What's the deal with NewEgg.com? How do they make money?

[LickEmSmack]

I was looking at some of the prices they have going on over there. I haven't bought any new hardware since my last upgrade (arouns Jan. or so) and this was before they were real big. The prices for hard drives are rediculous! The new 40GB 60GXPs for like $110?? That's just amazing to me. Have you guys bought stuff from them? Are they reputable? Good sevice/bad service etc. All comments are welcome.

 

[splice]

They are a very good company. I've bought serveral items from them. Most of the ppl on this board buy from newegg.com.

 

[tigerbait]

Yeah, a lot of people on this board have bought stuff from Newegg, myself included. I would definitely recommend buying from them. Check out there profile at resellerratings.com .

Supposedly they don't keep an inventory, so that keeps costs down.

 

[m1ke101]

bought all my parts for new system from them except for memory (got that at crucial). they not only had it shipped out the same day, it came a day early. they have quality parts that work really well. i would definitely recommend them.

 

[UglyCasanova]

If they don't keep an inventory, how do they ship it out the same day?

 

[Daniel]

Drop shipping, they send the order right to their supplier and on occasion they send that out the same day too.

 

[agg123456789]

newegg is fantastic. everything that i have bought from them has worked...except when i bought win2k pro, scrached cd....they next dayed me a new one...they are fantastic...



agg123456789

 

[NelsonMuntz]

I just put a computer together with parts all purchased from newegg. It was a huge order and everything got here on the same day less than a week after I ordered it. I didn't have to make any returns, but the experience I had with them was spectacular. The shipment was very easy to track through their website too. I would definitely do business with them again.

 

[LukFilm]

So far, all SEVEN orders went out the SAME day for me. And if you still aren't convinced, I RMA'ed something (I live on the east coast) and had it back in my hands SEVEN days later!!! Wow, if that's not awesome CS, I don't know what is!

 

[Dan]

I've ordered a couple of T-Birds, a video card, motherboard, etc. from newegg and I think they are great. In fact, my only gripe with them is they are here in CA with me so I have to pay sales tax.

 

[nnnyyy]

newegg is a great company. Usually they have the lowest prices around! Too bad for CA tax though.

 

[thedarkwolf]

Just ordered a sb live and radeon le from them on monday. It shipped tues and showed up 2:00pm thurs.

 

[acexg1]

I'd recommend them. I bought all the components for my system from them (except Crucial ram ). It took a whole week for it to arrive, but then again I ordered on Memorial Day. Everything arrived intact, so I was happy.

 

[junthin]

<< What's the deal with NewEgg.com? How do they make money? >>



I assure you, Newegg.com definitely makes money on each order. It might not be much per item, but it sure adds up in volume.

 

[Midnight Rambler]

How do they make money? By charging $8-10 to ship a vid card, and by charging a separate shipping charge for each item, although some claim that Newegg will lower the shipping on large orders.

Factoring in the shipping, it's not hard to beat Newegg prices ...

 

[Finality]

They do have costs though.

Sort of like Buy.com they also have no inventory. There prices are higher but they still are loosing money by the truck load. Yes they make money of each order but it doesn't amount to profit.

 

[Playmaker]

I just ordered some items for them, and with 5 items my shipping was only $19.33 for FedEx saver. All the shipping charges total added up to over $35. I always thought they charged per item, but I guess for larger orders they take it down, albeit my order was only 5 items.

 

[frizzlefry]

<< I just ordered some items for them, and with 5 items my shipping was only $19.33 for FedEx saver. All the shipping charges total added up to over $35. I always thought they charged per item, but I guess for larger orders they take it down, albeit my order was only 5 items. >>


If you have more than one item in your order, they will not double charge high rates. The higher rates are for only one item orders.

With regards to making money? All a company has to do is show revenue. The more it shows the better. Even if they were to post losses, so what? They are still making enough money to pay for salaries, etc. Large coporations that are more of a holding company can have 10 companies posting losses, but combined, under their belt, they can show revenue of $X billions.

Newegg is a top notch company to buy from. I purchased a bunch of components from them. They told me 3-4 days before I get them. I got them the 2nd day.

 

[Playmaker]

Well, when I just thru 2 items in the cart the shipping added up to price of both of those seperate shippings. With 5 it was much lower then adding them all up. I saw someone asking about this in another post, now that I know I just thought I'd clear it up.

 

[rowcroft]

I bought almost a complete system thru them (sans memory) and shipping ran about $300 to Alaska (case, UPS, 2 19&quot; monitors, mobo, speakers w/sub) which was very reasonable in my opinion. It was delayed a day because of the procs so they upgraded it to overnight shipping and then told me of the status and what they did. Great company and the reps know english!

 

[navylinux]

I will have to keep an eye on them for when I need to build a new system. I normally search www.pricewatch.com for prices before I buy. I also check out a couple of the auction sites for good deals(www.egghead.com, www.ubid.com).
Had good luck with both of those two sites.

 

[NFS4]

NewEgg is the bomb-diggity I've ordered:

(1) 128MB Mr. Flash CompactFlash Card
(2) 64MB Mr. Flash SmartMedia Cards
(1) PQI CompactFlash/SmartMedia Combo USB Reader for $28!!!!!!!!! :Q

Fast service, I get my orders here in North Carolina 2 days after ordering with default shipping. Not bad at all

 

[bdcrisp]

I just received my new ibm 40gig 7200 rpm hd for 116 from them, works great,

 

[NelsonMuntz]

One of the reasons that I used them when building that system I mentioned earlier (look up this thread) was because they did have one of the lowest shipping rates on everything put together. I think it all came in a total of five boxes instead of like 20. Good efficient use of space in those boxes and if I remember right it was just over $100 for shipping for everything (monitor too). Only Buy.com had cheaper shipping, but a lot of their stuff was more expensive so it offset the cost.

 

[SpideyCU]

Another thumbs-up for newegg. When I order from them I normally wait until I have 3 or 4 items that I'd like to get and do it to save on shipping...their customer service is far beyond most Internet e-tailers.