Inside Newegg: They give us a Tour and you a Prize
by Anand Lal Shimpi on February 14, 2006 3:31 PM EST- Posted in
- IT Computing
Established in 2001, Newegg has quickly become a household name among AnandTech readers. They originally won the hearts of many readers by offering extremely competitive prices and keeping customer service a top priority. Since their humble beginnings the company has grown tremendously, with net sales in 2005 of approximately $1.3 billion, a 30% increase over the prior year. Newegg currently stocks over 60,000 different products and ships up to 25,000 orders per day, 98% of them within 24 hours.
On a recent trip to Los Angeles we were given the opportunity to take a tour of one of Newegg's warehouses. While we've been able to tour Newegg's facilities in the past, this time they let us publish pictures and take you on a virtual tour of their facilities - effectively letting us follow the path of an order after it is placed online. Newegg sweetened the deal even more by working with us to give away some of their product to you all, but more on that later.
Newegg is trying to target 2 day turnaround for all shipments, regardless of shipping method, thanks to strategic placement of their warehouses all over the country. The warehouse we toured is a medium sized generation 2 model at 180,000 square feet, Newegg’s latest warehouse is a third generation model at 300,000 square feet in Tennessee designed to service the east coast.
What you see in the picture above is a glimpse at where the action takes place in Newegg's 180,000 square foot facility, this article will give you a brief look inside Newegg and how your orders get from their website to the shipping truck so very quickly.
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jims23211 - Tuesday, February 14, 2006 - link
As a FedEx employee, the info that NewEgg supplied you about a price hike was bogus. Fact is NewEgg received a substantial discount, but UPS decided to undercut FedEx, so NewEgg renegoitated their contract on a less volume. Last I heard from our Corporate Sales rep, Newegg finally realized their mistake (a huge amount of damage returns and missed/lost deliveries by UPS) and is trying to get their deal back with FedEx, good luck...Jim
NullSubroutine - Wednesday, February 15, 2006 - link
aww poor fed ex, do they want a sucker? im sure its not just one sided to fex being innocent.yacoub - Wednesday, February 15, 2006 - link
Considering FedEx is the better shipper to use most of the time...hergieburbur - Tuesday, February 14, 2006 - link
I agree, I have shopped Newegg for years, and I never once had any problem receiving my order extremely quickly until they switched to UPS. First time I ordered that was sent UPS took 2-3 days more, held up by shipping. Personally, I miss Fedex Ground.overclockingoodness - Tuesday, February 14, 2006 - link
I'm guessing that's based on Newegg's dealings with UPS. A shipping company better be competent if it wants to handle 25K orders a day. I guess Newegg has created a benchmark for making sure shipping companies are doing their job well (so has Amazon.com).jfunk - Tuesday, February 14, 2006 - link
I've always loved Newegg since the beginning. Almost always within a couple bucks of the cheapest price and service has been great the few times I've had to contact them.I just hope not too many of my shipments start comming out of the new TN warehouse, it takes longer to get to me than the stuff from NJ.
overclockingoodness - Tuesday, February 14, 2006 - link
Yes, that's Anand in the picture. :)AndrewChang - Tuesday, February 14, 2006 - link
Hey Anand, that wouldn't happen to be you by any chance would it? Haha, Goodstuff...PClark99 - Tuesday, February 14, 2006 - link
the link to enter the contest is not working for me.DigitalFreak - Tuesday, February 14, 2006 - link
Leave the contest link broken! All the n00bs won't be able to figure out how to re-construct the correct URL and won't be able to enter! More chances for the rest of us.