Overstock.com, Inc. Also known as O.co is a US online retailer headquartered in Cottonwood Heights, Utah near Salt Lake City . [1] The company was opened in May 1999 by its CEO , Patrick Bern ( Eng. Patrick M. Byrne ). [2]
Overstock.com | |
---|---|
Type of | public company |
Listing on the exchange | |
Base | 1997 |
Founders | |
Location | Cottonwood Heights, Utah, United States |
Key figures | Patrick M. Byrne |
Industry | |
Turnover | ▲ 1.1 billion dollars (2012) |
Operating profit | ▲ $ 12.2 million (2012) |
Net profit | ▲ $ 14.7 million (2012) |
Assets | ▲ 182 million dollars (2012) |
Capitalization | ▲ $ 31 million (2012) |
Number of employees | 1300 |
Site | overstock.com |
Initially, Overstock.com was selling surplus and merchandise returned to electronic trading platforms, eliminating the remnants of at least 18 unsuccessful dotcoms at prices lower than wholesale. In recent years, began selling new products, expanding their activities. [3] [4] [5] [6] [7] [8]
At the beginning of 2011, they conducted a rebranding of the business in the name “O.co”, simplifying and unifying international operations. [9] However, due to customer confusion and the appearance of the “.co” suffix in the name, the name change process was somewhat delayed. [ten]
In May 2002, the company entered the IPO at a price of $ 31, and after receiving significant growth and profit in the first quarters, it finally reached a profit of $ 7.7 million in 2009 [11] and reported on its first billion dollars in 2010.
Business Model
Part of the company's products are purchased or made specifically for Overstock.com. Among these are handmade goods produced for Overstock workers in developing countries . [12] [13] In addition, the company also manages shipments to other retailers.
In addition to direct sales, from September 24, 2004, Overstock also began conducting online auctions on Overstock.com, known as a marketplace, and later on the O.co marketplace. This type of service was closed in July 2011. [14]
If at first information about the company was transmitted only between clients, [7] then later Overstock turned to television advertising with German film actress Sabina Ehrenfeld. [15] [16]
Since 1999, when Bern took control of the company and resumed retail sales, the time for profits began for her. Byrne predicted in May 2008 that Overstock would become profitable by the 4th quarter and would generate revenue of $ 10 million. [17] The company actually became profitable by the 4th quarter of 2008, but again made losses in the first and second quarters of 2009. Finally, it reached the level of profitability following the results of the first annual report in April 2010. After the announcement of the report, Overstock.com shares rose by more than 30 percent.
In 2011, revenues fell by 5% over the two-month period of penalties imposed by Google. According to the Associated Press, Overstock has created fake doorway websites to increase the flow of visitors to its main Internet site. Overstock reported that it was, in particular, a punishment for posting links on the websites of colleges and faculties for which students and teachers could receive discounts. As a result of sanctions from Google, search results for certain products fell in Google rankings. [18] [19]
In 2013, Overstock began to promote growing immigration. According to the company's president, Jonathan Johnson, in Los Angeles Times, their company is fighting to hire the required number of programmers and software developers to expand the company's business. “We pay more, but there are still not enough people,” he said, “We need more freedom in hiring workers to ourselves. This will allow us to solve the problem of boundaries. No one will climb through the window of the house if he can ring the doorbell and enter through the main entrance. ” [20]
In December 2013, the company announced the upcoming launch of accepting Bitcoin virtual currency as a means of payment. And on January 11, 2014, when the bitcoin exchange rate for the third time exceeded $ 1,000, the company's CEO Patrick Byrne ( eng. Patrick M. Byrne ), on his blog on Twitter, said that they managed to make money on the first day of accepting their bitcoin company an additional 124,000 dollars on 780 orders of goods. [21] This makes Overstock.com the largest online store that accepts virtual currency.
Notes
- Po The postal designation of "Salt Lake City" is commonly used in the context of the press release; In 2005, the City of Cottonwood Heights incorporated and Cottonwood Heights has since become an accepted postal designation as well.
- ↑ Interview with Patrick Byrne
- ↑ Five-year stock price . Yahoo! Finance (March 20, 2008). The appeal date is March 21, 2008.
- ↑ Nielson-Stowell, Amelia . Heights of livability in Utah? , Deseret Morning News . The appeal date is March 22, 2008.
- ↑ Nocera, Joe . Revisiting Utah and Overstock , The New York Times (March 10, 2007). The appeal date is March 22, 2008.
- ↑ Financial Statements for Overstock.com, Inc. , Google Finance (March 20, 2008). The appeal date is March 22, 2008.
- ↑ 1 2 Covell, Jeffrey . International Directory of Company Histories, Volume 75 (2004) , FindArticles.com (January 1, 2004). Archived July 17, 2012. The appeal date is March 22, 2008.
- ↑ Glasner, Joanna . Where the Dot-Dead Wind Up , Wired News (November 12, 2001). Archived February 9, 2013. The appeal date is March 22, 2008.
- ↑ Overstock FAQs , Overstock.com (February 2, 2011). The appeal date is February 2, 2011.
- ↑ Musil, Steven . Overstock retreats from O.co name change , CNET News (November 14, 2011). The appeal date is November 20, 2011.
- ↑ Overstock's brash CEO delivers 1st annual profit (5 April 2010).
- ↑ Glasner, Joanna . Overstocking in Afghanistan , Wired News (June 25, 2004). Archived September 18, 2012. The appeal date is March 22, 2008.
- ↑ Dotson, Leslie . Overstock.com , Business Wire, Celebrates One-Year Anniversary of the Worldstock, Its Socially Responsible Goods Department .
- ↑ Steiner, Ina . Overstock Closes Third-Party Marketplace after Seven Years , AuctionBytes (July 15, 2011). The appeal date is March 12, 2012.
- ↑ Stevenson, Seth . What's With That Overstock.com Ad? , Slate (magazine) (February 28, 2005). The appeal date is March 22, 2008.
- ↑ D'Angelo, Jennifer . Oh! Oh! Oh ... It's Another 'Sally' Ad , Fox News Channel (November 13, 2004). The appeal date is March 22, 2008.
- View Interview with Reuters news agency, May 9, 2008, https://www.reuters.com/article/ousiv/idUSN0843196920080509 , accessed May 9, 2008
- ↑ Paul Foy . Overstock.com unloads goods at Utah auction , Yahoo! Finance (December 16, 2011). Archived January 11, 2014.
- ↑ Efrati, Amir . Google Penalizes Overstock for Search Tactics - WSJ.com , The Wall Street Journal (February 24, 2011). The appeal date is January 1, 2012.
- ↑ Brian Bennett and Lisa Mascaro, "Immigration bill would be a surgeon of legal arrivals," LA Times, April 13, 2013 . 20130414,0,5787920.story
- ↑ Official Overstock.com blog on Twitter (Verified January 11, 2014)