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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Postoasted - Tuesday, February 14, 2006 - link
First off great article. Have never bought from Newegg before, but after reading about it here I feel assured that they're not some fly-by-night chop shop. As a potential customer the fact that my package will come with peanut styrofoam is a big negative. But if the price is right I guess I can live with it.allometry - Wednesday, February 15, 2006 - link
I'm not sure if NewEgg is using the biodegradable peanuts made from a corn starch base. When you finally do place an order, grab one of those peanuts and run it under some water to see if it disapears.plonk420 - Tuesday, February 14, 2006 - link
have you a solution as versitile as peanuts? i sure don'tplonk420 - Tuesday, February 14, 2006 - link
how soon until they pay off the setup and their prices can go down to what they were when they first started? i miss those days...lsman - Wednesday, February 15, 2006 - link
Not when they are expanding to like China and rest and have to pay for those. :Dshabby - Tuesday, February 14, 2006 - link
Looks like a basement operation to me, they sure fooled me....Zebo - Tuesday, February 14, 2006 - link
Always like to read about orgins. Maybe next time. I've never had a complaint with newegg but there are others "just as good" and cheaper too such as Mwave.com Zipzoomfly.com for example. What really sets newegg apart is thier fantastic database for customers to search for exactly the prodcuts they are looking for and once found get a set of wonderful 360 degree pictures of the product! Great job!Hondaman4ever - Tuesday, February 14, 2006 - link
This is a good article for those Industrial Engineers, pretty interesting facility layout.JumpyBL - Tuesday, February 14, 2006 - link
Wow, great article. I used to do recieving work and Newegg's setup really makes me want to work there, looks fun, scanning in all the new products and handling tech stuff all day. Looking at all the CPU and memory products laying about is enough to give any tech enthusiast a stiff one. Thanks for the article and the contest Anandtech.thatsright - Tuesday, February 14, 2006 - link
GREAT Article!!One of those rare AT article that held my attention 100%, and I read EVERY page.