Those of us who sell on via online venues such as eBay and Overstock can gain insight from looking at the ‘street’ financial results from those companies. In the case of Overstock, the 2006 results were not favorable: it reported a net loss of $96.9 million for the year according to AuctionBytes (link here).
But there is some good news in that bad news. According to the Overstock CEO Patrick Byrne, their Auction sector has started to turn around. Specifically he said:
This year, it is already profitable. It has been profitable since December. It suddenly is catching fire, at least in the sense of sell-through rate. (Source).
Many auction sellers have long looked for some competition to step forward that would chip away at the heels of that 800-pound auction gorilla, eBay. In the early days of Overstock, we thought it might be them. But in the past few years, they have faded into the background and many have given the company up for lost.
So it’s good to see there is still auction life there! In a recent forum post (link here), you can read some reactions of Overstock sellers. The talk is mostly upbeat. Talk is cheap, but results are gold! I will make it a project to do some test listings at Overstock and give them another try.