Overstock Decks the Virtual Halls

Overstock.com (NASDAQ:OSTK) will have to widen its virtual shelves. The online outlet retailer has partnered with Ingram Micro (NYSE:IM) to move some of the overstocked items accumulating at the world's largest wholesale computer products distributor.

It's a win-win scenario -- especially for Overstock. The deal helps to cement Overstock's status as the place where wholesalers and manufacturers can turn to move inventory in a hurry. I remember the early days, when Overstock's selection seemed somewhat limited. The closeouts have been pouring in over the past few quarters, and even the finickiest of buyers is bound to find something at a ridiculously low price on the site these days.

The holidays have been pretty good to Overstock so far. According to Nielsen//NetRatings, the company was the sixth-most-visited online shopping destination on Black Friday. It moved up to fifth place a few days later for the increasingly significant Cyber Monday. If you back out traditional retailers, Overstock trailed only eBay (NASDAQ:EBAY) and Amazon.com (NASDAQ:AMZN) in the realm of standalone online shopping sites.

That's impressive, but there's still one major difference between Overstock and its two larger peers: profitability. No one is expecting Overstock, one of the earliest Motley Fool Rule Breakers stock picks, to turn a profit until 2007 at the earliest.

Then again, by the time it gets there, it's likely to be on top of a healthy top line, given the company's speedy revenue growth. Sales have clocked in 78% higher through the first nine months of the year.

Overstock is taking advantage of its growing popularity. Apart from the Ingram Micro deal yesterday, the company announced that it will be teaming up with Chase (NYSE:JPM) to launch the Overstock.com Rewards Visa credit card.

So, yes, it's all about the O: opportunity.

Yes, the Fool has been known to love an online retailer or two. Amazon and eBay are active recommendations in the Motley Fool Stock Advisor newsletter service, and Overstock.com was singled out last year to Rule Breakers subscribers.

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Longtime Fool contributor Rick Munarriz has been shopping online over the holidays for about as long as Amazon.com has been in business. He does not own shares in any of the companies mentioned in this story. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.