Overstock changed its business model in 2012 primarily in clothing and shoes, from a direct inventory-based model to a fulfillment partner-based model with the aim of reducing exposure to discounts and seasonal inventoryrisks.
Also, it can cut down on lead times, reduce inventory levels, diminish some currency risks, increase control over intellectual property, and reduce supply chain disruption risks.
Borrowing in China and has become more difficult, too, though, so manufacturers may shy away from longer supply chains and the risks they carry, including getting inventory stuck in transit, particularly in industries with short product cycles or high spoilage.