Overstock appears to be “overstocked” with failed deliveries, damaged goods, and promises of customer refunds that never materialize as it’s stock plummets 72% off 2022 highs.

With online sales decreasing a dramatic 3% in Q1 of 2022, E-Commerce sites have been scrambling to salvage growth prospects amid rampant inflation and supply chain issues.  Offers of discounts, quicker delivery, and improved customer service, have been a model many have clinged to in these tough times.

One would think that E-Commerce giant, Overstock.com (NASDAQ: OSTK), would follow suit after missing Q1 Earnings at 21 cents per share, which lagged the Zacks Consensus Estimate by 12.50% and were down 63.2% from the year-ago quarter. Revenues of $536 million decreased 18.8% year over year.

Unfortunately, Overstock may be plagued by poor staffing, inept customer service, supply chain and delivery issues that force the company to refund customers — and the poor reviews are pouring in….

The Better Business Bureau currently has over 1,300 complaints logged. 

SiteJabber.com has nearly 1,700 reviews, with ONLY 10% POSITIVE REVIEWS in the last 12 months. Overstock currently with a 3/5 Star Rating.

ConsumerAffairs also has a 3/5 Star Rating with many negative complaints such as Carolyn’s from Shelbyville, KY:

Carolyn of Shelbyville, KY Verified Reviewer Original review: May 22, 2022 I ordered a table, the ordering process was great, and the item arrived in 3 days, which was wonderful. When I opened the box, I realized the table was completely broken and unusable. I went to the website and hit the return button, went through the process, and when I finished, I got a message to wait 24 hours. 24 hours goes by, I go back to the website, look under returns, and nothing. So I go through the entire process again. 23 hours later, I finally receive a message asking for more details. I happily and immediately submit the extra details. 24 hours later, no response again. So now I am calling the customer service number. The automation says it cannot find my phone number, please enter the order number. I enter the order number, this also cannot be found. I go through a lot more automation asking me to enter a different phone number and/or order number. What can I do since I called from the phone number associated with my account and already entered the correct order number? So I wait.

A recent customer reached out to us here at the Observer with his story of how Overstock delivered a damaged swing chair.  The customer was asked to repack it all up and wait around for days for it be picked up while being promised that a replacement will be delivered promptly.

However, the customer never received his replacement, has yet to be refunded, and can not get the adequate customer service to prompt any action from Overstock.

It appears Overstock’s woes are endemic to a toxic corporate beaurocratic structure and poor management across all levels of the company.

Overstock shares (NASDAQ: OSTK) have plummeted over 72% from 2022 highs of $111.28, now trading at $30.85, as investors are currently running for the hills from this failing E-Commerce giant,

Even now, with a market cap of $1.32 BIL, Overstock may still have room to fall or enter into bankruptcy as customers reject the E-Commerce site and orders can not be fulfilled.

We’ve seen it before, and we will see it again.  Circuit City, Nobody Beats the Wiz, Linens N’ Things, K-Mart — all a faint memory in the history books.  At this trajectory, Overstock.com is rapidly approaching this who’s who of failed companies.  Many will blame the current economy, COVID, and more.  But in reality, it appears that Overstock.com can only blame themselves.

WallStreetObserver.com has reached out to Overstock for comment, but has yet to hear back.  This story will update in the event of their response.

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