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After getting a little egg on the face, Newegg works to ensure that customers receive their 20% cash back bonus

DailyTech broke the news last week that Newegg's Holiday promotion, which was co-sponsored by PayPal, didn't go exactly as planned. The promotion was originally scheduled to run from November 26 through November 28, but was abruptly pulled from Newegg's website after just a few hours of activity.

Newegg staffers worked the EggXpert forums to calm angry customers and even offered free gifts to those that were dazed and confused by the misinformation and lack of an official response from Newegg.

The wait is over, and Newegg has finally broken its silence on the matter. The company reports that the promotion far exceeded what they expected with roughly 16,000 ordered being taken during the short time the promotion was active. As a result, the funds allocated for the promotion was quickly depleted which led Newegg to end the promotion without warning.

"Unfortunately, some of our valued customers were in the process of making purchases and still under the impression that the promotion was in effect, and may have been inconvenienced or not received an expected benefit," said Newegg's Vice President of Merchandising, Bernard Luthi, on EggXpert's homepage.

Luthi went on to say, "Newegg prides itself on always providing the highest level of customer service. Customer satisfaction is our primary mission. As a result, Newegg will review all purchases made utilizing PayPal between 2:30-5:30 P.M. (PST) on Monday, November 26th and apply the "20% off, up to $50" to each customer placing an order using PayPal during that time period."

It appears that as long as your order was placed before 5:30 PST on November 26, you should have no trouble receiving the 20% cash back reward (up to $50). It is unclear, however, who will be footing the bill for the additional purchases: Newegg, PayPal or both.

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This doesn't suprise me
By PitViper007 on 12/7/2007 12:18:16 PM , Rating: 5
Newegg is one of the best E-tailers out there. If I've had a problem with something I've gotten from them, they've ALWAYS stood behind it and made sure I was satisfied. Kudos to Newegg for coming through again.

RE: This doesn't suprise me
By bravacentauri83 on 12/7/07, Rating: 0
RE: This doesn't suprise me
By Spuke on 12/7/2007 1:07:41 PM , Rating: 5
Wish that was the case with me and a new digital camera I bought over a year ago.
Some people can't be satisfied.

RE: This doesn't suprise me
By kilkennycat on 12/7/2007 2:32:20 PM , Rating: 5
Why ??

Did you drop it and Newegg refused to exchange it? Or what?

If you wish to make public complaints against a vendor, then at least be gracious enough to give specific facts about your complaints.

RE: This doesn't suprise me
By Parhel on 12/7/2007 10:45:28 PM , Rating: 4
at least be gracious enough to give specific facts about your complaints.

. . . otherwise, we'll make them up for you.

You forgot to add that part.

RE: This doesn't suprise me
By Locutus465 on 12/7/2007 12:32:17 PM , Rating: 2
Honstly I'm of the opinion that this is still poorly handled. They promised their customers the sale would run from the 26th to the 28th... Then when they realize how completely they screwed up they just turn around and say "my bad, I guess we'll knock off 2 full days of that and a portion of the first".

RE: This doesn't suprise me
By SanLC504 on 12/7/2007 12:53:40 PM , Rating: 5
If by "they," you mean Newegg, then you are sorely mistaken. This was PayPal's deal, PayPal was going to reimburse 20% up to $50 as long as you paid with PayPal. PayPal told Newegg that it would last three days, not three hours. Newegg wasn't the only one to advertise the promotion. Newegg was probably told by PayPal to spread the word, and they did so through e-mail and web advertisements.

Like I said before on the other page, Newegg didn't have to reimburse anyone. They could've said, "Well, it's PayPal's fault, go knock on their door," much like what PayPal is doing now.

In my experience, Newegg is always ready to go an extra step to make sure the customer is satisfied. PayPal is always ready to freeze your checking accounts if you complain about someone's shady service on eBay. Guess who I'm likely to side with on this argument?

RE: This doesn't suprise me
By fic2 on 12/7/2007 1:00:55 PM , Rating: 5
I have to agree. PayPal sucks. Ebay sucks. I bought a DVD on ebay and was sent a conterfeit. Complained to both paypal and to ebay. Both are still "investigating". I posted a negative review on ebay of the seller. It was taken down.

I would say with 99% certainty that it is newegg going the extra mile.

RE: This doesn't suprise me
By BladeVenom on 12/7/2007 1:59:51 PM , Rating: 2
Complain to the MPAA. Maybe they'll sue the seller or send the FBI after them.

RE: This doesn't suprise me
By Golgatha on 12/7/2007 2:11:16 PM , Rating: 5
No, they only sue their paying customers. No need to go after the real criminals (mass fabricators in China et. al.) when you can just further fleece the folks who pay your salary.

RE: This doesn't suprise me
By RjBass on 12/8/2007 1:15:08 AM , Rating: 2
Well said. I wish I could rate you up more.

RE: This doesn't suprise me
By MADAOO7 on 12/7/07, Rating: -1
RE: This doesn't suprise me
By enlil242 on 12/7/07, Rating: -1
RE: This doesn't suprise me
By tallcool1 on 12/7/2007 1:15:33 PM , Rating: 5
If by "they," you mean Newegg, then you are sorely mistaken. This was PayPal's deal

It may have been a PayPal promotion, but it was through Newegg. If newegg was advertising the promotion to buy stuff on their site and get discounts for 2 full days (up to $50), they (paypal AND newegg) did not honor that special. Both are accountable IMHO.

It may have been Paypal misleading the public and/or newegg, but newegg doesn't get a free pass on this either. Newegg management should have ensured that paypal would be able to commit to the contract, and if not, then they should pick up the tab for the remaining time on the special, in this case 2 full days. Later, newegg can sue paypal for breach of contract if they so desire.

RE: This doesn't suprise me
By mindless1 on 12/10/2007 10:23:52 PM , Rating: 3
It doesn't matter the tiniest bit whose promotion it was, because it was Newegg that advertised it to entice sales.

Similarly, if Newegg advertisesa product costs $100, it doesn't matter who manufactured the product. Really! It seems the only people sorely mistaken are those that think anything Paypal did matters. Paypal can pull the rug out from under Newegg at any moment and Newegg's resolution is through paypal, while the customer's is through Newegg.

Newegg did have control of what ads ran on their site and their emails. The moment that the funds ran out they had a basic requirement to put up notice and stop Paypal payments until this change in terms had been agreed upon by the customer making the purchase.

The nonsense about "while supplies last" doesn't cut it. You don't go to a store, see a price on a shelf and take it up to the register only to be told "you don' get what we advertised because we just decided we weren't making enough money if we sell it to you now". EVERYTHING is always "while supplies last", whether it be a Newegg deal or putting change into a newspaper machine to get one. Stating a date makes all the difference and that was what Newegg did to it's customers.
Paypal may owe Newegg something, or may not, but Paypal was not selling the product, the discount was a term of the sale, the seller being Newegg.

It's amazing how some people get confused about what is a very simple matter. Term of sale. Period.

RE: This doesn't suprise me
By nowayout99 on 12/7/2007 12:33:31 PM , Rating: 2
They tried (on the cheap-side), but it's still unfortunate that people are getting screwed even with NewEgg's offer.

RE: This doesn't suprise me
By afkrotch on 12/8/2007 8:11:58 AM , Rating: 2
Who's getting screwed? All 16,000+ users who made a purchase, using paypal, during the promotion are getting their 20% (up to $50).

Sure the promotion didn't last as long as intended, but that was Paypal's fault for that. It was also Newegg's fault for not placing a disclaimer saying "Promotion may end at anytime."

RE: This doesn't suprise me
By TomZ on 12/7/2007 12:47:14 PM , Rating: 2
Newegg is one of the best E-tailers out there.

Newegg fanboy. :o)

RE: This doesn't suprise me
By PitViper007 on 12/7/2007 1:48:10 PM , Rating: 5
Based on the service I've received from them? Darn Tootin' I am.

RE: This doesn't suprise me
By kilkennycat on 12/7/2007 2:40:04 PM , Rating: 4
Me too. 100%. After 4+ years of doing several $$thousands of personal business with Newegg. Even to the extent of them willingly paying return-freight and cross-shipping by 2nd-day air an immediate replacement of a then-rare enthusiast motherboard that was damaged in packaging at the manufacturer.

RE: This doesn't suprise me
By vanka on 12/7/2007 3:48:50 PM , Rating: 2
Same here, I buy all my PC stuff at NewEgg; their commitment to customer service cannot be matched by any other PC retailer/e-tailer. The one time I ever felt screwed (I had placed an order on a Friday afternoon and got it the following Thursday with 3-day shipping) and complained on; I got a response from a NE customer service rep the very next day. The complaint hadn't even posted yet.

After explaining why it took so long for me to receive the order (ordered after their closing time, processed/shipped Monday, received Thursday); he didn't give me the "we didn't do anything wrong, not our problem" line. I was reimbursed for my shipping charges, received a few small gifts, and got $30 credit for my next order; all for something that wasn't NE's fault. They won my repeat business (and most of the people's who take my advice) with that gesture of good will.

Now when I shop for PC stuff and I find some e-tailer based in Brooklyn or who-knows-where that undercuts NE by $5; it's a no-brainer, I go with the company I trust. So, yes, I'm a NE fanboy too.

RE: This doesn't suprise me
By kmmatney on 12/7/2007 6:19:00 PM , Rating: 2
Between work and home, I have 11 pages of orders on NewEgg (just searched my invoice list and pasted into Excel) totally $21,739.58!! I've only had to ever return one item, and that was handled without issue. SO yeah, NewEgg rocks.

RE: This doesn't suprise me
By KeypoX on 12/9/2007 4:06:16 PM , Rating: 2
newegg started going down couple years ago... they havent been the best for while now. But thats how it works really someone is the best then everyone finds out about them and then they raise prices lower standards and the originals move on to the next.

RE: This doesn't suprise me
By bigboxes on 12/7/2007 3:42:45 PM , Rating: 2
Count me in as well. Even if they aren't the cheapest (thought they usually have great prices) I can always count on the Egg to take good care of me. Sure, they have made me mad at times, but as soon as I voice my displeasure they have responded in a fair manner (within reason) and kept me satisfied. 5 star if you as me. Companies like Newegg are rare in this day and age.

RE: This doesn't suprise me
By frobizzle on 12/7/07, Rating: -1
RE: This doesn't suprise me
By TomZ on 12/7/2007 4:43:02 PM , Rating: 4
It was a joke, obviously missed by certain "downraters." I thought it was funny that anybody who says anything positive about Microsoft, Intel, Sony, AMD, Apple, etc. are immediately branded a "fanboy," but people can gush here all day long about Newegg and somehow that's different.

FYI, I'm a fanboy for the facts, and most of the pro-Microsoft message you pick up in my messages is because I take the time to clear up the FUD people spew about the company. Really I'm pretty neutral to all the big tech companies (and Newegg).

RE: This doesn't suprise me
By Rike on 12/7/2007 4:59:04 PM , Rating: 2
Facts are good. We can always use more facts.

Everybody seems to have an opinion, unfortunately not everyone forms those opinions after consulting available facts.

RE: This doesn't suprise me
By LostInLine on 12/7/2007 6:38:15 PM , Rating: 2
I order at about 2pm when they still had banners of the sale. I checked out with painpal, the transaction completed on the newegg side with the painpal login. That was it. No conformation of payment ever (net even on the painpal site).

Late monday, Newegg support said the payment did go through and i had to order again. I didn't argue since it was late and the last day of a rebate that was worth more than the 20%.

I definitely think the egg could have handled it better on the day of.

RE: This doesn't suprise me
By INeedCache on 12/7/2007 6:47:10 PM , Rating: 2
Newegg needs to get rid of that restocking fee, or lower it substantially. That's a rip-off. Especially if you want to just send an item back for a different one.

A little planning??
By Desslok on 12/7/2007 12:14:47 PM , Rating: 2
I find it hard to believe that Newegg couldn't see this happening before hand. They have been in business long enough and have run enough promotions to know how much traffic to except.

Having said that at least they are trying to make up for it.

RE: A little planning??
By artemicion on 12/7/2007 12:18:05 PM , Rating: 2
i'm sure the predicted the extra traffic. they probably didn't predict paypal renege on their offer.

paypal sucks. perfect example of a company that has a monopoly in a niche market and using it to leverage its bargaining position to the detriment of customers. who needs good customer service and accountability when there's no other reliable place to go for sending funds over the internet?

we need an alternative to paypal.

RE: A little planning??
By Souka on 12/7/2007 12:20:03 PM , Rating: 2
RE: A little planning??
By FITCamaro on 12/7/2007 12:28:29 PM , Rating: 2
Uh you mean Google Checkout? uses it. I wouldn't mind seeing using it either. Probably will, just a matter of time.

RE: A little planning??
By Spuke on 12/7/2007 1:52:13 PM , Rating: 2
If they do, I'll be moving to Google.

RE: A little planning??
By Silverel on 12/7/2007 2:24:47 PM , Rating: 2
Google+Newegg=Giggity giggity.

It'd be nice to have Newegg pop up in their sidebar ads when searching for any kind of hardware. Some of the companies that take up that space will make up for the cost of advertising with a good 10%+ markup. I've often relied on Newegg to give the best bottom line price.

RE: A little planning??
By compy386 on 12/7/2007 12:19:45 PM , Rating: 2
Clearly a case of someone wasn't really thinking. Not going to fault Newegg too much though. They always come through with good service.

RE: A little planning??
By marvdmartian on 12/7/2007 12:28:28 PM , Rating: 4
Yeah, and it kills me that in the various forums I've seen it discussed at (AT Hot Deals, for one), there's still people that are whining and crying about this, and slamming Newegg for it.
While I agree that the folks at Newegg should've realized the scope of what an offer like this would bring to their online store, and definitely should've slapped someone over at Paypal to make certain that it would last more than 3 hours (let's face it, Newegg was clearly going to have higher volume of sales than a lot of the other e-tailers that are doing this offer), it's certainly not all their fault. The simple fact that they're offering anything at all to assuage the feelings of folks that thought they were getting a good deal (and missed out on the original cutoff) may not be the best deal, but it's sure as hell a lot more than I'd ever expect out of Paypal, and I'd be willing to bet that it's all coming out of the Newegg wallet.

Let's face it, there's a lot of other e-tailers out there that likely would've said screw the people that missed out, and left it at that.

The funniest whiners I've heard are the ones that talk about the thousand dollars they were planning on spending, and expected to get back a couple hundred or more. Um, did ya happen to catch the little caveat that stated a maximum of $50 back?? Yet, they go on and on, talking about how Newegg missed out on such a huge sale, ya-de-ya-de-yaaaaa.......

Yeah, whatever, big spender! [/sarcasm]

By hitman699 on 12/7/2007 7:15:41 PM , Rating: 2
Well, I didn't see the ads. or wether it was paypal or whoever that was actually putting up the money to offer it.. however..if the ads were stated it would last 3 days and didn't mention a funding cap.. well guess what.. whoever the money was coming from for the promotion is definatly liable in the form of a class action lawsuit for the FULL THREE DAYS.. this.. well.. we will add a couple more hours is nothing.. and Im suprised by all the fan boys here..regardless of past service.. I see a company that did not follow through on a promotion.. and whichever company that is.. is liable....and should pay out.. for the full three days.

By hitman699 on 12/7/2007 7:31:28 PM , Rating: 2
another option you would have is to manually discount ANY purchase made in those three days and submit it to your credit card company via contesting the charges (assuming you fund your paypal with a credit card) along with the original ad stating they overcharged you as 20% was never credited. its quite possible visa would chargeback at least that amount and hit them with a large chargeback fee.

paypal promotions
By bryanW1995 on 12/7/2007 3:22:06 PM , Rating: 3
Paypal hasn't offered ANYTHING that I've seen to make up for this fiasco, it's all been on the etailers. Newegg is obviously the most high-profile of them, so they get the lion's share of the bad press. The fact that they're taking care of any customers who could have conceivably thought that they were getting the 20% PAYPAL discount before newegg clearly posted on their site that they could no longer honor it shows that they still have a tremendous focus on customer service. How many of you work for a company would throw that much money at a situation to fix a problem that was created by somebody else?

By kmmatney on 12/7/2007 6:22:19 PM , Rating: 3
Wonder how may overpriced 8800GTs were bought during this time?

Restocking Fee...
By sixth on 12/7/2007 8:16:26 PM , Rating: 3
To the guy that posted above about restocking fees, I found out if you CALL newegg to do the return/refund/rma instead of doing it ONLINE and ask to waive the restocking fee they do it. Espically if you are swapping for the thing. I have done it a few times now with no issue.

Good job
By EvoKnvl on 12/7/2007 1:40:06 PM , Rating: 2
I have to say I'm impressed with newegg's customer service. I was a part of the Paypal/newegg promo. I got the email from newegg a couple days ago about their intentions and I actually received the refund yesterday. 20% was deposited back to my paypal account...

Kudos to newegg...

As for the rest of us
By eetnoyer on 12/7/2007 2:55:29 PM , Rating: 2
that didn't have time in the morning and were planning to do our shopping after getting home from to be us. Oh well, guess I'll just have to wait for a good deal on a 3850.

Doesnt surprise me either.
By serajadeyn on 12/13/2007 10:07:46 AM , Rating: 2
While I do acknowledge that Newegg is one of the top premiere online retailers of tech goodies, I've always been wary of them. In the past they've been proven to not always clearly mark their sale items, (such as refurbs or open box specials) and a restocking fee on UNOPENED items is just retarded imo. How much did they pay the guy to walk it back to the shelf? $0.25? Get real. I personally believe the only restocking charges should apply to OPEN items that were falsely RMA'd, eg; someone claims a DOA video card. Newegg takes it back, test benches it, finds out it's totally fine. Consumer takes the pinch and Newegg resells it as an openbox item at a discount.

This instance is an indication for my reasoning. It's good that they're trying to work with paypal to make good, but the drastic alteration of the sale period is BBB complaint-worthy. Just my .02

PS-Don't bother downrating me if you think I'm anti-newegg. I'm not, I still shop there regularly and I'm only saying to err on the side of caution when using them.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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