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Overstock looking to gain advantage with potential 2-day delivery

Overstock.com is in advanced talks with a logistics company about outsourcing distribution and delivery — a move that would enable the e-tailer to provide two-day delivery on furniture and other bulky items, The Post has learned.

Such a deal would give Overstock, which is run by e-commerce pioneer Patrick Byrne, an advantage over rival Wayfair. The company involved is Greenwich, Conn.-based XPO Logistics, sources said.

“We have no agreement with XPO Logistics,” an Overstock spokesman said, declining to comment further.

In the event of a deal, Overstock would be able “to outsource all of its warehousing, distribution, transportation, returns, and last-mile deliveries to XPO,” a source close to the situation told The Post.

“Overstock [would] be able to become the first retailer to offer two-day delivery to 87 percent of consumers in the US. By selecting XPO, Overstock [would] leapfrog Wayfair,” the source said.

E-commerce furniture deliveries currently can take up to a few weeks.

Earlier this year, XPO reached a deal with Amazon to help the e-tailing leader manage its furniture and appliance warehouses. “What Amazon wants is to own everything in furniture and appliances,” the source said.

XPO’s chief executive, billionaire Bradley Jacobs, this month said his company is expanding its last-mile network with 10 new hubs. By the end of 2018, XPO expects to be within 120 miles of 90 percent of the population, Jacobs said.

Overstock shares on Wednesday fell 2.6 percent, to $18.50. Shares at XPO, which declined to comment, slipped 1.2 percent, to $55.93.

Source: http://nypost.com/2017/08/16/overstock-looking-to-gain-advantage-with-potential-2-day-delivery/

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