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

[Nelmster]

I'll make no comments on their profitability, but I, too, bought everything but my memory for my new computer from NewEgg. I have placed 3 orders and had 3 perfect deliveries. As someone else mentioned, their tracking process is the best I've seen.

 

[Pabster]

Midnight Rambler wrote:

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

Bah-loney. Even with the usual shipping (and many items are free) you often get a better deal than at other vendors. I'll gladly pay a few more dollars in shipping to buy from a reputable, reliable supplier and for the FedEx shipping.

 

[fishingeek]

I ordered my motherboard from newegg on a Thursday at about 2:00pm MST. I wanted to build it over the weekend so I decided to pay for next-day air hoping to get it on Saturday for the build. I was very happy to see it show up on Friday!! I will be using them for anything I order in the future (if the price is right).

 

[Mday]

i have never bought anything from newegg.com. but i have surfed the site.

one thing that freaked me out was the way they listed the categories.

compare this with this

from the few products i have seen, the prices are similar too...

freaks me out.

 

[Playmaker]

It's common knowledge that Mwave and Newegg are sister companies. How does this freak you out? LOL.

 

[Double Trouble]

Common knowledge? Newegg has stated that it has no affiliation with mwave, and mwave is accusing newegg of simply stealing their site design. As far as I can tell, they are not in any way related.

Tell ya what though, they both offer great service and prices, I'll go with either one of them any day of the week!

 

[jamison]

I have ordered around $3000 worth of stuff from newegg.

Everything went perfect, except when one of the Durons has a bent pin. No problem, RMA'ed it and it came around a week later, free shipping on the replacement.

 

[hans007]

first off i dont think they are making money. they have made themselves quickly into an established player in the market . further there is a huge slowdown in the computer industry and prices are dropping daily, so they are probably getting a volume discount. newegg is an order fullfilment house, i.e. buy.com. Just with hardware. You have no idea how cheap things are getting on the wholesale market , where refurbished pentium 4 1.5 ghz systems can be had for $450 (a while loaded system mind you)

 

[duragezic]

I think they are making some money (by offering quality parts at great prices) but also trying to establish themseleves. They are doing very well. Look at this thread, there's a ton of comments on how great they are and they have awesome CS too.

I don't think their shipping is that bad either. My friend is looking for a new vid card and I'll probably tell him an LE. Well Newegg is $1 more than the cheapest on pricewatch except those for $68 on pricewatch have about $15 for shipping. Hah what a ripoff. I'll order from Newegg because it's cheaper, great company, and I'd rather have a good company get my (his) money.

 

[Midnight Rambler]

<< Midnight Rambler wrote:

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

Bah-loney. Even with the usual shipping (and many items are free) you often get a better deal than at other vendors. I'll gladly pay a few more dollars in shipping to buy from a reputable, reliable supplier and for the FedEx shipping. >>

Well, right off hand, I know of two very reputable places where I can beat Newegg's prices (albeit by only a few dollars on each item), and one place charges a flat $6.95 for shipping, while the other charges a flat rate of $4.95 or free if three or more items are ordered. Cases included!

BTW, I have, and do, order from Newegg on occasion. And they have done me well. But they are not the be-all, end-all that people make them out to be. No company is ...

 

[LickEmSmack]

Wow, thanks for all the comments... My roommate was finally reassured of the quality of newegg after reading this thread. He placed his order for an IBM 60GXP. I hope that newegg and places like this stick around for a while and the whole comp industry slowdown doesn't hurt them too much.

 

[compuwiz1]

You do it by being 3-4 days behind. Most people / companies don't have the nuts to pull it off. You put the first several hundred customers off for 3-4 days, then pay for the first 3-4 days of business with the next 3-4 days. You have to be very smooth with giving reassurance to the first 3-4 days business, but it all blows over in time.

The model can work, especially in a time of constantly declining prices. The first 3-4 days orders, cost then less to fill than if they had done it immediately.
In business, the longer you can hold a sum of money, ie., interest bearing sweep account, the better. There is a fine line between what is legal and what you can get away with. :Q