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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aslaw - Wednesday, February 15, 2006 - link
This is my first post: I've perused your site but linked in today through Ben's Bargains, and I was fascinated by the Newegg story! I've purchased from those guys and they are, indeed excellent vendors. Having now "seen" their operation and read about their commitment to quality, they'll remain a first choice when I am shopping.And you, Anand, have performed a real service by showing this to the web community. I'm only sorry that when I was in Los Angeles 2 weeks ago that I didn't happen upon the Newegg facility (hard to miss with the big sign on the front wall!!
Andy
Johnclarkiii - Wednesday, February 15, 2006 - link
I have been reading your articles fairly often because I am a web subscriber to CPU. I really do enjoy your writing. In this case I enjoyed it so much I had to join your site and tell you thank you for your excellent writing but especially for the Newegg warehouse article. I buy primarily from Newegg and I work in the warehouse at Carpet Bonanza in Zeeland MI. It is a different kind of warehouse but it is very intersting for me to see just how Newegg handles the product. Again, thenk you very much. Keep up the great writing and I look forward to more interaction with you in the future.John
Wesleyrpg - Wednesday, February 15, 2006 - link
hey....anandtech is a worldwide site, so why is the competition only for americans?not very diplomatic....us aussies get screwed over again. (grrr stupid xbox360 delay)
Ricardo - Wednesday, February 15, 2006 - link
Wow Anand, how much are they paying you? Those are some seriously cool conveyors and bins, but this article reads like an advertisement or promotional campaign the whole way. Great detailed overview of the order process, nonetheless.kmmatney - Wednesday, February 15, 2006 - link
NewEgg has been an advertiser on Anandtech for quite a while - these advertisers help keep Anandtech running, so any advertisement is deserved. Regardless, it was an interesting article.Staples - Wednesday, February 15, 2006 - link
I am surprised it took someone so long to mention that this is 100% pure advertisment.nomagic - Wednesday, February 15, 2006 - link
Newegg could be paying AnandTech, but who cares as long as it is a good read. This article is informative and interesting.krwilsonn - Wednesday, February 15, 2006 - link
I love Newegg...been perfect so far and even sent me a thank you for being a customer letter with a free t-shirt, eVGA keychain, and Newegg sticker out of nowhere just because I placed a couple orders earlier in the year. Oh and as far as the UPS vs. Fedex debate, would you feel more comfortable if Fedex left your $500 CPU on your porch just because you are not home? Sure it is a pain but come on, it is worth the extra hassle to keep your gear out of harm's way.ohnnyj - Wednesday, February 15, 2006 - link
Just ordered a Logitech G7 mouse on Sunday, arrived today (using UPS Ground). Great work Newegg!
John
Harkonnen - Wednesday, February 15, 2006 - link
Canadians can't enter :(boo
*cries*