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Newegg... unethical business practices?

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Newegg fencing stolen goods.


Your friend is a total moron and should shoot himself before he pollutes the gene pool with his taint.
 
For those wondering what a gray market is:
A grey market is when you buy through alternative sources than the ones your supposed to. Let's say a digital camera costs $200 from a wholesaler to buy here in America, but costs $150 from a wholesaler in Japan. A grey market activity is when the seller buys from the cheaper source and still sells at the normal markup or at a marginally discounted prices, this increasing their profit margins by a large percent. This has been debated and to whether it's unethical or not, because it isn't illegal. The big gripe with this is the wholesaler/manufacturer lose that potential profit that they could have had if the seller would have bought it at the higher price. That's why you're seeing a lot of products that are the same but with very different packaging, such as digital cameras from Japan will have a lot of Japanese text all over it and little to no English, and a different color scheme. This no only clues people in to that fact that the manufacturers don't want it sold that way but also with a manual in a different language it is a lot tougher to use. Still, it doesn't have as negative of an impact as the manufacturers would want because people can cope with an unreadable manual if they save a good chunk of cash.
 
Grey market is when it usually does not come with things that retail comes with. This may include some or all of the following: accessories, manuals, support cd's, retail color box, warranty.
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No, that would be an OEM product, a product sold meant to be configured with a new PC, not sold at retail.

Gray market would indicate something not sold through the typical chain - for example a company buying bulk sound cards from the manufacturer for integration into PCs, then selling them against their contract to a distributor for resale instead. Or, say, a distributor purchasing a product overseas from other dealers for resale instead of purchasing from the correct channels in their region.

There is nothing wrong, per se, with buying a product that was sourced through the gray market. If you're purchasing something that works, retail or OEM, why do you care where it comes from?
 
Originally posted by: pkananen
but the point is.....how DO they get such low prices on stuff? I know big retail stores (compusa, etc) who have costs that are higher than newegg's retail prices.
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well big retail stores have a physical store to maintain, the physical establishment cost a lot of money, plus all the employees that work there, so these costs are figured into retails store's bottom lines.

 
There is nothing wrong, per se, with buying a product that was sourced through the gray market. If you're purchasing something that works, retail or OEM, why do you care where it comes from?
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I wouldn't want to buy anything that was stolen or obtained illegally.

I am in no way saying Newegg is guility of this though.
 
Originally posted by: Kremlar
Grey market is when it usually does not come with things that retail comes with. This may include some or all of the following: accessories, manuals, support cd's, retail color box, warranty.
Click to expand...

No, that would be an OEM product, a product sold meant to be configured with a new PC, not sold at retail.

Gray market would indicate something not sold through the typical chain - for example a company buying bulk sound cards from the manufacturer for integration into PCs, then selling them against their contract to a distributor for resale instead. Or, say, a distributor purchasing a product overseas from other dealers for resale instead of purchasing from the correct channels in their region.

There is nothing wrong, per se, with buying a product that was sourced through the gray market. If you're purchasing something that works, retail or OEM, why do you care where it comes from?
Click to expand...

Gray market is imported products meant for sales overseas often have no us warranty and will not be serviced by the company if the product fails. This is important to consider if you are buying a very expensive product and warranty is important to you.

New egg does not sell gray market.
 
His newest reply:


Don't wholesalers have different pricing tiers depending on what volume you buy in? Like 1-5, with places like newegg being a 5, smaller resellers being a 1.... That'd probably account for the different prices. :/


In most cases, the "pricing tiers" are item specified, not necessarily by quantity ordered, but quantity is factored in and the percentage break you get is minimal, if any.

According to your model, you can stand to be a level 10 retailer and still not get the kind of wholesale pricing that what certain retailers are trying to justify the resale price at.


And newegg does offer a 30 day money back refund on everything... read: http://www.newegg.com/app/warranty.asp All their retail stuff has manufacturer warranties, and they even let you buy extended warranties beyond what the manufacturer warranties it for.


*You might want to take another look about the 30 day money back refund on anything statement.*
http://www.newegg.com/app/ViewProdu...e=0&propertycode=&propertycodevalue=4186,4720

This item is NOT REFUNDABLE

There's a prime example. That's an item Intel is still recommending an MSRP well above their advertised price -- how do you justify, and please try not to let the "NO REFUND" thing throw you off in any way. That same item is refundable with little ol' PHPC, why isn't it refundable with them?



Im finding it a little hard to believe that a place that does as much business as newegg could get away with selling products that werent "legit".


As far as genuine items and NewEgg are concerned, yeah, I'm sure a decent bulk of their stuff is authorized, I'm not saying they're 100% shady. But in the big scheme of things, is the average Joe Schmuck really gunna be able to tell an authentic OEM processor apart from a grey market one? I mean they're virtually identical, and as long as the item remains functional, you won't give a fvck less. You're prolly not gunna know for sure until you have to find out the hard way.

Same thing with an OEM item being passed off as "new" when that company also carries a "refurbished" inventory.

Know all the facts before you decide to become a fanboy, it really helps.
Click to expand...
 
Originally posted by: pkananen
but the point is.....how DO they get such low prices on stuff? I know big retail stores (compusa, etc) who have costs that are higher than newegg's retail prices.
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A few warehouse workers are a lot cheaper than a horde or blue-shirted inbreds. 😉
 
he dares s to slant my beloved NEWEGG!!!!!
He really should learn how to deal with customers I mean calling someone " a cheap jewish end user" is not the way to keep customers.


Newegg has been the best online store for me. I have a run of bad luck lately and they have been easy to talk to with regards to RMA ing stuff.

hope they keep up the good work

peace
 
Originally posted by: djheater
Derogatory comment about Jews in OP.

FYI.
Click to expand...

I noticed that also but it's not the OP's fault.

However if they're aware of the forum rules I would have first proofread it and replaced the Jews remark.
 
Don't wholesalers have different pricing tiers depending on what volume you buy in? Like 1-5, with places like newegg being a 5, smaller resellers being a 1.... That'd probably account for the different prices. :/


In most cases, the "pricing tiers" are item specified, not necessarily by quantity ordered, but quantity is factored in and the percentage break you get is minimal, if any.

According to your model, you can stand to be a level 10 retailer and still not get the kind of wholesale pricing that what certain retailers are trying to justify the resale price at.
Click to expand...

I was once a certified reseller for both TechData and Ingram. He doesn't know what the hell he's talking about. You do get small price break for volume orders but there are seperate pricing tiers based on the annual $$$ amount of business you do through the wholesalers. You are tier 1 until you purchase $100,000+ in product, then you are tier 2. To get to tier 5 you have to do over 10million in volume annual if I remember the scale correctly. You don't even get to see the prices unless you are in the tier and they often won't even acknowledge that the tiers exist. Ingram was absolutely lambasted by the resellers when Buy.com (who was funded by Ingram) started up because it was seen as them selling direct at the tier 5 pricing and as a result putting all the resellers out of business. I know quite a few resellers that sell at prices lower than NewEgg but they specialize in that item and do massive volume in it. One I can think of in particular has absolutely killing pricing on memory but they sell millions of pieces a year by being an wholesale aggregator on memory and buying direct (and bypassing Ingram).

I would also like to add that no processor and very few MB's are refundable at Newegg, this is because people overclock and fry them and then want to try a different processor. This policy was implimented by Newegg about half a year ago as a response to people sending back as defective products they ruined and then wanting a refund or different product. MSRP is meaningless in the tech industry and him quoting that price just proves his ignorance.
 
Originally posted by: pulse8
I got up to "You're just a cheap jewish end user" and then stopped.
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Same. The poster of that message definitely has issues. Plus he did not bother to back up his claims, just said that he could.
 
Originally posted by: Imdmn04
Originally posted by: pkananen
but the point is.....how DO they get such low prices on stuff? I know big retail stores (compusa, etc) who have costs that are higher than newegg's retail prices.
Click to expand...

well big retail stores have a physical store to maintain, the physical establishment cost a lot of money, plus all the employees that work there, so these costs are figured into retails store's bottom lines.
Click to expand...



everyting I was going to say lol all that electricity,construction of new buildings, advertisment, wages, benefits, shipping to stores, equiptment to run stores, heat and air condition all that.
 
Originally posted by: Kremlar
Grey market is when it usually does not come with things that retail comes with. This may include some or all of the following: accessories, manuals, support cd's, retail color box, warranty.
Click to expand...

No, that would be an OEM product, a product sold meant to be configured with a new PC, not sold at retail.

Gray market would indicate something not sold through the typical chain - for example a company buying bulk sound cards from the manufacturer for integration into PCs, then selling them against their contract to a distributor for resale instead. Or, say, a distributor purchasing a product overseas from other dealers for resale instead of purchasing from the correct channels in their region.

There is nothing wrong, per se, with buying a product that was sourced through the gray market. If you're purchasing something that works, retail or OEM, why do you care where it comes from?
Click to expand...

I guess I stand corrected then. I was basing my answer on all the posts I have read specifically about grey market digital cameras and what I wrote is from how these customers described their grey market experiences. I know what OEM and I don't think my description describes that. I never said you just get the part or nothing else. I said it is missing the retail stuff.

Yours makes sense, although it doesnt explain why things are missing sometimes. Japanese people don't need AC adapters?
 
Originally posted by: RossMAN
Originally posted by: djheater
Derogatory comment about Jews in OP.

FYI.
Click to expand...

I noticed that also but it's not the OP's fault.

However if they're aware of the forum rules I would have first proofread it and replaced the Jews remark.
Click to expand...
So are we not allowed to even quote questionable words, phrases?

 
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