Established in 2001, Newegg has quickly become a household name among AnandTech readers. They originally won the hearts of many readers by offering extremely competitive prices and keeping customer service a top priority. Since their humble beginnings the company has grown tremendously, with net sales in 2005 of approximately $1.3 billion, a 30% increase over the prior year. Newegg currently stocks over 60,000 different products and ships up to 25,000 orders per day, 98% of them within 24 hours.

On a recent trip to Los Angeles we were given the opportunity to take a tour of one of Newegg's warehouses. While we've been able to tour Newegg's facilities in the past, this time they let us publish pictures and take you on a virtual tour of their facilities - effectively letting us follow the path of an order after it is placed online. Newegg sweetened the deal even more by working with us to give away some of their product to you all, but more on that later.


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Newegg is trying to target 2 day turnaround for all shipments, regardless of shipping method, thanks to strategic placement of their warehouses all over the country. The warehouse we toured is a medium sized generation 2 model at 180,000 square feet, Newegg’s latest warehouse is a third generation model at 300,000 square feet in Tennessee designed to service the east coast.


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What you see in the picture above is a glimpse at where the action takes place in Newegg's 180,000 square foot facility, this article will give you a brief look inside Newegg and how your orders get from their website to the shipping truck so very quickly.

The Beginning
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  • Minot - Monday, February 20, 2006 - link

    Anand, did Newegg give you any insight into their refurbished product opteration? I'd be interested to know where the items come from (i.e. percentage from working returns and percentage from manufacturers) and how often they arrive at Newegg. I'b been buying refurbished parts from Newegg for years and I've found some brands that always come with full accessories and others that are hit and miss. Is there any rhyme or reason to know the accessory status of the item before you order?

    Great article! Keep it up! -MINOT-
    Reply
  • JumpyBL - Monday, February 20, 2006 - link

    Any winners yet? Reply
  • DAPUNISHER - Saturday, February 18, 2006 - link

    It is Willy Wonka's Chocolate Factory for Computer enthusiasts :P Reply
  • neweggvp - Friday, February 17, 2006 - link

    To confirm what Anand explained, Newegg did not pay Anandtech for this article. Anand and Newegg just thought it would be nice to show a little bit of the Newegg operations.

    Newegg also has no affiliation with EggHead.

    Hope this clears up a couple questions.

    Best Regards,

    NeweggVP.
    Reply
  • andrep74 - Friday, February 17, 2006 - link

    It's completely a win-win situation. NewEgg gets advertising, costing them perhaps a lunch with Anand, several CPUs for a contest, and draws more consumers to their website. Anand gets a free meal, perhaps some free product, and draws more readers to his website with a contest. Now if that isn't capitalism, what is?

    My kudos to them both...
    Reply
  • PWNettle - Friday, February 17, 2006 - link

    Thanks for the article - it's cool to read how NewEgg does its thing.

    I've bought parts for 3 builds and some additional components from NewEgg and I've always been very happy with it all.

    UPS el cheapo shipping usually takes 3-4 days to reach me but it's not THAT big a deal since that's still pretty quick.

    The only thing that irritates me is that when I order parts for a complete PC they usually get shipped from 2+ locations - and it's painful to have every part for a new build EXCEPT the case, which arrives the next day. :)
    Reply
  • Davelo - Friday, February 17, 2006 - link

    Is Newegg related to EggHead Software? Remember them? Reply
  • Glenn - Friday, February 17, 2006 - link

    What a way to start my day!! Read this article and was enlightened and impressed with the way an order progresses and how they get them to me so fast! As usual Anand~ good work and thank you!

    Then I read all these bulls**t childish comments! I could go on for hours about what I'm thinking but all I really need to say is~ Anand has earned the respect of most of us because of his informative website and articles. I've gained most of my computer knowledge from his website since I first signed on in 1996. I really don't know what I would do without it. In my opinion, NewEgg owes some of its success to Anand and the exposure they gained in his forums. Particularly early on! I really don't mind if they paid Anand for the article, in fact, I hope they did! He earned it well before this article was ever written! A good part of these etailers profits are directly attributable to Anands website! With so many of us having the ability to share experiences, information and recommendations on this website they have benefited greatly! Keep it up Anand and I wish you continued success! My only recommendation would be to have the mods filter out the childish jerks that never seem to have anything productive to say about anything!

    And jnmunsey, where do you come off with comments like that? What an idiot!
    Reply
  • JBT - Thursday, February 16, 2006 - link

    Man I wish I could spend just 5 minutes in there with a shopping cart... Reply
  • amish - Thursday, February 16, 2006 - link

    i used my work email addy for the contest. not like i'm going to win, but i hope that any email that could be sent makes it through my employers spam guard.

    anyways, the pic of all of those CPUs just sitting there was awesome
    Reply

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