Print 79 comment(s) - last by Kenenniah.. on Dec 7 at 2:45 PM

Newegg newsletter showing the 20% cash back promotion ending on 11/28  (Source: vois2, EggXpert Forums)

The same banner a few hours later reflecting the ended promotion
Newegg's massive promotion leaves customers confused, angry

Newegg generally has a good reputation with the technology community. The company rose to prominence around the turn of the century for its lightning-quick FedEx Super Saver shipping and its excellent customer support.

Over the past few years, the company has done much to maintain its reputation with enthusiasts and still manages to hold on to a Reseller Rating of 9.90.

However, Newegg has found itself embroiled in a testy dispute over a promotion it offered on Cyber Monday. The promotion was held in conjunction than with everyone's favorite whipping boy: PayPal.

On Monday, Newegg offered a promotion where customers who purchased merchandise from the site using PayPal would receive 20 percent cash back. The promotion was to start on Monday, November 26 and end on November 28. Under the terms of the promotion, Newegg stated that "The cash back payment will be deposited into your PayPal account by January 31, 2008."

According to Newegg's terms and conditions for the promotion, the 20 percent cash back was limited to a maximum of $50 USD. No other limits were stipulated for the promotion.

A previous promotion that Newegg and PayPal sponsored together in April offered the following wording in the terms and conditions:

Discounted prices and/or promo codes are valid till 04/15/2007 or until 500 orders per corresponding product has been reached; whichever comes first. Once end date is reached or redemption limit has been met discounted prices and/or promo codes will no longer be valid. After this date and/or redemption limit, standard prices will resume and are subject to change without notice.

Monday's promotion contained no such wording.

Shortly after the promotion started, buyers started asking questions on Newegg's EggXpert forum to clarify if the 20 percent discount would apply to all purchases made on the site. One poster, andydepr, used Newegg's online chat to talk to a representative.

"The promotion would only apply to the specific items shown on [the] email," replied Steve, the Newegg online representative.

A Newegg staffer by the name of RoddyR asked posters on the EggXpert forums to bear with him as he received confirmation from higher ups. "I’m waiting for a confirmation email from another department. Looks like this promo might be for ALL ITEMS on I’ll have an update for you shortly," added RoddyR.

RoddyR returned within ten minutes to report, "Confirmed ... PayPal promo good for all items on Newegg."

So all is well, right? Wrong. About two and a half hours after RoddyR gave the go ahead for customers to go crazy with purchases using PayPal, he came back with the following nugget of information: "The promotional funds that PayPal allotted for Newegg has been depleted due to the large amount of traffic today. The promotion has now ended."

And thus the mass confusion began. Customers began inquiring if their order made the cut and if they would be receiving their 20 percent PayPal bonus.

"Please kindly note that we have been informed by PayPal at noon that the promotion has been ended since the money they used to run this promotion has been depleted," said Newegg online representative Venson to a customer. "In addition, we [don’t] know the exact order number is the ending of the promotion. For more information, please call PayPal at 1-402-935-2050."

At this point in time, the original banners advertising the 20 percent promotion were still proudly displayed on Newegg's site and within the email newsletter.

Another online specialist, Coco, added the following: "I do apologize that promotion has ended. It is no longer valid. PayPal provided us with a set dollar amount, and once that amount was reached, the promotion ended. Under the Terms and Conditions it also states Offer was available for a limited time only."

The website was altered to reflect that the promotion "Expires 11/26/2007" later in the afternoon and the banner in the original email newsletter sent to customers was also changed to reflect the termination of the program.

Newegg sent out the following email to customers who inquired about the ended promotion:

Dear valued customer,

Thank you for your inquiry about our PayPal promotion.

Unfortunately, the promotion has ended before noon on 11/26/2007. This promotion was sponsored by PayPal which a set amount of funds were provided for the promotion, and all orders must be placed while supplies lasts. Please know that the cash back is not provided through Newegg, nor does Newegg have any control over the promotion.

We are currently working with PayPal to see if a list could be provided for all of the orders that qualified and was placed in time for the promotion. If you are not sure if your order was qualified or not, please contact us within a few days for more information. We do apologize for any inconvenience this may have caused you.

Please feel free to contact us for any further questions or concerns.


xxxx xxx

Customer Service from Newegg 

So it appears that Newegg is working hard with PayPal to determine who actually made the cut-off point for the promotion before it abruptly ended.

The thread over at the EggXpert forum with confused, angry and information-seeking Newegg customers and conflicting information from Newegg employees can be found here. It is also in this thread where an EggXpert moderator, Jason, posted the following.

"As Roddy said, we will definitely keep you posted once the final results are in. Meanwhile, please don't forget to PM with your Newegg login (email) and I will be happy to send you a free gift. I apologize for not being able to respond to everyone's inquiries via PM, however, I will send you a free gift if I get your login"

So it appears that the least that Cyber Monday Newegg customers will get is a free gift from Newegg (in addition to the original orders). However, most are simply looking for their 20 percent cash back from PayPal.

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Sounds Shady
By pauldovi on 11/29/2007 1:29:21 PM , Rating: 5
If you made a purchase using Paypal while those banners were displaying the advertisement, you should be entitled to that discount. Or if your purchase was directed by those banners (a.k.a you saw the banners at 12PM, surfed the site until 12:30 and bought something, yet the promotion ended at 12:24PM) you should be entitled to the discount.

Shame on Newegg. Such a short promotion duration with massive advertising is a major screw up. They need to eat this one.

RE: Sounds Shady
By MrTeal on 11/29/2007 1:35:18 PM , Rating: 4
It is shady. I am most definitely not an expert on the law in case, but if a company announces a time or quantity limited sale, after which the price goes back up, they should be required to inform you that the sale is over.

RE: Sounds Shady
By idconstruct on 11/29/2007 5:35:01 PM , Rating: 1
It's not newegg's fault, Paypal has this promotion going on with many e-tailers (such as eastbay, for whom I work part time)... not only that but I beleive the discount does not apply to payments made with a debit card as the primary payment method....

Blame PayPal... not Newegg

(Although PayPal is otherwise very useful and I will continue to use it personally)

RE: Sounds Shady
By spluurfg on 11/29/2007 10:37:34 PM , Rating: 2
Blame paypal? Erm, blame whoever put up the advertisements, which were FALSE. That is not legal in this country. The terms said for a specific time period, and curtailing it just because more people are taking advantage of it than you wanted is dishonest. It's even worse than bait and switch, as people are still under the impression that they are entitled to the promotion when purchasing, even when having carefully read the terms.

RE: Sounds Shady
By idconstruct on 11/29/2007 10:52:54 PM , Rating: 3
It's not Newegg's fault PayPal discontinued the promotion... the funds for the promotion came from Paypal, not Newegg. The discontinuation was a direct result of Paypal, and there was nothing Newegg could have done (except possibly changing the ads a little quicker, but it seems Newegg was in the dark for a while as well)

RE: Sounds Shady
By Shoal07 on 11/30/2007 7:25:35 AM , Rating: 3
That is not legal in this country.

If you made a purchase using Paypal while those banners were displaying the advertisement, you should be entitled to that discount. Or if your purchase was directed by those banners (a.k.a you saw the banners at 12PM, surfed the site until 12:30 and bought something, yet the promotion ended at 12:24PM) you should be entitled to the discount.

The second quote is pretty close to the legal principle. Let's use this as our example and break it down.

Newegg/Paypal, starting on 6am 26 Nov (just guessing), advertises 20% rebate until 28 Nov.

Newegg/Paypal then discontinues said advertisement & offer at Noon, 26 Nov.

Is this legal? Yes, as long as Newegg/Paypal distrubutes the change in the same manner they advertised (i.e. via the website advertisement) they can discontinue the ad. However, it sounds like they were a bit slow getting the word out.

So, who is entitiled to reperations, if anyone? Any person who:

-"made a reasonable effort" to purchase an item due to this promotion
-believing they'd receive the 20%
-prior to the notification by newegg the offer has ended in the same manner it was advertised

is legally entitiled to that cash rebate and could sue Newegg/Paypal on the grounds that Newegg/Paypal are in breach of contract. If the cap really was $50, it's not likely worth the suit, unless it is big enough to be a class action.

RE: Sounds Shady
By TSS on 12/1/2007 8:18:50 PM , Rating: 2
i'm more leaning towards it's nobody's fault. they had a budget for an promotion and thought that the budgets matched about the amount of trafic they where getting.

though i figure where it went wrong, was the point where the consumers learned it wasn't a limited promotional offer but 20% off EVERYTHING. that's a big lure. afterall, with 20% off i'd buy something like a 5000$ TV, get it for 4000$, they have to cough up 1000 bucks. for everybody that does that.

with everybody buying everything they had planned on at once, it just became too expensive too quickly. but they hardly can put up a banner that says "ebay gave us $100,000 for a promotion, while it lasts, 20% off everything". because that causes even more confusion about when it's over.

most of it's based on speculating human behaviour. they just speculated wrong here.

RE: Sounds Shady
By afkrotch on 12/3/2007 4:05:49 PM , Rating: 2
Except for the fact that the maximum cash back was $50. So really, you'd only a $5000 TV for $4950. I'd much rather have free shipping.

RE: Sounds Shady
By FITCamaro on 11/29/2007 1:44:17 PM , Rating: 5
Sounds like typical PayPal to me. I don't use their crappy service. I've met people who've had their accounts frozen by Paypal due to a dispute. Its in their ToS that they can. So don't ever attach your primary bank account to Paypal.

And I don't blame Newegg for this problem. Still the best site to get computer parts 99% of the time. Every now and then you'll find a better deal but not often. About the only thing I don't like with Newegg is that they use UPS shipping now. Was so much better when their cheapest option was FedEx. Could actually get your parts on a Saturday with them.

RE: Sounds Shady
By RaisedinUS on 12/6/2007 6:04:43 PM , Rating: 2
"Sounds like typical PayPal to me. I don't use their crappy service. I've met people who've had their accounts frozen by Paypal due to a dispute. Its in their ToS that they can. So don't ever attach your primary bank account to Paypal."
And it can get worse. Paypal isn't all that great unless you use it for ebay. Even then, it's not that great for the buyer, but they sure stand behind the seller right or wrong.

RE: Sounds Shady
By Screwballl on 11/29/2007 1:47:02 PM , Rating: 5
No, this is shame on PayPal for not disclosing these terms earlier and requiring Newegg to post these terms clearly.

This is yet another reason how PayPal is screwing people daily and why I refuse to use them anymore. Unfortunately in this case Newegg is catching all the flak when it was PayPal's doing in the first place.

Knowing Newegg, I am curious if they can track the order numbers correlating to the time the order was placed and if it was by 12:30 or 12:45 then they may refund the 20% themselves. This is what makes Newegg stand out, they are willing to work with the customer many times when they are not even to blame.

This story is nowhere near closing so we will see how it turns out. I hope Newegg puts pressure on PayPal to force the refunds on orders placed before 1PM.

RE: Sounds Shady
By geeg on 11/29/2007 1:51:48 PM , Rating: 5
Shame on PAYPAL not newegg. Newegg chooses to lose money rather than losing customers. If you trust my 5+ years big experience, paypal does the opposite.

RE: Sounds Shady
By clovell on 11/29/2007 2:22:26 PM , Rating: 4
Nah, it's Newegg's site and Newegg's customers - the buck stops there. If they want to go after PayPal later, more power to 'em, but for now, Newegg needs to make it right.

RE: Sounds Shady
By Lord 666 on 11/29/2007 2:50:43 PM , Rating: 2
It wasn't just Newegg that had these ads going. Wolfcamera, Ritzcamera, and Buydig had them for 11/26.

Sure Newegg is much more popular than those camera sites, but it is Paypal's fault. Their marketing team allocated a certain dollar value based on previous sales figures and they estimated incorrectly. No where did the banners say 12pm as the cutoff.

Newegg has ALWAYS done the right thing and bent over backwards for keeping up their excellent reputation. Newegg should go after Paypal.

RE: Sounds Shady
By marvdmartian on 11/29/2007 4:26:43 PM , Rating: 5
I've used Paypal for 8+ years, and Newegg for 7+ years. While Newegg has almost always bent over backwards in dealing with their customers, I think they screwed the pooch with this one.
First off, they should've had some sort of idea of how much money that PP was going to dedicate toward this thing, as well as how big of a deal it was going to be to their customers. If PayPal wasn't willing to put forth a sufficient amount of cash toward's Newegg's part of the sale, then Newegg should've just said NO. How much you wanna bet that some of those other online retailers will run the complete length of this promo, and not get 1/10th the sales that Newegg got in just a few hours?? Newegg was easily the most likely to contribute to this promotion, and should've been given the greatest proportion of the funding toward it, no questions asked.
Instead, they're left with unhappy, dissatisfied customers. Not just the ones wondering whether their purchases made the cutoff or not, but those that just didn't have the time or ability to hit the sale first thing that morning. Trust me, Paypal doesn't care a whit if Newegg's customers are pissed off or not, as they already got a big chunk of cash that they can now invest heavily for the next two months, courtesy of Newegg.

I'm a supporter of Newegg, for the most part, but think they need to do one of two things here:
1. Encourage everyone who placed an order on Monday to cancel it NOW, receive a refund via Paypal, incur no fees for the cancellation (or return of the item if the purchase has already shipped), and then offer all their customers an across the board 10% discount, by invitation only, for a limited amount of time, no Paypal payment required. That will screw Paypal out of their money, and bring good faith back to Newegg.
2. Offer anyone on their e-mail distribution list a one time use 20% coupon, with the following exceptions. If you already snuck in under the cutoff for the Paypal deal, you don't get it, it's only good for ONE item, and that item should fall under a specific dollar figure (let's face it, we don't want to bankrupt Newegg by having a bunch of clowns order $2000 HDTV's, and expect 20% off of them!).

The saddest part of all this hullabaloo is that I learned of the 20% deal online, at Ben's Bargains. The e-mail that was sent out (by Paypal, I believe) didn't hit my inbox until that evening (good timing, eh?). I also have an issue with Newegg jacking up their price on items while they're out of stock, but that's not part of this, so it's all I'll say about it now.

RE: Sounds Shady
By Spivonious on 11/29/2007 1:51:59 PM , Rating: 2
Did anyone read the terms and conditions? I'm curious if it mentioned anything about a limit.

RE: Sounds Shady
By Chubbbs on 11/29/2007 2:15:50 PM , Rating: 5
Consider this situation from the perspective of the horror that is mail-in rebates. All of these promotions should be made illegal. Businesses obviously cannot be trusted to refund money that they've already collected, and consumers often don't have the resources to seek remedy through the legal system.

Something is wrong when retailers and vendors are offering big rebate promotions, sometimes for the vast majority of the purchase price. These programs work by screwing a certain percentage of buyers, and it isn't right.

RE: Sounds Shady
By JonnyDough on 11/29/2007 3:38:57 PM , Rating: 3
Please rate this guy up. I f'n hate rebates. Anyone else?

RE: Sounds Shady
By imaheadcase on 11/29/2007 6:16:11 PM , Rating: 3
True that, rebates are a scam from the get go, they should be banned. They are put in place SPECIFICALLY to screw the customer, because they know maybe less than %1 will actually mail it in, or mail it in time, if you get it at all.

I have got ONE rebate returned since early 1990's. I sent in maybe 200 or more. I only remember that rebate because it came in after a year or more after I mailed it in. 6-8weeks my ass.

RE: Sounds Shady
By darkpaw on 11/29/2007 8:56:32 PM , Rating: 3
Talk about exageration.

I really don't like rebates, but as long as you follow the directions and make copies of everything, they can't turn you down legally. In the past ten years I've only had one refused and when I called the vendor up and presented my photocopies it was fixed immediately.

Doing the extra work and waiting for the check is more annoying then a flat discount, but if you do the effort they work just fine. Due to all the people that don't bother, they are almost always more valuable then the discount would have been.

RE: Sounds Shady
By mindless1 on 11/29/2007 8:57:54 PM , Rating: 2
There is no reason to ban them, you are quite free to not mail it in if you so choose, or to even buy a product without any rebate offered.

When you wrote you had one returned, surely you don't mean that out of 200 sent in, only one of them paid out? That can't be possible unless you can't follow directions. Nobody is ever THAT unlucky.

RE: Sounds Shady
By BladeVenom on 11/29/2007 9:04:26 PM , Rating: 2
The first Rule of Acquisition: Once you have their money, you never give it back.

RE: Sounds Shady
By cochy on 11/29/2007 6:16:04 PM , Rating: 3
Here here. I never factor mail-in "rebates" into a price. It's instant savings or no savings.

RE: Sounds Shady
By Polynikes on 11/29/2007 5:52:37 PM , Rating: 2
Talk about a SNAFU.

Finding Fault
By mindless1 on 11/29/2007 2:34:20 PM , Rating: 2
It seems we need to look closer at where this problem began. Did Paypal tell Newegg the promo was over when funds were exhausted, or did Paypal tell Newegg that all purchases were covered from 11-26 thru 11-28?

I suspect the former, not the latter, making it Newegg's fault for advertising the promo ran thru 11-28.


Once they did that, it shouldn't be a matter of informing people in a forum or changing the banner in a newsletter. Once the terms of the deal (actually it's expiration) were changing, there needed to be a bold, order-stopping page the customer had to read and acknowledge stating that the 20% discount was not going to apply. Unfortunately for Newegg, such things take time and can't be put into place at the drop of a hat.

I just can't imagine what was going through the mind of the person who set the terms that the discount would run till 11-28. Where they only looking at daily average sales to guesstimate how long the funds would last without any consideration of how much a site-wide 20% discount would increase sales? I for one was going to max out the $50 allowance with a big-item purchase, but I'm not the kind of shopper who buys big ticket items without some research first and if I'd done that research already, I'd have made the purchase already.

It almost saddens me that I find fault with Newegg instead of Paypal because in general I find Newegg > Paypal. It's not that Paypal isn't entirely blameless though, how did they expect Newegg to offer this kind of promo considering their giant customer base but only a disproportionately small funding for the promo? I suppose Newegg should have advertised something like "The race is on, if you order quickly enough you can get 20% off while funds last".

RE: Finding Fault
By Oregonian2 on 11/29/2007 2:53:24 PM , Rating: 3
... or it could just be that your assumption is wrong (Roseannadanna).

RE: Finding Fault
By mindless1 on 11/29/2007 3:26:32 PM , Rating: 2
Wow, thanks for that informative post.

Are you suggesting Paypal did not disclose to Newegg that the funding wasn't unlimited? I find that very hard to believe, but if you have direct evidence instead of hearsay in a forum, by all means...

I feel you are deliberately trying to confuse what seems a very clear-cut issue.

RE: Finding Fault
By Oregonian2 on 11/29/2007 5:02:11 PM , Rating: 2
but if you have direct evidence instead of hearsay in a forum

Didn't exactly see any direct evidences in your long tirade either. Which was my point. You may be perfectly correct, but you seemed a bit strong to me based purely (AFAI can see) upon assumptions in a situation that seems empty of hard facts between the relationship of the participants in the promotion which itself probably is a response to Google's 10% very long running promotion for first-time users of their paypal alternative. Google's promotion, because of its very long running time, would appear to have a very high limit, even though it of course has to have a dollar limit (even if unstated). If there were 100 trillion dollars of promotion cost run up on it, they'd not pay it all, obviously. That also fuels the reasonableness of PayPal's promotion possibly being intended to be "unlimited" in dollars when restricted to one seller (unlike Google's promotion that has a lot of dealers participating). They may have expected a more limited response to the offer.

Are you suggesting Paypal did not disclose to Newegg that the funding wasn't unlimited?

No, the promotion was clearly not unlimited. The newEgg ads (which I get daily, I've been on their newsletter list for a long time) clearly said that it only runs for a limited period and only on Newegg. I would have used it, but there isn't anything I needed at the time other than a DVI-DVI cable which I could get locally "retail" for less than half of what it'd cost me at NewEgg.

RE: Finding Fault
By mindless1 on 11/29/2007 9:01:50 PM , Rating: 2
I wrote funding wasn't unlimited, not period.

BIG difference. Newegg gave a period implying the deal ws good from the 26th to the 28th. Clearly this was their error as there was no possible way to make good on that claim when it is the amount of money, not the number of hours, that limit the deal.

RE: Finding Fault
By Oregonian2 on 11/29/2007 9:11:28 PM , Rating: 2
Note that it wasn't NewEgg funding the program so the limitation was one of Paypal, not NewEgg. NewEgg may not have known that Paypal was going to shut things off before the end date. Paypal may not have known that it was going to be ending early either (when they started).

RE: Finding Fault
By mindless1 on 11/29/2007 9:16:27 PM , Rating: 2
What is it that you find so hard to grasp? If they don't know when it's going to end that is exactly why it was wrong to advertise based on dates!

RE: Finding Fault
By elpresidente2075 on 11/30/2007 4:25:21 AM , Rating: 2
Living up to your namesake, I see...

RE: Finding Fault
By Oregonian2 on 11/30/2007 6:42:09 PM , Rating: 2
Hmmm... they have to give a starting date else it's completely dumb. So you're saying they should make it open indefinitely with no cutoff date. Hmm....

RE: Finding Fault
By cochy on 11/29/2007 6:22:15 PM , Rating: 2
Funny that you're the one asking for proof when your entire posts are basically your own suspicions.

I suspect the former, not the latter

So honestly what's wrong with you? lol

RE: Finding Fault
By mindless1 on 11/29/2007 9:14:22 PM , Rating: 2
You're kidding, right?

Suspicion was a term used out of kindness, it would be ridiculous to think Newegg didn't know the terms of the agreement they had with Paypal, that they were informed but apparently somewhere in their internal communication chain the important details didn't get passed along.

Somebody at Newegg goofed bigtime by deciding to advertise an offer based on dates (26th to 28th) when clearly dates had nothing to do with it, the deal could have gone for one hour or 10 months all depending on when the funds ran out.

RE: Finding Fault
By Kenenniah on 11/30/2007 9:13:37 AM , Rating: 2
Umm don't you think the deal could have included both? It would end either when the funds ran out, or on the 28th. Not exactly hard to understand there.

RE: Finding Fault
By mindless1 on 11/30/2007 12:59:14 PM , Rating: 2
The point is still that regardless of what the deal "could've" been, that's not what was advertised. This much is quite clear as evidenced by all the people who placed orders then wondered if they'd get the 20% discount, and those who were planning on placing orders based on the advertised date but didn't get home from work/etc in time to do so.

RE: Finding Fault
By Kenenniah on 12/7/2007 2:45:01 PM , Rating: 2
"This much is quite clear...."
Not to me it isn't. You could be right, but since I didn't actually see the promotion I can't say for sure. But let's face it, the average American consumer really isn't that intelligent. How many of them do you think actually read and understood the terms and conditions? Again since I didn't see the actual promotion I can't say if it mentioned a limit to amount or number of orders or even a simpe "While supplises last". To assume however that it didn't because so many consumers didn't know is giving the average idiot consumer way too much credit.

Ironic Ad while reading article
By MatthiasF on 11/29/2007 1:36:45 PM , Rating: 2
Thought I'd post this, since it gave me a chuckle.

While reading the article about Paypal's 20% with Newegg going wrong, I see an advertisment on the page for Paypal giving the same incentive for HP's store. Here's a link to a print screen.

The link from the advertisement went to this site:

Where is Paypal getting all this money?

RE: Ironic Ad while reading article
By Mitch101 on 11/29/2007 1:45:47 PM , Rating: 2
I dont know but I hope that Dell purchase I made wont go the same route.

I would suspect Feb 1st there will be a class action lawsuit for those who didnt get thier 20%.

RE: Ironic Ad while reading article
By DarkPrime on 11/29/2007 2:29:01 PM , Rating: 2
I too ordered from Dell in the afternoon on monday (a camera). The thing is, my paypal account shows a pending payment on monday, but the full payment didn't transfer until Dell fully charged me on wednesday (basically dell didn't get the money until the camera shipped). No where on Dell's site did I see anything about a limit.

RE: Ironic Ad while reading article
By Mitch101 on 11/29/2007 2:55:56 PM , Rating: 2
Mine wont ship for 2 weeks from monday. Hope that doesnt effect the refund.

RE: Ironic Ad while reading article
By baadcatj on 11/30/2007 2:38:34 AM , Rating: 2
So THAT'S what happened! I couldn't figure out why the order I was trying to place with Dell repeatedly took me to a page that said that there was an error with the PayPal promo. No matter how many times I re-read the 'fine print', there wasn't any mention that there was a limit on the number of orders/customers that this promo was available for (which is standard Dell procedure). It only mentioned the dates.

The same thing happened on another website (I forget which one). Then checking out other websites just to see what was up, similar problems we also experienced.

While it's only my supposition, I expect this is an error on PayPal's part and that they didn't make it a part of their terms and conditions to the online vendors.

Don't get me wrong, Dell, PayPal and NewEgg are not infallible, but they are companies I typically prefer to work with, so I'm not bashing any of them; just stating my opinion that because I experienced the same thing on several websites, I'm leaning toward thinking that this is PayPal's doing.

Now, as a matter of what to do about it... that is the question!

Yes, NewEgg should do more than send out some hats and stickers in order to maintain their 'Eggxcellent' reputation - maybe do a promo of their own to their email list - as mentioned elsewhere here - for a percentage off, up to a maximum amount, for a specified time period, yada yada.

Other PayPal promo 'partners' should do the same in trying to treat their customers extra well after a snafu like this. PayPal on the other hand should also do something to take care of the businesses they messed up, proportional to the manner and level in which they are responsible.

Sorry so long - hope it helps. Just my $.02.

RE: Ironic Ad while reading article
By Spivonious on 11/29/2007 1:47:59 PM , Rating: 2
Where are they getting the money?? From the insane fees they charge eBay sellers. I sold a $2000 item once and got hit with over $200 in fees between eBay and Paypal (which is also eBay).

By Oregonian2 on 11/29/2007 2:51:54 PM , Rating: 2
Sounds like you should have sold the item some other cheaper way if they took more than ten percent from you. Were you unable to calculate their fees ahead of time?

Don't know about the eBay side, but I've used Paypal as a seller on a (non-profit) website that I once was maintaining. Most they ever took was about 3.5% which is more than other credit-card service companies charge (more like 2~2.5% I think), but they don't have a minimum, we could have one sale per year of twenty dollars, and they still only took their few percent (plus it's incredibly easy to set up and they take care of international monetary conversions from just about everywhere).

free gift
By Murst on 11/29/2007 1:30:03 PM , Rating: 2
Hmm.. a few years ago, Newegg sent me a "free gift" when they messed up my order.

It was something like a newegg hat, newegg pen, newegg stickers to put on my computer, and some post-it notes (newegg branded too I think).

Hopefully the people who were expecting a 20% cash back don't get stuck with a gift like that, cause that in no way makes up for the cash.

Also, I'd be surprised if everyone who bought something priori to the announcement that the promotion is over doesn't end up getting their 20% back. There's gotta be something wrong when a company tells you you'll get a certain discount at check-out time yet after the order completes, they backtrack on that. It would seem they have to respect the terms that were accepted at the transaction time.

RE: free gift
By Spivonious on 11/29/2007 1:50:14 PM , Rating: 4
Yeah I got a gift once for leaving a good, detailed review for them on resellerratings. It was a hat, t-shirt, bumper sticker, and a license plate frame "I'd rather be pimpin' my PC" (lol).

I still have the hat, but the shirt was a small and I wear a medium. As far as the sticker and frame...I'm proud to be a geek, but not that proud :)

RE: free gift
By Jedi2155 on 11/29/2007 6:19:26 PM , Rating: 2
I got something similar for leaving a testimonial on their site after last years' Black Friday :).

I'm using that license plate frame on my crappy '88 Toyota Camry which has worn off paint, dents, and broken pieces here and there!

While I have a Lian Li case, Q6600, 4 GB of Crucial Ballistix Tracer PC-8500, WD Raptor, 8800 GTS 640, :).

I'm definitely living up to the plate :)

RE: free gift
By FITCamaro on 11/29/2007 2:06:06 PM , Rating: 2
One time I ordered a fan controller for my computer. It was a piece of crap and didn't work. It wasn't worth the money to ship it back for a refund. I just put a review up on Newegg saying it was a piece of crap. A few days later Newegg refunded my money without me even asking them to. Now thats service.

RE: free gift
By imaheadcase on 11/29/2007 6:19:39 PM , Rating: 2
Someone said they also gives subscriptions to Computer oriented magazines out sometimes to.

Dropped the Ball
By clovell on 11/29/2007 1:32:23 PM , Rating: 3
I can't say I'm surprised, as I've had trouble in the past ordering from Newegg, but this is a pretty big screwup. These guys should have known that the funds would have dried up quick. They need to take the hit themselves, do right by their customers, and learn a lesson.

RE: Dropped the Ball
By SanLC504 on 11/29/2007 2:59:54 PM , Rating: 3
How can you say "they should have known that the funds would have dried up quick?" eBay bought PayPal for $1.5 BILLION five years ago. The PayPal service charges just for auctions are enough to run five companies. Anyone who receives money via PayPal (except non-profit 501(c)3 entities I believe) gets charged a service fee.

I may be a bit biased, mainly because I have been satisfied with Newegg for the last three years, but I do know that people can only relay the information they are given. Making assumptions will just lead to more angry people.

Newegg didn't even have to send out care packages to people affected. They could be like PayPal instead, just shrug and say "Oh well."

What do you think Best Buy would do if you were denied a manufacturer's rebate for no reason? Probably sit there and tell you there's nothing they can do. Kudos to Newegg for trying to make amends.

RE: Dropped the Ball
By clovell on 12/1/2007 7:24:41 PM , Rating: 3
No, sorry. Making amends would be living up to your advertising. Newegg can control it's own advertisements. If Paypal lied to Newegg, it's up to Newegg, not the customer to deal with Paypal.

Regardless of what you think is right, that's how it will play out. People will see it this way.

Customers suck
By jmunjr on 11/29/2007 3:11:26 PM , Rating: 2
Newegg provides AWESOME service and a great selection for years, and then one hiccup and everyone cries foul. you guys suck.

RE: Customers suck
By DigitalFreak on 11/29/2007 3:24:41 PM , Rating: 2
I bet you swallow...

RE: Customers suck
By mindless1 on 11/29/2007 3:48:42 PM , Rating: 1
Yes, they do provide good service and selection. For a profit. Similarly, you might be a good customer as-in, paying and not trying to pull scams on them, etc.

Let's say both parties in this business transaction are great, would newegg find it acceptible if you sent them only 80% of their bill and not insist on the remaining 20%?

I'm not suggesting we all boycott Newegg, but even if Paypal has given a lot of people the shaft in the past that speaks more about the gamble some took by using Paypal than it does about the particulars of this whole situation.

Want to help Newegg? Buy some (more) stuff from them, increase their profits so if they go the extra mile to smooth over the situation, it will hit their bottom line a little softer.

RE: Customers suck
By xxsk8er101xx on 11/29/2007 9:05:42 PM , Rating: 2
you don't make any sense. Every business works for profit. no profit no business - that is capitalism. We don't work for the good of the country - that is communism.

RE: Customers suck
By mindless1 on 11/29/2007 9:19:58 PM , Rating: 2
Maybe you should reread what I replied to then reread what I wrote again and again till it makes sense to you.

Fed EX????
By hitekcorolla on 11/29/2007 5:41:29 PM , Rating: 2
Newegg ships UPS, not Fed Ex.

RE: Fed EX????
By hitekcorolla on 11/29/2007 5:44:48 PM , Rating: 2
I meant ships primarily UPS.

RE: Fed EX????
By tjr508 on 11/29/2007 7:42:04 PM , Rating: 3
You haven't been going there very long...
The story is accurate.

RE: Fed EX????
By mindless1 on 11/29/2007 9:22:57 PM , Rating: 2
Newegg used to primarily use FedEx, now they primarily use UPS. You still have the choice of which to use on many items.

LOL @ People who can't read.
By x0darksage0x on 11/29/2007 4:09:41 PM , Rating: 2
Offers valid only while supplies last.

And... for those who blame NewEgg..

What did you use to checkout? Not Paypal? Guess the offer didn't apply to you.

RE: LOL @ People who can't read.
By mamisano on 11/29/2007 5:48:11 PM , Rating: 2
No, that was added AFTER the blunder was discovered.

Original terms and conditions:
To receive 20% cash back on your purchase amount (including shipping and taxes), use your PayPal account to make purchases on participating merchant websites by selecting PayPal as a payment option beginning November 26, 2007. Offer is available for a limited time only, as long as the merchant’s website indicates that the 20% cash back promotion is offered, but no later than December 10, 2007. Multiple purchases are allowed. Maximum total amount of cash back per PayPal account is $50 USD. Certain exclusions apply. Only United States PayPal accounts in good standing are eligible. The cash back payment will be deposited into your PayPal account by January 31, 2008. See terms and conditions for complete details of offer.

Added on 11/26/2007:
Cash back offer valid until 11/26/2007 and while supplies last. Use of any promo code is limited to one (1) offer per order and product. Promo codes may not be applied to multiple products within the same order or to more than one (1) item of the same product.

RE: LOL @ People who can't read.
By jevans64 on 12/2/2007 1:03:09 AM , Rating: 2
Yes. I saw this original text but decided it wasn't worth the $50 to use PayPal instead of my Newegg Preferred account or my own debit card.

As for who is at fault, I believe that both are at fault -- Newegg for dealing with PayPal to begin with and PayPal for using this type of promotion to increase business while ( probably ) not putting up enough front-money to cover the original promotion period.

Here's the latest
By Brandon Hill on 11/29/2007 8:29:05 PM , Rating: 2
Here's the latest from Newegg. The story will be updated when official word comes down:

From RoddyR
Hi all,

I know my posts keep getting buried, but for now these are indeed the facts. If your order was made prior to the cut-off time which was 2:30pm PST, you need not worry. You will receive the %20 cash back in your Paypal account sometime before January 31, 2008.

For those of you that fall outside this time period, THIS IS NOT THE FINAL ANSWER. We are still reviewing the various circumstances regarding this issue.

So again, if your order was placed (not charged) before the 2:30pm PST cut-off, then you are ok. No need to worry. For everyone else, PLEASE... with cherries on top.. give us a little more time to see what can be done.


RE: Here's the latest
By HaZaRd2K6 on 11/29/2007 9:32:01 PM , Rating: 2
Damn, if I'd known it was a 2:30PM PST cutoff time I still woulda placed an order :( I really need a new mobo and RAM...

RE: Here's the latest
By Jedi2155 on 11/30/2007 6:58:30 AM , Rating: 2
whoohoo! I made it with my order at 1:46 PM!

By Chadder007 on 11/29/2007 3:56:59 PM , Rating: 1
Expect a lawsuit to come out of this one...

RE: Lawsuit
By xxsk8er101xx on 11/29/2007 8:50:43 PM , Rating: 2
really .. a lawsuit ... for what?

This is a little psychotic to blame newegg for a paypal promotion. As per usual everyone over reacts and goes crazy.

This is the American way - over react, over hype, and sue.

RE: Lawsuit
By tmouse on 11/30/2007 8:06:07 AM , Rating: 2
There is an old saying "if you go to bed with dogs you will wake up with fleas". Newegg does have the responsibility. It’s their name, they entered into the promotion. If there was a specific amount of money they should have mentioned this as an additional limit. These open-ended types of sales should be banned; they are at best false advertising. I believe Newegg is doing everything possible to satisfy their customers, hopefully they will think twice about any future Paypal promotions. I would NEVER deal with Paypal their history of shafting their customers in legendary.

Newegg Should Sue The BASTARDS!!
By TheBeagle on 11/29/2007 3:16:43 PM , Rating: 2
Newegg has a duty to honor its advertising, but also has a right to go after PayPal if that's where the mess up occurred. However, if Newegg is solely at fault, then they need to bite the bullet and protect their heretofore sterling reputation - But they can't have it both ways!

In the long run, Newegg will be much better off if they honor their word and do the right thing. Protecting their previously hard-earned reputation for honest dealing is worth whatever they have to pay to preserve it!

By INeedCache on 11/29/2007 7:56:06 PM , Rating: 2
I totally agree. Newegg is legally responsible for what is on their website. If PayPal mislead Newegg, that is between Newegg and PayPal, and the customers should not have to suffer the consequences. For those of you who think Newegg is blameless in this, I think you're wrong and letting your liking for Newegg, and perhaps your dislike for PayPal, cloud your judgment.

There was no promotion!!!!
By zornundo on 11/29/2007 3:21:50 PM , Rating: 1
This is pure bait and switch and I hope they get sued like mad.

I'm guessing that nobody will get any money from this "promotion."

RE: There was no promotion!!!!
By xxsk8er101xx on 11/29/2007 8:54:47 PM , Rating: 2
oh my god - this is not bait and switch .. do you even know what it means?

this is a paypal promotion involving 20% cash back if you use paypal. It's paypal paying you the 20%. Has absolutely nothing to do with any product promotion from newegg.

good god stay in school my boy!

scrambled eggs
By goku on 11/29/2007 2:57:09 PM , Rating: 2
Mmm does that look good, now I want some scrambled eggs...

By animedude on 11/29/2007 6:57:48 PM , Rating: 2
I am pretty sure Google would eat the loss. There is no incentive for PayPal to piss off Newegg because Newegg is by far their largest customer.

The fine print
By drivendriver on 11/29/2007 10:13:44 PM , Rating: 2
This is the fine print from the e-mail sent out by Paypal:

"Cash back offer is for up to $50 per PayPal account and good for a limited time only. Offer is only available as long as the merchant's website indicates that the 20% cash back promotion is offered, but no later than December 10, 2007 11:59:59 PM PT. Restrictions apply. See promotional site for details."

So anyone who placed an order while the deal was advertised should get the rebate. Customers shouldn't have to pay for a coordination issue between Paypal and Newegg.

I wouldn't blame Newegg, though. The promotion was organized, advertised, and funded by Paypal, and Newegg was only one of several e-tailers involved.

By Kyanzes on 12/1/2007 12:22:26 PM , Rating: 2
Obviously it would be best to indicate the eligibility on the virtual pre-invoice before checkout so there would be no confusion. If the "20% money back PayPal Bonus" item is there then there's no debate.

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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