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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Blondie - Thursday, February 16, 2006 - link
The article was very informative. Thank you so much for taking the time to bring it to us.Bozo Galora - Thursday, February 16, 2006 - link
wow, anand is all growed up.I often wondered if the $50 million plus payout for AT site during the dotcom bubble that anand missed by just a few weeks has been made up for over the ensuing years. Hmmmmmmmmm.
Was it Sharkey that got $70 million or sumthin. LOL
Phiro - Thursday, February 16, 2006 - link
99.9999999% of those dotcom bubble payouts were in stock, which 99.99999% of the time dropped tremendously in value before they could unload any.So 99.999999% of your $50M deals turns into $50k deals.
jnmunsey - Wednesday, February 15, 2006 - link
Hey man NewEgg ain't got no white employees.. Those racist bastards!jnmunsey - Wednesday, February 15, 2006 - link
No wait I found 1 white guy in this pic from page 1 of the article.. The token white guy can be found here in the middle-left of the pichttp://images.anandtech.com/reviews/IT/InsideNeweg...">http://images.anandtech.com/reviews/IT/InsideNeweg...
andrep74 - Friday, February 17, 2006 - link
Yeah, have you ever read the requirements for getting a job there? You practically have to speak Chinese...yanman - Wednesday, February 15, 2006 - link
Anand, how about you use this chance to get NewEgg to offer international shipping for us poor aussies :)Schmide - Wednesday, February 15, 2006 - link
but with all that technology. How come my browser never starts on page 1 in their hot deals section. It’s always page 3 or 4. LOL.Slaimus - Wednesday, February 15, 2006 - link
Newegg got (in?)famous on Anandtech when they were the only one to sell the Radeon LE (Sapphire version imported from China, back in the day when all ATI was made by ATI themselves). It was far cheaper than the Made by ATI Radeon DDR. This got posted in Hot Deals forum and everyone was pleased with their fast and free shipping. They got in trouble, however, when people found out it was the LE (slower) version instead of the full Radeon DDR. There was a big uproar (I think the thread grew to 500 posts or so), and Newegg was forced to take in returns or offer price adjustments. This is also what started the cheap "refurbs" that newegg sells, which were just customer returns. This was probably also why Newegg started posting the core/memory speeds of graphics card they sell.kmmatney - Wednesday, February 15, 2006 - link
Heck yeah!!! I bought one of those Radeon LEs for cheap after the first debacle. I flashed the BIOS to a full Radeon. It gave me a top of the line $150 video card for $65!! Back then, top of the line as $150 :(.