In the spring of 1999, Dr. Patrick M. Byrne recognized the potential in liquidating
excess inventory through the Internet. Up until then, consumers had relied upon
far-off outlet centers with crowds and limited product selections for finding
bargains, and small retailers found little access into the world of closeout
merchandise. Meanwhile, adoption of online shopping was skyrocketing. Patrick
calculated that while the Internet would prove inefficient at competing with
normal retail channels, it was tailor-made for liquidation due to the highly
fragmented and inefficient nature of the industry in the offline world.
Six months later and with no outside funding, the Overstock.com website launched
with the mission of being the premier company selling excess inventory through
the Internet. Founded on the principles of value investing and fair dealing,
Overstock.com has quickly become the on-line leader in a market valued at $60
billion in the United States. Since then, Overstock.com's gross bookings (previously
called gross merchandise sales or GMS) have blossomed from $1.8 million in 1999
to $834 million in 2008.
The numbers of products Overstock.com offers has grown from less than 100
in 1999, to more than 63,000 non-BMMG (Books, Music, Movies, and Interactive
Games) products and over 720,000 BMMG products. Overstock calculates that, since
launching the site in October 1999, Overstock.com has saved consumers millions
of dollars off the retail prices recommended by manufacturers.
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