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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  • Rapsven - Tuesday, February 14, 2006 - link

    What's that for?
  • peldor - Wednesday, February 15, 2006 - link

    I just want some stats.

    You know like megapeanuts/s.
  • Jynx980 - Wednesday, February 15, 2006 - link

    The peanut guns are employed by security at the New Egg facility. They shoot about 15 peanuts in a tight grouping which leave painful welts for slacker employees and persons accused of theft.
  • Howard - Tuesday, February 14, 2006 - link

    Strange.
  • creathir - Tuesday, February 14, 2006 - link

    Though Anand, use your sway to get them to GET RID OF PEANUTS!
    I would MUCH rather get those plastic bags of air than messy peanuts...
    - Creathir
  • CheesePoofs - Tuesday, February 14, 2006 - link

    Same here. Air bags are much cleaner and don't get everywhere like peanuts have a tendency to do.
  • johnsonx - Thursday, February 16, 2006 - link

    yeah, hate those peanuts. They're so hard to pick up if you happen to spill some.

    BUT, I bet peanuts are a good bit cheaper for such a high volume shipping operation. Do you want to pay more for bags of air?
  • F22 Raptor - Tuesday, February 14, 2006 - link

    Nice in depth article and pitures, it was very interesting!

    I also entered the giveaway!

    :)

  • Cygni - Tuesday, February 14, 2006 - link

    I have to say, im pretty impressed. I didnt expect that level of automation and technology. Guess i shouldnt be surprised. It IS newegg, afterall.
  • gerf - Tuesday, February 14, 2006 - link

    I expected a little more automation. Of course, I work for a company that makes things like this (similar at least). Mostly we do automotive machines though.

    But, there are a few factories in the world that are completely automated similar to this warehouse, but even more so.

    Pallets can be tracked and moved to the exact part of the plant that the parts are needed, automatically loaded, and automatically assembled, including a multitude of safeguards for people, quality, machine production...

    Yeah, it's neat stuff.

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