In a peculiar twist of events Overstock Auctions CEO Patrick Byrne has made a deal with sellers by reducing the new MIM pricing strategy from Twice the opening bid to 1 1/2 times the opening bid.
Such pricing strategies may work for some sellers, however it will be unacceptable to others. Many of the merchants operate within certain Industry guidelines that prevent 50% profit margins due to market conditions and pre-existing contracts.
While Overstock believes such a move will bring stability to the marketplace, many business owners will be moving their customer bases elsewhere without pricing restrictions.
Implementing a policy such as this is considered by many to cross the "Just A Venue" line from the User Agreement and possibly lead to Federal Regulation of the Online Auction Industry.
Today's post to the Overstock Auctions message board also includes a poll requesting user input as what features users would prefer to see next, One day auctions (With seller restrictions), or possibly a Fixed price or Make It Mine Only format.
Overstock has yet to address features that were requested by users in 2004 such as the Blocked Bidders List, and the ability to respond to Ratings. Both of these features were promised in 2004 and have failed to be implemented by Overstock.
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