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Print 80 comment(s) - last by JKflipflop98.. on Oct 6 at 5:58 PM

Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing.  If Soverain is successful in getting an injunction against Newegg, the company may be forced to "stop or alter certain of our business activities."

In the future, Circuit City -- although its physical stores went bankrupt, a liquidator purchased the company's online business and keeps it running -- will lead the charge of online businesses that aim to derail Newegg.

The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg's largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.



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mixed feelings
By MadMan007 on 9/28/2009 4:15:56 PM , Rating: 5
Not that it matters too much to me whether a company I do business with is public or private but one advantage private companies have is they don' have to answer to shareholders or whatever expectations Wall Street has set. Newegg does have a great reputation for the most part as an etailer, especially in regards to customer service, I just hope they can keep it up with external shareholder and Wall Street pressure.




RE: mixed feelings
By TomZ on 9/28/2009 4:37:29 PM , Rating: 3
That's a really good point, and I kind of shudder when I hear news of Newegg doing an IPO for the same reason.

I also wonder why they are doing an IPO at all. Clearly $175M is not much compared to their overall sales, so it probably isn't about them needing that cash for some purpose. They must intend to sell a lot more stock in the future to finance an overall larger growth strategy.


RE: mixed feelings
By omnicronx on 9/28/2009 5:34:28 PM , Rating: 5
Thats 2 billion sales, not profit. I hear their margins are super slim, something like 1.5%, so doing the math 1.5% of 2 billion = 30 million. Looking at it this way, 175 million may be too much.


RE: mixed feelings
By GeorgeH on 9/28/2009 6:25:58 PM , Rating: 5
Very close; the exact numbers (2008) are 1.4% and 28.8m:

http://www.techcrunch.com/2009/09/28/neweggs-ipo-f...


RE: mixed feelings
By MadMan007 on 9/28/2009 8:57:00 PM , Rating: 2
Thanks for the info. It looks like etailing is a tough business even for premium name companies.


RE: mixed feelings
By Cypherdude1 on 9/29/2009 11:53:56 AM , Rating: 2
quote:
one advantage private companies have is they don' have to answer to shareholders or whatever expectations Wall Street has set

I agree. The first thought I had when I read this was, "there goes Newegg." Public companies must answer to Wall Street and they must show a profit every year. When a company loses money, their stock get hammered. Expect to see marked changes in the near future. I suspect these changes will include less selection due to their dropping items which don't sell as well, higher prices, stricter return policies, fewer personnel, and less phone contacts. It looks like we're going to have to read the fine print before we buy from Newegg now.


RE: mixed feelings
By kmmatney on 9/29/2009 2:18:53 PM , Rating: 2
Not only do they have to show profit, but they have to show that profit is increasing each year. They can make $25M profit in a year, and still look bad and have the stock go down. I don't see this as a good thing - I'm thinking some of the higher ups just want a big payday. That's what happened with my company after going public - a few higher ups became millionaires, while the company went bankrupt several years later.


RE: mixed feelings
By astralsolace on 9/30/2009 1:27:11 PM , Rating: 3
That's not true.. What happens is that when a company doesn't meet the industry analysts' expectations, people re-evaluate their investments.

If a company is reliably profitable, even if they're not increasing their profits by huge amounts each year (except for inflation), then their stock will still be worth owning.

Companies with stable/reliable profits, but without expansion usually send their profits back to the shareholders, i.e. dividends. They're called value stocks.


RE: mixed feelings
By JKflipflop98 on 10/6/2009 5:58:22 PM , Rating: 2
You are obviously correct. However the real issue here is that the newegg that we all know and love is going to tear itself to peices trying to keep that "constant expansion" image going.

Less staff, more hours for the ones that stay, higher prices, stricter return policy, and many other wonders of our capitalistic regime will be implanted upon them.

In short, they just took away all the reasons people love Newegg. The IPO is going to kill them.


RE: mixed feelings
By afkrotch on 9/30/2009 5:25:09 AM , Rating: 2
It's only tough, when you try to provide customers with low prices. With going public, the possibilities of increased prices for increased profit looms in the distance.

I fear I may need to move elsewhere to continue getting good prices on my electronic purchases.


RE: mixed feelings
By rs1 on 9/28/2009 6:30:02 PM , Rating: 2
I want to know the number of shares involved in the IPO. Given their current EPS of $0.34, that should make $10-$12 a reasonable target price (assuming a 30-40 P/E ratio...if it gets the ridiculous 60+ that Amazon currently has, then maybe $20 isn't out of the picture). That would mean that they'd need to offer at least 17.5 million shares for it to be smart to buy into the IPO. Fewer than that, and the IPO share price may be too high.

Somewhat interesting, considering that there are currently only about 63 million shares in existence. Is it typically for companies to offer up ~28% of their shares in their IPO? That number seems a bit high, all things considered.


RE: mixed feelings
By ChristopherO on 9/28/2009 7:52:55 PM , Rating: 2
You guys are also forgetting something. Debt. They can increase margins somewhat by retiring debt (which they don't seem to have too much). It also wouldn't surprise me if they relocate out of California with the IPO proceeds. It is insane to run a business in this state, especially one that's in the warehousing or distribution business. Just going to Nevada would save them a fortune.

That would trim their tax burden quite a bit, plus labor expenses would fall. You need to remember, Amazon makes such great margins because they build warehouses in an intelligent manner. Typically in low-tax states located directly next to a major UPS shipping hub.


RE: mixed feelings
By MadMan007 on 9/28/2009 8:54:26 PM , Rating: 2
I'm actually curious how Amazon gets around charging sales tax in states where they 'have a warehouse.' Are the warehouses subcontracted somehow?


RE: mixed feelings
By rs1 on 9/28/2009 9:30:15 PM , Rating: 2
Maybe they do it the same way Xotic PC does, by shipping the order first to an out-of-state warehouse, and then shipping from that warehouse to the customer.

quote:
For Sager Orders where the customer resides in California, Xotic PC will cover the added shipping expense to have your machine sent into our Nebraska facility to avoid California Taxes (by default). If a customer prefers to pay the California Tax, this can be set up by request.


RE: mixed feelings
By MadMan007 on 9/28/2009 10:38:20 PM , Rating: 3
Well that's an idea but I know they don't do that because I've ordered stuff from Amazon direct, not an associate store, and the return address is in my state but no sales tax. I'm not certain whether their warehouses are some sort of colocated distribution company where multiple companies fulfill orders, or maybe a company solely to fulfill Amazon orders but I know they don't do any shipping trickery.

I'm surprised that place you mentioned is willing to risk their business by doing that since they have facilities in California either way it sounds very shady.


RE: mixed feelings
By an0dize on 9/29/2009 9:14:05 AM , Rating: 1
You know you still actually owe those taxes to the IRS right?


RE: mixed feelings
By nafhan on 9/29/2009 9:44:34 AM , Rating: 2
Yes, and I'm sure he goes through pays them each year when he does his taxes, just like you and everyone else on the dailytech forums...


RE: mixed feelings
By mattclary on 9/29/2009 10:52:09 AM , Rating: 3
IRS does not deal in sales tax. Sales taxes are state, not fed. But, you are supposed to pay them to the state. Sales taxes are on the purchase, not the sale, so the buyer owes them. It's just a nifty way for the govt to double dip, since the sale is already taxable as income for the seller.


RE: mixed feelings
By erple2 on 9/29/2009 11:41:56 AM , Rating: 2
The only rule I know of is that the federal government isn't allowed to double dip for any given taxpayer. State taxes can (and do) more or less whatever they want with their tax codes.


RE: mixed feelings
By ChristopherO on 9/29/2009 1:54:20 PM , Rating: 3
You're forgetting there is a federal gas tax, which is based on income you've already paid taxes on. Anyone can double-dip in any way they want. That's why VAT is so creepy. A new way to triple-dip without the consumer knowing, since the vendor pays the tax on *your* behalf.

I think withholding should be outlawed. Force everyone to send their taxes in every month... You do that, and there would be rioting in the streets over punitive taxation. It's amazing how a government can totally hose a person when they're unaware of it.


RE: mixed feelings
By afkrotch on 9/30/2009 5:35:32 AM , Rating: 2
Tax is all kinds of crazy.

Business A sells items gains revenue. Their revenue is taxed.
Part of the revenue is given to employees as income. It is taxed.
Employee buys goods/services with their income. They are taxed.

At least that's how I see it going on. Maybe the revenue isn't taxed and only profit is taxed.


RE: mixed feelings
By lightfoot on 9/30/2009 2:44:20 PM , Rating: 2
Only profit is taxed for businesses in the US, but they then spend that profit either in dividends to share holders (which is taxed again as capital gains) or they use it to invest in their company (which is taxed when they buy improvements or new equipment.)

Due to the tax laws of this country, the biggest competitive advantage a company can get is to be operating under bankrupcy protection. It's practically a business model in the airline industry.


RE: mixed feelings
By ChristopherO on 9/29/2009 1:50:02 PM , Rating: 3
quote:
Are the warehouses subcontracted somehow?

Some are. They are direct shipped from some of their distributors. The transaction is basically, "Here Ingram, you need to send a book to this guy over here, we don't care how you do it." That's why some Amazon labels are fairly inconsistent. Inconsistent label-stock is usually a giveaway that it's an outsourced warehouse.

Technically most states require you to pay sales tax on all Internet transactions. You typically need to declare the amount on your yearly tax forms. However, the state would never know unless they subpoena every e-tailer for your records to discover the shipping address for your orders. I think it's one of those gray areas that the US Supreme Court hasn't addressed unambiguously (but seems to side with the states).

I pay the tax because I buy enough things on line that if I ever got audited it would be an obvious problem... Especially since Turbo Tax has a large screen that asks, "Did you buy anything on the Internet?" Pretty hard to claim ignorance when the state already knows you e-filed via Turbo Tax.

Amazon is my favorite store, but in fairness to the states, Amazon does sort of rely on people skipping these taxes. If anything it only seems fair to tax the origination state, and not the destination... That would also encourage states to offer tax-incentives to lure new companies.

The tax system is so backwards it makes me ill.


RE: mixed feelings
By peritusONE on 9/30/2009 1:13:07 PM , Rating: 2
quote:
I'm actually curious how Amazon gets around charging sales tax in states where they 'have a warehouse.' Are the warehouses subcontracted somehow?


I'm in one of very few states with an Amazon warehouse, and I always get charged state tax at the time of purchase. I actually even worked at one of the two warehouses in my state a few years ago.


RE: mixed feelings
By inperfectdarkness on 9/29/2009 11:37:38 AM , Rating: 3
they'll start operating for shareholders. the prices will skyrocket, the service will suffer, and eventually--they'll turn into another tiger direct.

fortunately, the cycle of life will keep renewing itself. another private upstart will start selling things--without having shareholders to answer to. i've loved new egg, and i will love whomever succeeds it after the IPO burns the soul out of the company.


RE: mixed feelings
By callmeroy on 9/29/2009 2:40:48 PM , Rating: 2
ugh tiger direct....personally for me my worse "customer-to-business" experience in my life thus far.....

this was back many years ago before most people even heard of them though, so maybe they have improved since then...


RE: mixed feelings
By bighairycamel on 9/28/2009 6:39:54 PM , Rating: 3
I'm with you. With new pressure to increase profit margins year after year, I just hope their executives are creative enough to think of ways to stimulate growth rather than just raise prices, raise prices, raise prices.


RE: mixed feelings
By ExarKun333 on 9/29/2009 8:57:45 AM , Rating: 2
Yeah, because making a profit year after year isn't good enough for some reason. Profit margin doesn't have to increase year after year if you are making good money. Shareholders can go to h@ll...


RE: mixed feelings
By TomZ on 9/29/2009 9:00:43 AM , Rating: 2
The profit margin % doesn't have to grow - just the absolute (total) profit has to grow. So if they are growing their sales revenue and holding profit margins, that will make investors happy.


RE: mixed feelings
By KoolAidMan1 on 9/28/2009 7:02:48 PM , Rating: 2
Hopefully they will do as Amazon has done and actually improved in terms of customer service and prices as they have grown to be more successful, same with other big retailers like Costco.

Actually, one place where I find Amazon to be superior is that all return shipping fees on defective merchandise is covered by them, while with Newegg all return shipping is covered by the customer. Well, that and the whole "no 10% sales tax in CA" thing is another big positive for Amazon.

Either way, hopefully Newegg continues to get better. I personally think that their raw selection is their biggest advantage; for high tech goods nobody can touch the amount of stuff that they carry. Their prices are good but I can also find comparable or better prices from Amazon or MWave (and with Amazon I skip 10% sales tax and get unlimited 2-day shipping for $80 a year). I think Newegg actually has a little ways to go to match Amazon or other retailers in terms of customer service, their website can keep getting better, etc etc. Hopefully this IPO doesn't get in the way of them doing that.


RE: mixed feelings
By Mojo the Monkey on 9/29/2009 2:34:13 PM , Rating: 2
All hail costco for their ridiculously good customer service, no-questions return policy (takes the place of a warranty most times, unbelievable) and excellent pay for their employees (considering the work). One of the few major corps I like.


RE: mixed feelings
By burpnrun on 9/28/2009 9:40:49 PM , Rating: 2
Note that there is NO mention in the release that they will actually open a Canadian distribution centre. Their shipping costs from the U.S. warehouses are still exorbitant, Also, it's always much cheaper to price-match with NCIX to get the same price if NE is lower (increasingly less so), there's no PST if one is outside NCIX's BC distribution point, and the goods arrive much sooner from NCIX.

BUY CANADIAN. NewEgg is US. Turn the tables on them!


RE: mixed feelings
By Gannon on 9/29/2009 4:46:32 AM , Rating: 2
Newegg is irrelevant to those of us who know about NCIX.

I've never found bettter prices @ newegg, while newegg may have more selection of some items, newegg's prices still can't compete with NCIX, and where NCIX is more expensive, NCIX is almost ALWAYS willing to match prices of competitors.


RE: mixed feelings
By omnicronx on 9/29/2009 4:34:39 PM , Rating: 2
Ncix will pricematch pretty much anything on the Canadian Newegg site. As long as it is in stock that is.. I've pricematched a good 15 things since the Newegg site opened.

That being said, their prices have risen over the years, and I have found myself just going to one of the tigerdirect/canada computers retail stores in my area, as the money I was saving at Ncix was offset by the shipping costs.. The fact that I can go into the store and get the product I want right away is always appealing too..


RE: mixed feelings
By pnyffeler on 9/29/2009 12:08:16 PM , Rating: 2
While everybody on this site is worried about how NewEgg will change and how it will affect them, I tip my cap to the folks who built such an awesome company from the ground up. They put in all the hard work, and now they're about to be rewarded.

For anybody who's ever had the guts to go out on a limb to start a company of their own, this is the dream. Now, if they're really smart, they'll cash in and get out before they face the sad realization that they don't run the company anymore....


Great Company
By wempa on 9/28/2009 4:19:14 PM , Rating: 2
I have been a loyal Newegg customer for years. What's not to like about them ? Great prices, great selection, no hassle returns. There doesn't seem to be much awareness of them outside of the technical crowd. I think with a little bit more advertising to help spread the word, they could be extremely successful.




RE: Great Company
By Parhel on 9/28/2009 4:34:22 PM , Rating: 2
quote:
There doesn't seem to be much awareness of them outside of the technical crowd. I think with a little bit more advertising to help spread the word, they could be extremely successful.


I think you may be underestimating them . . .

From the article:

quote:
In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.


$1.9 billion is a lot of sales.

Still, a $175 million IPO doesn't seem at all unfair given those numbers.


RE: Great Company
By TomZ on 9/28/2009 4:45:01 PM , Rating: 3
I'm sure this IPO is just a small fraction of the total number of shares issued and/or authorized for Newegg. The company is clearly worth a lot more than $175M.


RE: Great Company
By wempa on 9/29/2009 1:09:17 PM , Rating: 3
Oh, don't get me wrong. I don't think they are tiny, by any means. I just think they have to make people more aware of them. The average person is very familiar with Amazon, but Newegg doesn't seem to have that level of familiarity yet. Only the more technical people I know use Newegg. I definitely think there is room for growth. I also haven't yet had any bad experiences with them as some other people here have.


RE: Great Company
By Oregonian2 on 9/28/2009 6:36:42 PM , Rating: 2
I've been a customer of them for many many years as well -- but their prices aren't anywhere near as good as they once were. I've also had them ship me something sold as "new" (NOT a refurb or return or the like) but was obviously a used/returned item. I still like doing business with them, but they've jumped off the pedestal that I once had them on.


RE: Great Company
By Morphine06 on 9/28/2009 8:14:15 PM , Rating: 2
This is exactly how I feel.

I live in the SF Bay Area and ewiz.com is my new favorite. Cheapest UPS shipping is still next day delivery.


RE: Great Company
By GoodRevrnd on 9/29/2009 3:52:29 AM , Rating: 2
That's because ewiz is in San Jose... Also, their RMA department can eat a dick.


RE: Great Company
By PhoetuS on 9/29/2009 9:13:11 AM , Rating: 2
I agree entirely with your assessment of their RMA dept.

I stopped doing business with them because of their bullshit RMA tactics.


Cycle of Life
By Sulphademus on 9/28/2009 4:08:09 PM , Rating: 5
Geeks buy shares of new public company.
Company issues dividends.
Geeks spend dividend earnings on Newegg shellshockers.
Newegg issues more dividends.
Geek shareholders buy more shellshockers.

I know thats how it would work with me.




RE: Cycle of Life
By Spivonious on 9/28/2009 4:16:25 PM , Rating: 3
You nailed it.

I guess I should set up my ETrade account now to get ready for this.


RE: Cycle of Life
By dubldwn on 9/28/2009 6:22:47 PM , Rating: 2
Even if it's a token number of shares, I will buy Newegg. I just want to see it on my list of stocks. Huge fan.


RE: Cycle of Life
By powerboxing on 9/28/09, Rating: -1
RE: Cycle of Life
By dubldwn on 9/28/2009 7:01:03 PM , Rating: 2
I use OptionsXpress and I'm happy with them. They have a cool mobile app. What's wrong with e*trade?


RE: Cycle of Life
By callmeroy on 9/29/2009 2:45:04 PM , Rating: 2
I sure hope NO ONE in this thread falls for using that guys referall code....


RE: Cycle of Life
By therealnickdanger on 9/29/2009 12:59:03 AM , Rating: 2
I've already picked which of my stocks I'm selling to buy into it!

NEGG?
NEWG?
NEWE?


RE: Cycle of Life
By skyyspam on 9/28/2009 9:13:03 PM , Rating: 2
Not issuing dividends. Probably won't.

I'll buy a few thousand shares when it hits the street, I've always liked newegg's business model and I expect they have great plans for increasing market share. Definitely will long this.


Awesome
By nextJin on 9/28/2009 4:05:06 PM , Rating: 2
Time to make some money. Newegg has been the only place I shop for hardware in the last decade. I will be purchasing as many shares as possible when/if this happens.




RE: Awesome
By Regs on 9/28/2009 5:12:59 PM , Rating: 3
Their profit margins are slimmer than you think. Don't jump on the bandwagon yet.


RE: Awesome
By nextJin on 9/28/2009 8:18:02 PM , Rating: 2
Links?


RE: Awesome
By Regs on 9/29/2009 1:45:50 PM , Rating: 2
I'll stick with Newegg and Amazon
By pepito perez on 9/29/2009 12:08:12 AM , Rating: 2
I usually buy from Newegg and Amazon. Recently, lured by a 30$ discount in the ps3 slim, I ordered from Dell.

This is what I expect from a major online retailer:

1. The availability is clearly stated, up front. If the item is out of stock you can pre order it or get notified when becomes available, but you will not be able to order it.
2. The vendor is clearly stated. If it's a 3rd party the major online retailer will take responsibility for whatever problems might arise.
3. The delivery date (usually less than a week) is clearly stated. Your date is not pushed back by a month. Never.
4. Their customer service is helpful and polite. They don't try to pass you from department to department, push you into keeping your order,etc, etc.

Dell didn't meet any of those expectations. They will sell you out of stock items from third party vendors without warning, and then push back more than 1 month the delivery date.

So I canceled, got a 7$ rebate for all the mess, and 5 min latter I had my PS3+controller ordered from Amazon, on stock, no taxes, discount in the other items (not in the ps3), 2 days guaranteed free delivery. All together less than two$ more expensive than my original Dell command.\

I believe the best way to serve the community is to let know as many people as possible how Dell works, so nobody gets fooled about what to expect.




RE: I'll stick with Newegg and Amazon
By Sazar on 9/29/2009 9:32:30 AM , Rating: 2
The issue with this is this is your anecdotal experience.

For better or worse, Dell does offer one of the larger online catalogs of IT equipment, top to bottom. I have had some minor issues with Amazon, Dell and Newegg (3 sites I order from typically) but for the most part, all of them work well and get me the items I order within the time-frame I expect.

All have good customer care and return policies, with Amazon and Dell having lower costs for returns. And if you look around, you will see horror stories with all of the online e-taillers.


By pepito perez on 9/29/2009 5:52:34 PM , Rating: 2
I agree all the dealers have horror cases. My warning is not about my case (which affected a number of people but could still be considered one-off) but about the fact that Dell sell out of stock, 3rd party items without telling you. In consequence the consumer can't make an educated choice of the risks they are taking when ordering from Dell.

I'm not trying to moan about my problem (is done and dusted) just to help other consumers when shopping around.


Question about name
By borowki2 on 9/28/2009 4:53:10 PM , Rating: 1
I've shopped at Newegg.com for many years now. One thing I've always wondered about: Does the company have anything to do with the old Egghead software chain?




RE: Question about name
By Ordr on 9/28/2009 5:02:24 PM , Rating: 2
Nope, totally different entities.


RE: Question about name
By wempa on 9/29/2009 1:14:45 PM , Rating: 2
Wow, I always thought Newegg was born from Egghead Software. That's not true. Amazon.com bought Egghead software when they declared bankruptcy. Interesting stuff.

http://en.wikipedia.org/wiki/Egghead_Software


International Sales
By Nehemoth on 9/28/2009 4:56:58 PM , Rating: 3
Lets hope then so they begin to accept international orders, even I would more than happy that they accept International credit cards and ship inside United States.

I don't like to depend on friends so they're make my purchases.

If they want to compete with Amazon, they're should be more open to payment methods.




RE: International Sales
By npoe1 on 9/28/2009 8:03:55 PM , Rating: 2
I have the same issue.


Customer Service?
By nowayout99 on 9/28/2009 10:17:31 PM , Rating: 5
Seen it before when companies go public. The first thing to suffer, to appease Wall Street, is customer service.

I hope Newegg is the exception, but I'm concerned.




This is gonna be good.
By Vim on 9/28/2009 3:58:55 PM , Rating: 2
Time to make some easy money off of this.

First, I saved thousands of dollars from buying from them. Now, I am gonna make thousands of dollars off of them.




RE: This is gonna be good.
By Zstream on 9/28/2009 7:25:57 PM , Rating: 2
How is it going to be good? Public traded companies are notorious for trying to appeal to traders. With the slim margins, overall lackluster IT sales I fear they committed suicide.


Oh well
By Ben on 9/29/2009 1:08:56 AM , Rating: 3
Another one bites the dust.

I'm sure in less than 2 years they make all kinds of changes to "improve customer experience" and "maximize profits for shareholders". Then they'll start down that slow road of death where they lose touch with their customers and become more interested in making money.

ie: buy.com, etc.




This is bad news.
By mxnerd on 9/29/2009 2:52:02 AM , Rating: 3
I believe this is bad news for Newegg customers.

Shareholders are going to push for more profit, and that usually means poorer customer service and higher price for products. :(




meh
By Motoman on 9/29/2009 11:18:49 AM , Rating: 3
I used to spend upwards of $20k a year with Newegg - then some of their policies changed, especially with motherboard and monitor returns, and I went elsewhere for the most part. Occasionally I still buy something from them, and for the most part it's fine, but there's LOTS of good alternatives out there. eWiz currently gets virtually all of my business, and has for the last several years - here's a few places to try:

www.eWiz.com
www.3btech.net
www.directron.com
www.gearxs.com
www.geeks.com
www.monoprice.com
www.mwave.com
www.starmicroinc.net <-- really only good for cheap CPUs
www.zipzoomfly.com




why
By GhandiInstinct on 9/28/2009 4:12:53 PM , Rating: 2
didnt they do this earlier? we could have been alot more richer, now that the market is more saturated wont the shares cost a crap load?

i've never traded so I'm not sure if NewEgg is where I want to start...




newegg.ca
By manoj252 on 9/28/2009 5:10:29 PM , Rating: 2
They've had a Canadian website since October 2008. They do not have warehouses in Canada yet, so the shipping charges can be fairly high. Not all products are available in Canada either :(




By dragunover on 9/28/2009 8:13:26 PM , Rating: 2
They own Tigerdirect, Compusa, and "Circuit city"

Why would they want to take down Newegg???

They're their main - if not only online competition.




Bad for consumers...
By iFX on 9/29/2009 8:24:10 AM , Rating: 2
Prices will go up, service and turnaround time will go down.




When though???
By Breathless on 9/29/2009 8:55:43 AM , Rating: 2
Any idea WHEN this is going to happen? I want to buy at the lowest possible price :)




Saying
By btc909 on 9/29/2009 10:23:54 AM , Rating: 2
"there's no crying in baseball"

The same goes with hardware.

"there's no money in hardware"

Now in the 80's & early 90's now you could make some money in hardware.




Not good move
By p05esto on 9/29/2009 10:57:36 AM , Rating: 2
NewEgg's prices are not so great anymore - sometimes yes, but often there are better deals out there. NewEgg also doesn't always stock a lot of variety of products depending on what you are looking for. They are spread too thin in my opinion.

The IPO will be bad for this company as they will instead focus on making shareholders happy and do more worrying about share price than customers.

These companies should not try and grow like this...they'll lose their strong base of followers. Look at Google, they are now just another big corporation seeking profits by any means possible. Nothing special about that company any longer now that they are so large and mainstream. Screw em.




UK
By explicit4u on 9/29/2009 5:28:26 PM , Rating: 2
I think they could easily dominate the UK market if they came here!




So much for...
By TimInPA on 9/29/2009 9:23:04 PM , Rating: 2
So much for...
Free Shipping
Shell-shockers
Intrusive advertising on the site

They go IPO, and they will go to crap. The writing is on the wall.




Not perfect
By Maxfli81 on 9/30/2009 3:09:09 AM , Rating: 2
I hope that this will enable them to get better and become an AUTHORIZED retailer of Canon and Nikon camera gear. I went with J&R, B&H, and Amazon even though they had higher prices over Newegg just because they were all authorized camera dealers. Makes a difference to the customer who is spending over $2k on camera gear. I've emailed Newegg about becoming so to prevent lost sales like mine, and all I got were canned responses in bad english from customer service.




2001?
By deeznuts on 9/30/2009 3:18:38 AM , Rating: 2
They were founded in 2001? Wow, my first purchase there was june 2001. Did not know they just opened that year. been buying from them since.

It was a Kyro2 video card, was broken, sent it back and ordered a Geforce2 Pro and they sent me a GF2 Ultra! I still remember that. Ahh, those were the days.




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