Newegg Biz Model

[mans]

Do Newegg keep stock of the so many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, hardware retail market is difficult. New manufacturers, items, models, and compotators are popping daily in the market and prices are never getting tired from going down. Keeping big stock of so many items then is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

 

[MikeMike]

Originally posted by: mans
Do Newegg keep stock of the so many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, hardware retail market is difficult. New manufacturers, items, models, and compotators are popping daily in the market and prices are never getting tired from going down. Keeping big stock of so many items then is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

they have multiple warehouses.

what do you think?

MIKE

 

[Chronoshock]

They're a billion dollar company, they have many many employees.

 

[mans]

Ok, but what about smaller players with similar biz model. Some have better prices in some items. Do they keep stck as well?

Newegg is big, I know, but does this mean they blindly buy lots of itmes to get better prices. |Then sell just half that items and keep the rest in their "multiple warehouses"?

 

[benliong]

I think (without evidance) that they don't stock "every single product they offer". There are always products that they know they can sell volume and products that are just there so they have the diversity. For the latter, they won't stock them, but just dropship them from their supplier (ask their supplier to ship to their customer directly whenever they have an order). They won't earn as much on those items because they don't buy in volume.

I think almost all internet store do that. Stock what they can push volume, and dropship everything else. The difference between a successful company from anything else is their ability to get the equation right: how much to stock, which to stock, how to push the stocked products.

I can be wrong, so let's post your opinions.

--Ben

 

[amdskip]

It's just retail and attempting to predict sales and not have any out of stocks because if you don't have the product, you can't make any money from it.

 

[Newegg Webmaster]

Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

 

[AFB]

Originally posted by: Newegg Webmaster
Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

?

 

[jtusa]

Originally posted by: mans
Does Newegg keep stock of the many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, the hardware retail market is difficult. New manufacturers, items, models, and competitors are popping up daily in the market and prices are never getting tired of going down. Keeping large stock of so many items is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

fixed

 

[InverseOfNeo]

Wow, such a thorough answer. Now if ony I can know why FedEx hasnt scanned my package at all today from NewEgg, when it was packaged and shipped over the weekend (presumably to be picked up today (Monday) by FedEx).

 

[AFB]

Originally posted by: jtusa4

Originally posted by: mans
Does Newegg keep stock of the many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, the hardware retail market is difficult. New manufacturers, items, models, and competitors are popping up daily in the market and prices are never getting tired of going down. Keeping large stock of so many items is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

fixed

Spellin Nazi

 

[jtusa]

Originally posted by: amdfanboy

Originally posted by: jtusa4

Originally posted by: mans
Does Newegg keep stock of the many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, the hardware retail market is difficult. New manufacturers, items, models, and competitors are popping up daily in the market and prices are never getting tired of going down. Keeping large stock of so many items is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

fixed

Spellin Nazi

Haha, I'm usually not, but this one was bugging the hell out of me for some reason.

 

[natto fire]

Originally posted by: Newegg Webmaster
Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

We are not worthy.

BTW: Keep up the good work, I have yet to meet anyone that was dissatisified with a newegg purchase. (Like you'll really check back and read this)

 

[FelixDeCat]

Originally posted by: Newegg Webmaster
Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

Why did Newegg go down for several days last week?

 

[mans]

Originally posted by: Newegg Webmaster
Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

Sorry for this late reply and thank you for choosing my thread to post your first participation in AnandTech's forum. I'll pm you

 

[mans]

Originally posted by: jtusa4

Originally posted by: mans
Does Newegg keep stock of the many items they offer? They need to buy really big quantities from suppliers to maintain competitive prices. As we know, the hardware retail market is difficult. New manufacturers, items, models, and competitors are popping up daily in the market and prices are never getting tired of going down. Keeping large stock of so many items is very risky.

So, how do they operate? Are they just the "middleman" between suppliers and end users or what?

fixed

Easy pal! This is the Internet and I'm not native.

 

[ViRGE]

Originally posted by: Newegg Webmaster
Dear interested AnandTech members:

Thank you for your interest in Newegg.com.

Newegg.com actually procures every item you see on our website, excluding downloadable software where there is no "physical" product, and stocks the merchandise in several warehouse locations across the United States.

Newegg.com does not employ "middleman," such as suppliers, vendors or even product manufacturers, to ship merchandise on our behalf. To deliver optimum service, we believe that stocking and shipping products ourselves is essential and a fundamental reason why shoppers rely on us.

We would otherwise be incapable of shipping 98% of orders same-day and provide the first-class shopping experience our customers have become accustomed to. We take great pride in the fact that we solely process every order placed on our website and we shall continue to do so even as we evolve and grow.

Newegg.com is an expert on delivering the freshest technologies available and we are in tune to what's hot and what's not. Our reputation, experience and keen industry insight permit us to negotiate the lowest possible prices available. As long as loyal patrons like those in this forum keep shopping, we vow to continue to offer quality products at value prices and only the finest in customer support.

Thank you,
NEWEGG.COM WEBMASTER

Nice to see Newegg is sending a rep over. That said, you weren't PayPalDamon in a past life, were you?

 

[PowerMac4Ever]

I miss PayPalDamon.. his replacement doesn't reply to PM's

 

[OS]

Newegg is basically a front for a hardware distributor. The main company is like a smaller/2nd tier competitor to Ingram Micro. Distributors aren't allowed to directly sell to consumers so they often set up satellite companies to get around that inconvenience. I used to work in that industry but unfortunately I don't remember the primary company name anymore.

 

[FearoftheNight]

remember adul or someone working for AT saying the parent comp. was abspc. not 100% sure though

 

[newbies]

Originally posted by: benliong
I think (without evidance) that they don't stock "every single product they offer". There are always products that they know they can sell volume and products that are just there so they have the diversity. For the latter, they won't stock them, but just dropship them from their supplier (ask their supplier to ship to their customer directly whenever they have an order). They won't earn as much on those items because they don't buy in volume.

I think almost all internet store do that. Stock what they can push volume, and dropship everything else. The difference between a successful company from anything else is their ability to get the equation right: how much to stock, which to stock, how to push the stocked products.

I can be wrong, so let's post your opinions.

--Ben

I heard Newegg CS said they stock to sell, they never sell anything without inventory. Yes they are billion dollars company, please call Newegg CS they will tell you Newegg story.
:Q