Overstock Auctions Lowers Fees, adds 1-day Auctions

[Kristijntje]

Hello Overstock.com Auctions Users,

We are certain that the strategic decisions made in the past several months have produced major improvements in the Overstock.com Auctions marketplace. As the first quarter of 2007 comes to an end, I’d like to take a moment to highlight the progress that has been made since the beginning of the year:

• Subscription plan elimination – As I mentioned in a previous post, we have witnessed a site transformation since removing O-Subscriptions. Sell-through rates and average sales prices are higher than ever before, and buyers are no longer forced to sort through hundreds of thousands of unreasonably priced items. Again, we couldn’t be more delighted with the results of this change.
• Behind-the-scene improvements – Our team has also been busy making improvements to the Auction platform that are less noticeable externally, but very evident from within the company. Since January, we have released a new customer care tool, a more robust fraud prevention application, and we have modified the configuration of the site’s technological infrastructure.
• 1-day auctions – We will be releasing this feature on Wednesday, April 4th. These auctions will function as they did in the past; however, the shorter listing duration will only be available to sellers with a rating of 10 or more and who have been verified for at least 90 days.
• Bid cancellation and Classifieds - We underestimated the scope of these projects. Though we thought we were on track for a first quarter release, the launch of these two features will be delayed due the time necessary to iron out the glitches in the code.

The recent changes have all been made with you, our customer, in mind. We’re confident that Overstock.com Auctions is now a more secure, customer-friendly auction venue with a higher quality of item selection than ever before. We are back on the right track and we look forward to demonstrating our commitment to you throughout the next three quarters of 2007.

Now, I am pleased to announce exciting news regarding listing and closing fee adjustments. To facilitate the success of your selling business, on April 10th, Overstock.com Auctions will be reducing auction insertion and closing fees. We recognize that our success is ultimately determined by the ability to grow your bottom line. To help improve your margins and to simplify the costs involved with listing and selling here, sellers will be charged according to the following schedules:

Full announcement with new fee schedules: http://forums.auctions.overstock.com/vie...hp?t=16995

Listing fee decreases range from zero to 7 cents, depending on the starting price. For example, for items with a starting price of less than one dollar, listing fees will go from 17 cents to 10 cents. Closing (commission) fees will also be lowered, with the first tier commission (for items selling for between one cent and $25) going from 3.25 percent to 3 percent...

Overstock is now struggling to find a balance between keeping costs low and retaining sellers, a problem that escalated since it eliminated subscription-pricing programs and abandoned its storefront development...

full article: http://www.auctionbytes.com/cab/abn/y07/m04/i02/s01

[bargainbloodhound]

Sell-through rates and average sales prices are higher than ever before

Sell throughs, even for those of us who are Trusted/Bonded Merchants, were below 5% so it wouldn't take much to raise them.  I need  to see actual numbers before I even think of listing on Overstock again.

buyers are no longer forced to sort through hundreds of thousands of unreasonably priced items.

Probably because 95% of sellers left after your asinine policy changes in December that resulted in listing counts plunging from 340K to 24K. 

on April 10th, Overstock.com Auctions will be reducing auction insertion and closing fees.

If site wide sell through rates were 20% plus I might think about listing.  The new lower insertion fees are still too high based on Overstock's sell through rates.

[thentavius]

The Sith Lords are responsible for all those sellers leaving, BBH. 

[sneakymagenta]

Patrick's :asshat2: fixation with Sith Lords is responsible for the site going to s.hit.



edit: fee reductions: I'm not impressed.

[amy]

Bid cancellation and Classifieds - We underestimated the scope of these projects. Though we thought we were on track for a first quarter release, the launch of these two features will be delayed due the time necessary to iron out the glitches in the code.

Sellers have been begging for bid cancellation since Fall 2004.  How many years does it take to iron out the code?

One day auctions AND a fee reduction?
We'll lose less money, and faster.
:
Well hot diggity, dog ziggity, we are living large now, aren't we?
How my future will shine.

Since the auction link was removed from the home page, my sales are way down. The outlook for next quarter is not good. How can it be when people can't find the auctions and even when they do the majority of the links lead away? I'd rather pay the higher fees and be found. It is becoming difficult for me to use overstock auctions as a sales channel.

Sellers aren't exactly jumping up and down with joy on that thread.

[sneakymagenta]

Sellers aren't exactly jumping up and down with joy on that thread.

joy joy jump jump teensy weensy fee adjustments weeeee

[bargainbloodhound]

positive karma to sneaky for that post. 

[bargainbloodhound]

Sellers are stampeding to Overstock to list after hearing of O's generous fee reduction!...NOT

Overstock  view charts 
21,881

-2986 auction listing down from yesterday

-13.65%
April 5, 2007 8:13 am

[BellisimaJ.]

[quote author=sneakymagenta link=topic=8997.msg48526#msg48526 date=1175573052]

Sellers aren't exactly jumping up and down with joy on that thread.

joy joy jump jump teensy weensy fee adjustments weeeee
[/quote]

[sneakymagenta]

[quote author=bargainbloodhound link=topic=8997.msg48677#msg48677 date=1175775239]
Sellers are stampeding to Overstock to list after hearing of O's generous fee reduction!...NOT

Overstock  view charts 
21,881

-2986 auction listing down from yesterday

-13.65%
April 5, 2007 8:13 am

[/quote]

Listings haven't been this low since 2004. :blinkie:

Overstock  19,364 -1250 auction listing down from yesterday -6.46% April 9, 2007 3:13 pm