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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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 :(.