstock.com� s � Club O� membership extends additional savings to frequent customers, including:
- $1 shipping
- an additional 5% off every Overstock.com purchase*
- an additional 5% off listing and closing fees on Overstock.com Auctions
- access to Club O customer service agents
- special promotions
- with the exception of purchases made from the travel department, event tickets, books, magazines, videos, cds, dvds, video games, software and other media items
Wholesale
Formerly Overstock� s business-to-business site and Club-O Gold membership club, its Wholesale department gives small-to medium-sized businesses and entrepreneurs the opportunity to purchase in quantity, or bulk, for substantial discounts. These business owners can leverage Overstock.com� s buying power to achieve prices only available to the big box stores, including but not limited to restaurant, janitorial, medical and office supplies.
Auctions
Launched in fall 2004, Overstock.com Auctions is an online community of auction buyers and sellers. The site offers sellers low fees, a simple listing process and the Trusted Merchant Program"!, which enables customers to bid with confidence.
In its first year of operation, Overstock.com Auctions drove nearly $30 million in gross merchandise volume, more than 11 million unique listings and well over half a million registered users.
Its high-profile auctions have included: two VIP tickets to the opening of Jennifer Lopez� s first U.S. Marshall Field� s boutique; a rare, 23-carat natural yellow diamond; the 2005 Chrysler Crossfire Roadster won by � The Apprentice� Bill Rancic; Frederick� s of Hollywood celebrity-designed corsets; classic rock star memorabilia donated for Earth Day; and NASCAR memorabilia donated for Hurricane Katrina relief efforts.
Travel
With a mission to negotiate the best deals on behalf of consumers, Overstock.com leaves no stone unturned, which includes travel. In July 2005, Overstock.com acquired privately-held Ski West, Inc., a rapidly growing, profitable on-line travel company. Today, O Travel uses proprietary technology to provide easy consumer access to a large, fragmented, hard-to-find inventory of lodging, vacation, cruises and transportation bargains. The travel products are primarily in popular ski areas in the U.S. and Canada, but have expanded into warm destinations such as the Caribbean and Mexico and cruises as well.
Social Entrepreneurship - Worldstock
As an academic who has studied and observed poverty issues firsthand, Overstock� s CEO Patrick Byrne recognized that the enormous problems faced by artisans in underdeveloped countries resemble the problems of the liquidation market in the United States. That is, the output of artisans comes into the world through highly fractured supply channels of numerous, scattered producers, in lots too small to be moved efficiently through the mechanisms of mass retail. Patrick realized that the systems and infrastructure Overstock.com had developed for liquidating excess inventory was precisely what was needed to connect artisans and American consumers on a large scale.
In fall 2001, he created Overstock� s social entrepreneurship program for impoverished artisans called Worldstock, which enables them to sell their traditional crafts at wages that support an increased quality of life for them, their families and their communities. The department� s mission is best expressed in the famous Chinese proverb, "Give a man a fish and you feed him for a day. Teach a man how to fish and you feed him for a lifetime.�
All of Worldstock� s products are handmade and sustainable, meaning they support the longevity of the people, culture and natural resources that create them, and Worldstock prices its products affordably, so that the business can grow and spread to as many underprivileged people as possible. Its pricing model covers costs and a small net profit to ensure a maximum financial return to every artisan and future investment in new artisans.
Customer Care
Overstock.com provides three options for customer care: a toll-free phone number (1-800-The-BIG-O), email and live chat. Customers can reach a representative
24 hours a day, seven days a week, 365 days a year.
Fulfillment and Warehousing
Overstock.com has three fulfillment centers in the United States (two are located in Salt Lake City, Utah and one is located in Plainfield, Indiana), all of which support the company� s famous $2.95 standard delivery for everything from a diamond ring to a sofa.
Fun Facts
Up to 15 million people visit Overstock.com every month.
Patrick Byrne got turned down by more than 50 venture capitalists in 1999 when he sought funding for Overstock.com at the peak of the dotcom boom. Ironically, Overstock.com was one of the few companies to benefit from the collapse of the dotcom industry and ended up liquidating inventories from many of those venture capitalists� e-commerce investments, including Adornis.com, BabyStripes.com, eHats.com, jewelry.com, Miadora.com and ToyTime.com.
The number of products Overstock.com offers has grown from less than 100 in 1999 to more than 62,000 non-BMV (Books, Music, Video and Interactive Games) products and approximately 725,000 BMV products.
The star of Overstock.com� s TV commercials, German model Sabine Ehrenfeld, has developed a cult following of men who are fascinated by her accent, but the majority of people erroneously guess its origin.