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
Shipping and the UPS/FedEx Debate
With the box taped your order is now on the last leg of its trip through Newegg's warehouse as it heads down the final set of rolling conveyers.
The metal crates and employees that you see below are all for Army Post Office and Fleet Post Office (APO/FPO) shipments to the US Military. "Shipping to the US Military is requires extensive paperwork in comparison to our normal shipping operations," says Howard Tong, Vice President of Newegg.com. "Not many companies provide this service but we feel it's worth the extra effort to support our troops and our nation."
With your box packed, labeled and taped up it's off to shipping and it's in Newegg's shipping that most of the recent controversy has been about. Newegg's default shipping is through UPS, although you can pay extra for FedEx. Newegg used to be a FedEx shop by default, however recently FedEx significantly raised their rates, which Newegg passes directly onto their customers. Newegg claims that the rate hike was an attempt by FedEx to discourage customers from shipping via 3-day air, which loses money for FedEx, and instead choose FedEx ground which is profitable.
However FedEx Ground isn't as good as UPS ground, so the end result is frustrated FedEx 3-day air customers that have to pay more, or customers forced out of pricing to go with UPS, which hasn't always had the best track record. In response to complaints about UPS VP Tong says, "We're serious about providing our customers with the best service. We've taken the criticisms about UPS constructively and have greatly improved the situation. However we're always striving for perfection and always welcome further feedback."
With the truck loaded, it's off to your delivery address. As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.
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Minot - Monday, February 20, 2006 - link
Anand, did Newegg give you any insight into their refurbished product opteration? I'd be interested to know where the items come from (i.e. percentage from working returns and percentage from manufacturers) and how often they arrive at Newegg. I'b been buying refurbished parts from Newegg for years and I've found some brands that always come with full accessories and others that are hit and miss. Is there any rhyme or reason to know the accessory status of the item before you order?Great article! Keep it up! -MINOT-
JumpyBL - Monday, February 20, 2006 - link
Any winners yet?DAPUNISHER - Saturday, February 18, 2006 - link
It is Willy Wonka's Chocolate Factory for Computer enthusiasts :Pneweggvp - Friday, February 17, 2006 - link
To confirm what Anand explained, Newegg did not pay Anandtech for this article. Anand and Newegg just thought it would be nice to show a little bit of the Newegg operations.Newegg also has no affiliation with EggHead.
Hope this clears up a couple questions.
Best Regards,
NeweggVP.
andrep74 - Friday, February 17, 2006 - link
It's completely a win-win situation. NewEgg gets advertising, costing them perhaps a lunch with Anand, several CPUs for a contest, and draws more consumers to their website. Anand gets a free meal, perhaps some free product, and draws more readers to his website with a contest. Now if that isn't capitalism, what is?My kudos to them both...
PWNettle - Friday, February 17, 2006 - link
Thanks for the article - it's cool to read how NewEgg does its thing.I've bought parts for 3 builds and some additional components from NewEgg and I've always been very happy with it all.
UPS el cheapo shipping usually takes 3-4 days to reach me but it's not THAT big a deal since that's still pretty quick.
The only thing that irritates me is that when I order parts for a complete PC they usually get shipped from 2+ locations - and it's painful to have every part for a new build EXCEPT the case, which arrives the next day. :)
Davelo - Friday, February 17, 2006 - link
Is Newegg related to EggHead Software? Remember them?Glenn - Friday, February 17, 2006 - link
What a way to start my day!! Read this article and was enlightened and impressed with the way an order progresses and how they get them to me so fast! As usual Anand~ good work and thank you!Then I read all these bulls**t childish comments! I could go on for hours about what I'm thinking but all I really need to say is~ Anand has earned the respect of most of us because of his informative website and articles. I've gained most of my computer knowledge from his website since I first signed on in 1996. I really don't know what I would do without it. In my opinion, NewEgg owes some of its success to Anand and the exposure they gained in his forums. Particularly early on! I really don't mind if they paid Anand for the article, in fact, I hope they did! He earned it well before this article was ever written! A good part of these etailers profits are directly attributable to Anands website! With so many of us having the ability to share experiences, information and recommendations on this website they have benefited greatly! Keep it up Anand and I wish you continued success! My only recommendation would be to have the mods filter out the childish jerks that never seem to have anything productive to say about anything!
And jnmunsey, where do you come off with comments like that? What an idiot!
JBT - Thursday, February 16, 2006 - link
Man I wish I could spend just 5 minutes in there with a shopping cart...amish - Thursday, February 16, 2006 - link
i used my work email addy for the contest. not like i'm going to win, but i hope that any email that could be sent makes it through my employers spam guard.anyways, the pic of all of those CPUs just sitting there was awesome