Overstock inks warehouse lease to fulfill 2-day shipping orders
Overstock on Thursday announced plans for a Kansas City, Kansas warehouse in order to fulfill its promise for two-day ground shipping to more than 99% of customers in the lower 48 states. The new facility will otherwise help speed up orders that can't be fulfilled in two days, the company said in a press release emailed to Retail Dive.
The e-retailer has leased the 517,000-sq.-ft. warehouse, which as of October will move top-selling products, and, eventually, accommodate returns, according to the release. The operations will create more than 100 local jobs within the next two years, the company said.
Earlier this year Overstock unveiled 17 private label furniture brands that include 16,000 furniture and home décor products, mirroring similar moves in recent months from Amazon, Target and Walmart, although the company has also said it aims to spin off its e-commerce business to focus on blockchain trades.
Overstock's plans for two-day shipping and this new warehouse were first revealed in May, although executives then also said that the future for Overstock's retail side lies in developing a brick-and-mortar business. The new warehouse will open in time to fulfill holiday orders, Carroll Morale, Overstock vice president of supply chain, said on Thursday.
Despite that, CEO Patrick Byrne said that he has no interest in "buying brick and mortar," noting that Overstock's e-commerce would ideally be acquired by an established retailer whose online operations are behind the curve. Overstock executives also see enormous retail opportunity in Canada.
Wayfair, which is likely bearing the brunt of escalated furniture sales from mass merchants like Amazon, Target and Walmart, remains the top retailer when it comes to online search, according to data from Kantar Media emailed to Retail Dive. Discount retailer Coleman Furniture ranked second in product listing clicks with 9.5% share, followed by Overstock.com (8.5% click share), Walmart (7.7% click share) and 1StopBedrooms.com (6.4% click share) in the top five.
The opening of Overstock's newest warehouse coincides with the retailer's upcoming annual Anniversary Sale, the company said. Along with "deep discounts on top-selling products," members of Overstock's Club O Loyalty Program will have access to preferred customer perks and 10% rewards on select products, alongside their usual free shipping and 5% rewards on all purchases.
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