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.
Showing posts with label Overstock Auction. Show all posts
Showing posts with label Overstock Auction. Show all posts
Saturday, December 9, 2006
Tuesday, December 5, 2006
Ebay reorganizing and Overstock Recycling
eBay North America offices in San Jose will become the new home of one very well known European executive Philipp Justus in the coming months. Philipp has done wonders for the eBay Germany site and many sellers believe a much brighter future is ahead in the US eBay.com Marketplace.
Philipp will head up a special team, reporting directly to eBay North America President Bill Cobb. Philipp's team will focus on the re balancing efforts at eBay core Auctions.
Similar to eBay's move of reorganizing Overstock Auctions has apparently began a recycling program, launched with a full banner ad for (You Guessed It) Pre-Chewed Gum. According to the Listing this is no ordinary pre-chewed gum, but that of Guy Yovan of ivillage Live complete with a letter of Authenticity. Bidding has already been vigorous with 23 bids from 3 Unique Users, two of which are from Salt Lake City! I guess Guy has a Fan club in Salt Lake with at least two members.
Will the Chewing gum loose it flavor on the Overstock Homepage Over night, or will it be the High Profile Auction that Determines Overstock's dominance in the Online Auction Industry.
Philipp will head up a special team, reporting directly to eBay North America President Bill Cobb. Philipp's team will focus on the re balancing efforts at eBay core Auctions.
Similar to eBay's move of reorganizing Overstock Auctions has apparently began a recycling program, launched with a full banner ad for (You Guessed It) Pre-Chewed Gum. According to the Listing this is no ordinary pre-chewed gum, but that of Guy Yovan of ivillage Live complete with a letter of Authenticity. Bidding has already been vigorous with 23 bids from 3 Unique Users, two of which are from Salt Lake City! I guess Guy has a Fan club in Salt Lake with at least two members.
Will the Chewing gum loose it flavor on the Overstock Homepage Over night, or will it be the High Profile Auction that Determines Overstock's dominance in the Online Auction Industry.
Monday, December 4, 2006
Merchants or Auction Sellers
Michael Donahue of EAuctionAir.com gave listeners a reality check on last nights show while discussing the recent changes at Overstock.com Auctions. While mistakes were made in the process of implementing recent changes, change in itself is good for online commerce. Merchants adapt and Overcome any situation and work within the confines of the venue.
With that in mind are you a Merchant? or just another Auction Seller?
If you are a Merchant this is a good opportunity to rethink your business plan and expand your business across multiple venues. Reach out and find the products your existing customer base demands, and perhaps a few new products that you believe your customers would be interested in.
Try something new and don't be afraid to take a chance. Many Millionaires have been made strictly because of chance.
With that in mind are you a Merchant? or just another Auction Seller?
If you are a Merchant this is a good opportunity to rethink your business plan and expand your business across multiple venues. Reach out and find the products your existing customer base demands, and perhaps a few new products that you believe your customers would be interested in.
Try something new and don't be afraid to take a chance. Many Millionaires have been made strictly because of chance.
Sunday, December 3, 2006
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!
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!
Online Sellers Beware! Speed Bumps Ahead
As sales roll full steam into the Christmas Rush, online sellers should heed the cautionary road signs and route markers indicating "Speed Bumps Ahead". According to all sources there are many changes coming that will slow growth, reduce profit margins, and force many out of online sales all together.
Through planning and good marketing many sellers will be able to proceed without disruption. Staying up to date on current issues, placing cash back into depleted reserves and operating funds, and preparing back up plans will help in the coming months.
Upcoming Changes impacting online sales
Proposed 2007 USPS Rate Increases
2007 UPS Rate Increases take effect January 1, 2007. According to the UPS communication received November 17, 2006 rates are scheduled to increase as follows:
"UPS Ground service to commercial and residential destinations will have the same transportation charge, based on the lower commercial rate, and will increase 4.9%. The Ground residential surcharge that was previously built into the Ground residential rates will now appear as a separate charge on your UPS invoice. Air and International services will increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2% reduction in the air fuel surcharge. In addition, the Delivery Area Surcharge and Residential Surcharge will both increase by $0.10."
Increased costs and decreased exposure across all venues are expected to continue in 2007. eBay has already announced plans to continue the "Disadvantaged" idea and decrease exposure to stores even more. To support continued revenue growth while their market declines eBay will have no other alternative than to raise fees again. Other venues are tossing around similar ideas.
Increased costs of packaging and shipping supplies are expected to rise between 3%-5% over the next 12 calender months to keep up with production cost increases. Given the increases in 2006 caused by Katrina and Petroleum costs the 3%-5% increase may be an underestimated figure.
Through planning and good marketing many sellers will be able to proceed without disruption. Staying up to date on current issues, placing cash back into depleted reserves and operating funds, and preparing back up plans will help in the coming months.
Upcoming Changes impacting online sales
Proposed 2007 USPS Rate Increases
2007 UPS Rate Increases take effect January 1, 2007. According to the UPS communication received November 17, 2006 rates are scheduled to increase as follows:
"UPS Ground service to commercial and residential destinations will have the same transportation charge, based on the lower commercial rate, and will increase 4.9%. The Ground residential surcharge that was previously built into the Ground residential rates will now appear as a separate charge on your UPS invoice. Air and International services will increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2% reduction in the air fuel surcharge. In addition, the Delivery Area Surcharge and Residential Surcharge will both increase by $0.10."
Increased costs and decreased exposure across all venues are expected to continue in 2007. eBay has already announced plans to continue the "Disadvantaged" idea and decrease exposure to stores even more. To support continued revenue growth while their market declines eBay will have no other alternative than to raise fees again. Other venues are tossing around similar ideas.
Increased costs of packaging and shipping supplies are expected to rise between 3%-5% over the next 12 calender months to keep up with production cost increases. Given the increases in 2006 caused by Katrina and Petroleum costs the 3%-5% increase may be an underestimated figure.
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