Any successful retailer knows that to ensure customer loyalty, they need to have the right products, available at the right time to keep pace with demand.
Well, Overstock is responding to customers’ increase interest in emergency preparedness supplies by boosting inventory on these products and creating a dedicated online shopping experience. The eTailer also is offering customers 15% back in rewards dollars to Club O loyalty members who purchase them.
Overstock’s inventory of emergency preparedness supplies includes a
selection of food storage, first aid and survival gear options. The
site also features a Farmers Market, from which users may arrange for
home delivery of locally grown food.
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In the below Q&A, the RTP editors share their thoughts on this new initiative:
Debbie Hauss, Editor-in-Chief: I think it’s a smart move on Overstock’s part. They are tapping into a very significant worldwide occurrence. Additionally, apart from product sales, they are providing information to consumers via O.info and the Emergency Prep guides. They just need to be careful not to make it look like their primary goal is to profit from others’ misfortune.
Alicia Fiorletta, Senior Editor: I think this is a great move, as it shows that Overstock is in tune with news developments, as well as the wants and needs of customers. For the Emergency Prep area, sure, there are shoppers who wait until the last minute, but I can’t help but think that with Superstorm Sandy as well as new developments around Ebola in the U.S., more people are trying to think ahead. Overstock is helping in that process by integrating a variety of information and resources to help them make the best decisions. I also am really loving the Farmers Market experience. With the rise of services like Door To Door Organics, Overstock is making its presence known in the market and is giving customers added perks for participating, which I’m sure will increase likelihood that shoppers will just stick with Overstock versus signing up for a completely different service.
Rob Fee, Managing Editor: Great move by Overstock. While it may be a bit opportunistic, there’s no denying that this move benefits consumers. There’s just one problem: You typically don’t hunt down these types of products until you need them. By then, unfortunately, it’s too late. I learned this lesson after losing power for a little more than two weeks as a result of Superstorm Sandy. The basic essentials, such as water, flashlights and batteries, proved nearly impossible to find. Lesson learned, and I now keep emergency supplies in my home. I suspect that there are many like me who may turn to Overstock in the future for these types of supplies.
Kim Zimmermann, Managing Editor: While the idea is solid and will surely encourage some customers, I don’t think many people plan far enough ahead to have something shipped, which makes me skeptical if this will work. During Superstorm Sandy, I witnessed some pretty tense moments as people grabbed batteries and flashlights. But for those with the foresight to get their emergency supplies early, offering them some savings is a great way to build loyalty.
Glenn Taylor, Associate Editor: Given that other major retailers haven’t done this yet, I think it’s beneficial for Overstock to differentiate itself here. Whether other retailers follow this trend is yet to be seen, but there are always going to be scenarios where people need to prepare for potential disasters. We’ve seen only a few short years ago that preparation for a natural disaster can be for the best, particularly in the case of those needing electricity. I particularly remember power generators being a major necessity during Hurricane Sandy; selling these online would be a better option than standing in a line for an hour only to find out the store has no more in stock.
Brian Anderson, Associate Editor: Not only is it a smart move, it is also a timely move. One of the O.info guides dives into “How To Prepare For Ebola’s Arrival In The Western Hemisphere,” which will definitely keep Overstock top-of-mind for consumers concerned on the issue. Preparing sales and deals around current events can be effective, but can also effect brand image negatively. Overstock needs to draw the line so this doesn’t turn into negative publicity.
What do you think of Overstock’s new offerings? Will it be successful? Share your thoughts in the comments section below!
