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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Postoasted - Tuesday, February 14, 2006 - link
First off great article. Have never bought from Newegg before, but after reading about it here I feel assured that they're not some fly-by-night chop shop. As a potential customer the fact that my package will come with peanut styrofoam is a big negative. But if the price is right I guess I can live with it.allometry - Wednesday, February 15, 2006 - link
I'm not sure if NewEgg is using the biodegradable peanuts made from a corn starch base. When you finally do place an order, grab one of those peanuts and run it under some water to see if it disapears.plonk420 - Tuesday, February 14, 2006 - link
have you a solution as versitile as peanuts? i sure don'tplonk420 - Tuesday, February 14, 2006 - link
how soon until they pay off the setup and their prices can go down to what they were when they first started? i miss those days...lsman - Wednesday, February 15, 2006 - link
Not when they are expanding to like China and rest and have to pay for those. :Dshabby - Tuesday, February 14, 2006 - link
Looks like a basement operation to me, they sure fooled me....Zebo - Tuesday, February 14, 2006 - link
Always like to read about orgins. Maybe next time. I've never had a complaint with newegg but there are others "just as good" and cheaper too such as Mwave.com Zipzoomfly.com for example. What really sets newegg apart is thier fantastic database for customers to search for exactly the prodcuts they are looking for and once found get a set of wonderful 360 degree pictures of the product! Great job!Hondaman4ever - Tuesday, February 14, 2006 - link
This is a good article for those Industrial Engineers, pretty interesting facility layout.JumpyBL - Tuesday, February 14, 2006 - link
Wow, great article. I used to do recieving work and Newegg's setup really makes me want to work there, looks fun, scanning in all the new products and handling tech stuff all day. Looking at all the CPU and memory products laying about is enough to give any tech enthusiast a stiff one. Thanks for the article and the contest Anandtech.thatsright - Tuesday, February 14, 2006 - link
GREAT Article!!One of those rare AT article that held my attention 100%, and I read EVERY page.