Overstock.com reported financial results on Tuesday for the quarter ended September 30, 2009. Revenue grew 4% year-over-year to $195.1 million, and its net loss shrunk 50% to ($787,000). During a conference call with analysts to discuss earnings, the company revealed it had started a new consignment business that sounds similar to Fulfillment By Amazon.
Jonathan Johnson, Overstock's President, said, "We've gotten pretty good at the pick pack and ship game, and we've begun to approach folks to offer a consignment model so we can make use of our warehouse space and our skills as pick pack and shippers. It's a nascent project, but I think it's a place we have some potential."
CEO Patrick Byrne added, "We are really looking for our first few big vendors who want to reduce their own warehouse costs and have some excess inventory to liquidate and want to send it to us. I think the consignment model ultimately should be a good business for us."
Overstock's international business still comprises less than 1 percent of sales for this calendar year, but the company is focusing on international.
Patrick Byrne said "We are prepared for a rip-roaring Christmas. If we do have one, I don't want there to be any tears and people be surprised, I think we're going to have a great Q4." He also said that Overstock knows what to buy "better than we've ever known before."
He said after the fourth quarter, Overstock.com should have a GAAP profitable year.
The Q3-2009 earnings press release is online here.
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