Overstock's Results are In

Well folks it is official, Overstock.com ended the Fourth Quarter of 2006 at a significant loss according to today's financial reports.

Among today's flurry of activity are a few interesting figures for you auction sellers.

GMV was down by over 2 Million from the Fourth quarter of 2005. This drop in GMV is undoubtedly the result of the many changes swiftly implemented to the site during the shopping season.

Customer Acquisition costs for auctions was down from $6.73 per registrant in 2005 to only $0.59 per registrant in 2006. Such a significant drop in user acquisition costs probably explains the lack of traffic generated to the auction site.

According to recent message board posts on Overstock many site users have noticed the dramatic shift in bidder activity on the site. Many of the larger volume sellers have reduced listings counts or removed them entirely, while smaller volume merchants appear to be testing the waters.

If the Q4 results of 2006 are an indication of things to come for Overstock Auction sellers, then many will need to rethink their strategies on Overstock. For the savvy seller Overstock Auctions might be a goldmine, for others a minefield.