In its second-largest acquisition, Amazon buys the company for $970 million.
Overstock will not only sell but inspect, test and rate items’ condition in a new model CEO Patrick Byrne hopes will lead to other such deals.
Overstock.com will sell Palm handheld computers and accessories under a new agreement that expands the Salt Lake City-based online discount retailer into a new line of business. Overstock will not only receive the pre-approved, open-box, customer-returned merchandise from U.S. Palm retailers for resale, but also has hired staff and set up a facility at its Salt Lake warehouse to inspect and test the items prior to sale.
Items that meet quality standards will be sold online at Overstock.com’s Palm store, as well as on Palm’s own web store. To pass inspection, products must be in new or like-new condition. Items listed in Overstock’s Palm store will include a description of condition that also will go on product packaging.
“This is a significant recognition of a business model we have spent three years developing,” says Overstock CEO Patrick Byrne. “We believe this model is applicable to other consumer technologies and we hope to roll out similar programs for more companies in the future.”