Big O or O No! The sinking of a ship

Overstock Auctions, AKA The Big O Auctions, appears to be launching signal flares as their experiment from the primordial "OCEAN" begins to take on water.

For weeks Overstock Auctions has made changes to the site with some changes directly impacting the bottom line of many Overstock sellers. Normally the 4Th Quarter is a time of glee for online merchants, however Overstock merchants have not been experiencing positive growth.

The hopes of a wondrous Christmas selling season on Overstock have been suppressed with a site makeover removing individual seller branding, followed by a growth stunting Make It Mine policy revision, and finally today the removal of 60% of the subscription pricing plans.

Stormy Simon appears to be understating the impact of such changes as merely "frustrating", while many sellers have already purchased Q1 & Q2 inventory for 2007 based on prepaid subscription plan limits. According to Stormy's letter any prepaid portions of cancelled subscriptions will be credited to sellers accounts, however this does not address those payments made by cash, or interest accrued on prepaid contracts that will remain unfulfilled.

Like so many shopping centers around the country, Overstock Auctions can only maintain traffic flow on a limited basis without the Anchor Merchants. Small sellers will see sales continue to dwindle as Anchor Merchants take their customer bases to other venues, or even their own web sites. Overstock will in essence sink back into the primordial "OCEAN" project from whence came, and once again sell their returns on eBay.

Another Open Letter from Overstock Auctions CEO Patrick Byrne

Today Overstock.com CEO Patrick Byrne has posted another open letter to sellers on Overstock Auctions addressing some issues and asking advice of the many skilled merchants among site users.

Patrick openly states "I was impatient with them about getting it live. But I really do recognize that many of you have also devoted time and capital to make this work, and in the future we can certainly give more warning. And no changes will be again announced in an imperious "effective immediately" way."

Later in the letter Patrick addresses "Forgiveness" stating "Tempers ran high on both sides. Some of the people who were most nasty to my colleagues have written elegant apologies, but have asked to be reinstated. I think it best to let everything simmer down for a few weeks, but we can revisit this subject with them in January. "

Patrick's general tone within the letter has returned to the community type of discussion from Overstock's early days, asking guidance and input from community users. While Patrick's letter may generate guidance from some, it is sure to draw criticism from those who offered Guidance several years ago regarding features Overstock promised sellers and has yet to deliver!