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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Einy0 - Wednesday, February 15, 2006 - link
I will always buy from Newegg, Unless it's a lot more expensive than somewhere else or not available from them. I always get my stuff fast. I get my stuff much faster now that they use UPS. Fedex used to hold my packages extra days until the last possible day to make it on time. I live in Massachusetts. There is a Newegg warehouse in New Jersey. Most of my stuff comes from NJ. With Fedex 3 day, I'd get the stuff exactly 3 days later. Fedex ground, forget about it. It would take seven days or more. I'd track the crap and Fedex would hold the stuff up in their warehouse in CT all the time. Sometimes the package from NJ would go to like Chicago then come back to the East Coast. Stupid crap all the time. With UPS, I get UPS ground and I get the stuff the next day. Everytime I order if it ships from NJ via UPS I get it the next day. Packages are always in great condition as well. Ups delivers to my area of town usually between 11 and Noon. Fedex comes at like 4:30PM. If no one is here to accept my package Fedex will leave me the stupid slip on my door. UPS almost always will just put it inside my porch. I avoid Fedex at all costs.johnsonx - Thursday, February 16, 2006 - link
When FedEx holds your boxes with status "Package not due for Delivery", that seems to be based on how busy the driver's route is that day. On busy routes, they'll keep your box until the last possible day (and you can ill-afford to complain, you paid for 3-day shipping). They fill the truck with everything that must be delivered that day, and then if there's any room left the stuck in tomorrow's packages, the next days, etc.For me, if I want something ASAP but don't want to pay for expeditied shipping, I'll have it shipped to my home address. Usually they deliver it as soon as they get it. If I have something sent to my office (which is probably where I need it), they sometimes hold it 1 or even 2 days.
Obviously this is going to be different for everyone, but that's how it works for me.
As to the whole UPS vs. FedEx debate, I agree that when the switch first occurred, UPS sucked. But on my more recent orders, UPS has been quicker and 'cleaner' than I had ever expected of FedEx.
WileCoyote - Wednesday, February 15, 2006 - link
I had stopped ordering from Newegg because of Fedex. I started ordering again when they added UPS. UPS drops it off if I'm not home but Fedex makes me drive to their building to pick-up the package for missed deliveries. About 90% of the time the Fedex driver didn't leave a notice behind so I wouldn't even know the package was waiting for me. I hate Fedex - for the inconvenience and for hiring losers.bldckstark - Wednesday, February 15, 2006 - link
I have had the same experience with FedEx. Their airport hub is 5 miles from my house, but a box will sit at the warehouse for 3 days until the actual "delivery date" is reached. Then it comes. This might be good for some people who don't expect to see it til then, but dang, seeing my stuff sitting in a warehouse for 3 days tees me off. By the way, my sister is one of the losers. She said they didn't leave notices for you because you are rude and your house smells. Fedex has a card you can fill out one time to tell them to always leave the box regardless of whether it requires signature or not. The delivery confirmation says "signature on file". UPS doesn't do that and I wish they did. USPS too.bob661 - Wednesday, February 15, 2006 - link
UPS is MUCH slower than Fedex to my house. If I order something from the CA warehouse, it'll come next day even if I pick the 3 day selection! UPS will take a least a week if I pick the 3 day.dev0lution - Wednesday, February 15, 2006 - link
...then you should do a tour of some of the larger System Builders in the same neighborhood. Just as automated in many cases, but with assembly lines, burn-in stations and floor to ceiling with product.Don't get any ideas though, since the rent-a-cops are packin' heat ;)
skyyspam - Wednesday, February 15, 2006 - link
This was definitely one of the more enjoyable (perhaps original?) tech-related articles I've read in a long time. I've always been curious as to how newegg operated--and now, thanks to Anandtech, I know!Slash3 - Tuesday, February 14, 2006 - link
...is cheaper shipping to Alaska! That's one of the reasons I keep going back to Zip Zoom Fly - they offer "free" 2nd day shipping on many items, and while the offer isn't valid to AK for some reason, they *do* offer a $10 2nd day rate. Newegg's shipping calculations to AK always end up being quite high for few or single item orders, and they don't offer alternatives such as USPS. I know we're a small market, but a thousand here, a thousand there, and pretty soon you're talking about real money. ;)Cool article, keep doing these! It's great to get a peek inside the tech industry, definitely something you don't have a chance to explore very often.
Marthisdil - Tuesday, February 14, 2006 - link
Almost every place I've looked, it's cheaper for me to have stuff shipped ot me via FedEx ground than via UPS Ground =/Regs - Tuesday, February 14, 2006 - link
In one of their warehouses like they did with kbtoys back in the day?Wooo weee. Give me a cart and ill tare up that ware house in seconds.