How did Newegg got to be where it is?

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dgage

Junior Member
Dec 21, 2003
1
0
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I would like to say that I have been a long time Newegg purchaser but I think that time is fading due to two things.

1) Shipping can be outrageous sometimes. I was looking at buying a few items tonight and it came up to almost $20 for FedEx SuperSaver. In my cart was a 2.5" USB2 external enclosure, black floppy drive, and two 10' USB cables. I am sorry but that is just outrageous for shipping.

2) I live in Tennessee and they charge tax now. Granted they are still cheaper than most places but with the shipping costs, they are often more expensive than other places that also have solid reviews on ResellerRatings.com.

I still go to Newegg first as they usually have what I am looking for but if the shipping isn't decent, I go elsewhere. I have started using ZipZoomFly more and more lately.

David
 

railer

Golden Member
Apr 15, 2000
1,552
67
91
It takes $$$ to have this great customer service. Money to man the telephones. Money to exchange 'defective' products (many of which are probably not even defective to begin with), money to subsidize the shipping, etc. Without the corporate backing, this place would be out of business by now. It wouldn't suprise me if Newegg was still losing money to this day....
 
May 10, 2001
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i found them aboutst late 99 because they where a testable company at price watch.com and consistently had some of the lowest prices listed.
 

Midnight Rambler

Diamond Member
Oct 9, 1999
4,200
0
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This is true. In a past life I had a meeting with Inwin, (we were evaluating their product) and she mentioned this relationship. ABS does get a little heat occasionally from manufacturers for dumping system-builder-only hardware through Newegg (Bought through ABS using their purchasing leverage).
Yeah, but Ingram did it first with their BUY.CON site ...
 

Zee

Diamond Member
Nov 27, 1999
5,171
3
76
I remember finding them through resellerratings.

Word of mouth has truly pushed them past the competition.
 

DAPUNISHER

Super Moderator CPU Forum Mod and Elite Member
Super Moderator
Aug 22, 2001
28,848
21,652
146
While we're on the topic of online computer parts vendors, did ExcaliberPC go belly up?
 

Turkish

Lifer
May 26, 2003
15,549
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toekramp was helping me build a P.C. sometime in the past, and NE was where we ordered from
 

Bozo Galora

Diamond Member
Oct 28, 1999
7,271
0
0

I remember reading an email posted on a BB whereby the guy wanted a certain revision mobo and they shipped him an earlier product, so he asked them (Newegg) if it was O.K. to send it back for another, and they answered that, sure, he could keep sending them back until he got the one he wanted.

I almost fell off my chair.

And then there's the guys who send back CPU's or VidCards that dont overclock to their satisfaction. I know I couldn't stay in business catering to that type crap. There must be some type of business model that allows for a profit with a super picky customer base that returns stuff for no good reason in a heartbeat, but I cant fathom it.
 

KristopherKubicki

Golden Member
Jul 31, 2002
1,636
0
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DAPUNISHER:

Yeah I think ExcaliberPC is gone. Their website stopped working right on the 1st. I called up my contact their and i got a disconnected signal. These things tend to happen over long breaks/3day weekends. I guess I didnt really see this one coming but i kind of expected it.

Cheers,

Kristopher
 

GT1999

Diamond Member
Oct 10, 1999
5,261
1
71
And then there's the guys who send back CPU's or VidCards that dont overclock to their satisfaction. I know I couldn't stay in business catering to that type crap. There must be some type of business model that allows for a profit with a super picky customer base that returns stuff for no good reason in a heartbeat, but I cant fathom it.

Indeed. My experiences with computer hardware, especially motherboards, hard drives, and optical drives isn't exactly a high reliability rate. I suppose it's the delicacy of the components, either that, or the manufacturers don't test them good enough (which I doubt). At any rate, your statement is exactly how I feel about NewEgg -- I just don't know how they do it, and I hope they will be around for a very long time.
 

ristorap

Junior Member
Jan 5, 2004
3
0
0
NewEgg is the best

Have RMA'd a ton of stuff with never a restock fee and they even reimbursed me 15.00 for return shipping on a PC case.

Everytime I strayed to save 5-10 bucks it ended up a huge hassle...love the site, the reviews, the shipping etc


If you don't like the price or the shipping just wait a day or so...sometimes their prices can swing 15-20 dollars in a given day

I love the Egg!
 

BadaBing

Member
Jul 1, 2002
168
0
0
Newegg is great even shipping to East coast is fast and the new warehouse in NJ makes it even faster.
 

DAPUNISHER

Super Moderator CPU Forum Mod and Elite Member
Super Moderator
Aug 22, 2001
28,848
21,652
146
Originally posted by: KristopherKubicki
DAPUNISHER:

Yeah I think ExcaliberPC is gone. Their website stopped working right on the 1st. I called up my contact their and i got a disconnected signal. These things tend to happen over long breaks/3day weekends. I guess I didnt really see this one coming but i kind of expected it.

Cheers,

Kristopher
Thanks for the quick answer. They must have priced themselves right out of business trying to be competitive with Newegg and ZZF eh? I found some really good deals there, and the shipping was always fast too.

 

miniMUNCH

Diamond Member
Nov 16, 2000
4,159
0
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I've done about $6000 through newegg and well give considerably more in the near future.

I used to live in CA and still bought my parts from them despite having to pay CA sales tax....that's how good their service and deals are.

Now that I'm in PA, they are getting most all my business.
 

Guspaz

Member
Mar 14, 2003
142
0
0
I'm still not of a good opinion of NewEgg, mainly because they still don't ship to Canada. Yes, you might argue, opening a presence in Toronto or something might be expensive and not worth it (Though I'd think it WOULD be), but it's very simple for them to just allow shipments TO canada. Customers already pay shipping costs, it costs NewEgg nothing more than the cost of paying somebody to add a "Postal Code" entry to the order form.

So, until this happens, NewEgg is, in my mind, stupid and useless. I mean, it doesn't speak much for a company's intelligence to forgoe a market of 30 million people for the entrance price of a few cents of HTML changes.
 

Rufio

Banned
Mar 18, 2003
4,638
0
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Originally posted by: Guspaz
I'm still not of a good opinion of NewEgg, mainly because they still don't ship to Canada. Yes, you might argue, opening a presence in Toronto or something might be expensive and not worth it (Though I'd think it WOULD be), but it's very simple for them to just allow shipments TO canada. Customers already pay shipping costs, it costs NewEgg nothing more than the cost of paying somebody to add a "Postal Code" entry to the order form.

So, until this happens, NewEgg is, in my mind, stupid and useless. I mean, it doesn't speak much for a company's intelligence to forgoe a market of 30 million people for the entrance price of a few cents of HTML changes.

but it's canada, so it's ok.
 

someone16

Senior member
Dec 18, 2003
522
9
81
Their pricing wouldn't be very competitive if they had to ship across the border. Some Canadian companies actually have pretty good prices
 

archermoo

Junior Member
Jan 6, 2004
2
0
0
Originally posted by: Parrotheader
Yeah, Mwave was the company I usually turned to before NewEgg. They had good customer service too IMO. I haven't used them in awhile, but then again I haven't really tinkered with my hardware as much the last couple years.

Personally I stopped using mwave a number of years ago when then customer support took a nosedive. Not shipping parts when they said they would and then their CS staff responding with "It'll ship eventually, stop whining" type responses. That and both a friend of mine and my employer had a problem with their CC#s being used to purchase pron (hundreds of dollars worth) by someone on mwave's network shortly after they placed an order with mwave. Mwave's response? "Bummer for you, but we specifically don't track who is using what IP on our network at any given time so that we can't be forced to reveal it under these kind of circumstances."

Which is why I shop with NewEgg.

 

amnesiac

Lifer
Oct 13, 1999
15,781
1
71
Originally posted by: Guspaz
I'm still not of a good opinion of NewEgg, mainly because they still don't ship to Canada. Yes, you might argue, opening a presence in Toronto or something might be expensive and not worth it (Though I'd think it WOULD be), but it's very simple for them to just allow shipments TO canada. Customers already pay shipping costs, it costs NewEgg nothing more than the cost of paying somebody to add a "Postal Code" entry to the order form.

So, until this happens, NewEgg is, in my mind, stupid and useless. I mean, it doesn't speak much for a company's intelligence to forgoe a market of 30 million people for the entrance price of a few cents of HTML changes.

It's not solely a website modification issue.

1) Extra work must be done to ship internationally (customs, etc). This results in increased labor costs.
2) Any savings Canadians get from ordering from Newegg will be eaten up by duties in many cases.

 

Octunar99

Member
Oct 13, 1999
110
0
0
I think they have a product selection that rivals Fry's. The MWave websites looking alike the first year or so could have been from because they were using the same template script sort of like PHPNuke if you get my thinking. NewEgg appears to have kept developing theirs beyond the "stock" look and features.

 

tonyou

Senior member
Nov 22, 1999
508
0
0
Here is my "guess" of how they start and operate Newegg. First, they sell their items at super low prices to attract customers and back up their sales with good customer service and good website. Even if they lost some money it was worth it because they get repeat customers and started killing off their competition. With less resellers around, parts manufacturers have no choice but to sell to Newegg at even lower cost due to purchases in even greater quantity than before. Eventually, Newegg gets so big that the manufacturers are practically selling half of their inventory only to Newegg. This in terms gives Newegg power to demand advertising fees for putting these manufacturers' products on its website. Finally we have Newegg of today that can sell their products at cost to end-users and still be profitable.
 
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