Beyond Inc. has undertaken a significant restructuring effort, eliminating millions of SKUs as it moves away from a broad marketplace model for key brands like Bed Bath & Beyond and Overstock.com.
Since April 2024, the company has reduced Bed Bath & Beyond’s SKU count from 12 million to under 6 million by November. In December, an additional 1 million SKUs were cut, along with 800 vendors, according to Beyond Inc. President David Nielsen.
“Bed Bath & Beyond was never meant to be a marketplace,” Nielsen told investors during the company’s Q4 earnings call. “We’re curating a sharper, more efficient product mix.” As a result, conversion rates started improving in December, with similar optimization efforts underway at Overstock.com.
Strategic Refinement & Profitability Focus
Executive Chairman Marcus Lemonis emphasized that the SKU and vendor reduction process is ongoing, aimed at enhancing customer experience and boosting margins. The company is specifically targeting products that performed poorly, disrupted the site experience, or only sold due to aggressive promotions and discounts.
“Those days are over,” Lemonis stated.
Building Stronger Vendor Partnerships
Beyond Inc. is also reinforcing relationships with key legacy vendors in high-performing categories. Nielsen explained that as vendor performance improves, they will gain increased visibility on the website in exchange for better pricing and higher volume flow-through.
Lemonis hinted that these strengthened partnerships will play a crucial role in future omnichannel expansion. “The vendors who understand how to be good partners will get the lion’s share of our business, especially when we reintroduce physical stores and invest more in e-commerce growth,” he said.
Optimizing for Long-Term Growth
For now, Beyond Inc. anticipates revenue constraints as it prioritizes improved margins, conversions, and EBITDA. However, Lemonis reassured stakeholders that the company is moving in the right direction.
“I’m confident in saying that the worst is behind us,” he noted. “Assuming market conditions remain stable, we are on a very positive trajectory.”
As Beyond Inc. sharpens its focus on efficiency and strategic growth, these operational changes mark a significant shift in the company’s approach to retail and e-commerce.
