The Overstock Dance

In recent weeks Overstock Auctions has made multiple changes to the site under the guise of balancing the marketplace. According to Stormy's letter small merchants have left the site due to the vast number of listings submitted by large volume subscribers, so Overstock recently canceled subscription plans larger than 300 listings.

According to the same letter Stormy states "As you know, various subscription plans have been available to the selling community since March of this year. Since implementation, our average starting price per auction has increased dramatically. We are confident that this resulted from the fact that the subscription's blanket payment causes sellers to lose their incentive to offer low starting prices."

20 days later Patrick Byrne (CEO Overstock.com) and one Meghan Tuohig posted "Meghan and I just sent this: Subscription Plans are ending" which announces the elimination of the remaining subscription plans. Meghan had previously been introduced as a colleague of Stormy Simon who was/is VP of Overstock.com Auctions.

Overstock also implemented other changes to the site this weekend including disclaimers such as this one "Note: Overstock.com is not the seller of any of the items listed on Overstock.com Auctions". Similar disclaimers can be found throughout the site while viewing auctions in list view or individual listings.

Patrick Byrne also took this opportunity to inform site users about exciting changes they hope to have implemented by March of 2007. These changes include a classified ad platform, bid cancellation capability, and 1-day auctions.

For those who may not be aware of Overstock auctions history, or those who have forgotten, including Mr. Byrne. Overstock Auctions had previously promised site users the blocked bidders functionality including the ability to cancel bids on existing auctions in 2004 by Holly MacDonald-Korth the VP of Auctions at that time, and again by JT Stevens VP of Auctions after Holly's exodus.

1-Day Auctions was a site feature Overstock Auctions users had since the site launched until March 1, 2006. Now less than a year later Overstock will be reinstating the option of 1-day listings.

All of the recent site changes, including those in management, indicate a company without clear focus or direction. Overstock must regain focus and decide the ultimate goal of their Auctions department. Merchants of all sizes will continue to operate across multiple sales and marketing channels whether Overstock succeeds or fails.