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Growing pains are a mixed blessing for one of the largest e-tailers

Newegg is one of the top shopping destinations for computer enthusiasts. In October of 2008, they launched a major expansion into Canada. However, the high cost of shipping and some lag in updating prices and new products has been of concern to customers.

DailyTech did a little research and asked a few questions through C2E Consulting, Newegg's Canadian public relations agency. The following is what Newegg was willing to disclose:

Are all products shipping from the Edison, New Jersey warehouse?
If not, what percentage?

Canadian orders are being fulfilled from all Newegg order processing centers. Where an item gets shipped from depends on availability and proximity. In general Edison takes care of most of Eastern Canada, while we have found our California centers to be most efficient in servicing the West side of the country.

Is Newegg going to start using Canada Post and/or Purolator instead of UPS?

We are currently going through the processes of evaluating and adding additional shipping options for our Canadian customers and certainly Canada Post and Purolator are among those we are considering. We have heard our customers' feedback and fully understand that in order to be competitive in retaining and winning new customers, we need to offer choices when it comes to carrier but also inexpedited and lower cost shipping.

Is the plan to expand the Canadian product line to match the U.S. product line? Is there a commitment to have new products available as quickly as the U.S. site?

Newegg prides itself on our ability to leverage partnerships with top manufacturers to offer our customers an outstanding and diverse product selection. As it stands, our Canadian customers today have access to almost our complete IT offering. Our computer and gaming categories established and built our business in the U.S. and in this sense we believe we have put our best foot forward by focusing on these products during our launch.

We are absolutely committed to expanding our offerings further and bringing our consumer electronics product lines to the Canadian market as well and are working hard on fostering and establishing the partnerships that will enable us to do so in a timely manner.

It is our goal to provide our Canadian customers an identical line-up to the U.S. with the added advantage of some specific Canadian only SKUs.

What is Newegg doing to lower prices in order to match what is available locally?

Our product management team ensures our prices are competitive to the local market especially when it comes to products and categories key to our Canadian customers. We monitor our Canadian pricing model very carefully to stay true to our commitment to value: offering quality product at great prices.

Any word on a local warehouse in Canada?

Our current order processing centers in New Jersey and California have been doing an outstanding job at shipping product to our Canadian customers getting 99% of approved orders out the door in one business day. Our robust shipping partnerships have also allowed us to come through with timely delivery to both urban and more remote areas of Canada. That being said, we cannot deny the fact that adding a local warehouse would make it easier to expand product offerings and expedite product delivery.  We are seriously evaluating our options in terms of opening a local facility. It is a natural next step for our Canadian business.

Can you discuss any further expansion plans?

Our expansion into Canada has been a great experience for Newegg and we believe we can help transform the Canadian online market for IT and consumer electronics products. We were met with much enthusiasm and feel we have been successful in providing a much needed alternative value model to the existing technology e-commerce market in Canada. The outstanding performance of our Canadian expansion has confirmed that our business model of exceptional product selection at great prices, combined with stellar customer service and fast shipping is a formula for success that transcends cultural and geographic lines. Right now, we are heavily focused on our Canada, U.S. and China businesses but certainly are reviewing our opportunities for expanding internationally.

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By DASQ on 4/8/2009 11:13:03 AM , Rating: 3
I've yet to buy anything from

Their pricing is just not competitive. Now that I know the shipping comes directly from the states for every order, I'll avoid it further.

What I don't understand is that if .ca ships from .com warehouses, how come .ca doesn't carry everything .com does? Does that sound right to you?

RE: yep...
By TomZ on 4/8/2009 11:36:04 AM , Rating: 4
You should cross your fingers and hope for a Newegg distribution center in Canada. Here in the US, Newegg's pricing, selection, and service are second to none. I've stopped even shopping anywhere else for computer parts since Newegg always had the best price when I comparison shopped anyway.

I also had a kind of nasty MB/CPU/RAM problem late last year, and Newegg handled that perfectly for me. So I'm pretty confident in their customer service as well.

RE: yep...
By wempa on 4/8/2009 12:41:27 PM , Rating: 3
Agreed. I get almost all of my hardware through Newegg. I recently had to replace a lot of my PC hardware. I figured that I'd check out the Microcenter B&M store near me. It would have cost me about $150 more + tax to get what I needed. And, as you mentioned, returning products is NEVER an issue with Newegg. I guess the shipping cost is keeping them from being competitive in Canada. That sucks.

RE: yep...
By Ratinator on 4/8/2009 1:19:30 PM , Rating: 2
For now I will stick with NCIX in Canada.

RE: yep...
By VaultDweller on 4/8/2009 11:41:35 AM , Rating: 4
Their pricing is just not competitive. Now that I know the shipping comes directly from the states for every order, I'll avoid it further.

I find their pricing competitive - at the very least, they absolutely demolish NCIX, which is probably their largest competitor in Canada. However, NCIX has a great price-match policy, so that does tend to negate any other company's price advantage. NCIX's price-matching, combined with to find the best prices in Canada, is a winning combination.

As for shipping: NewEgg actually gets product to me faster than other e-tailer in Canada. If I place an order at NewEgg on Monday using the cheapest shipping option, I get the goods on Wednesday (sometimes) or Thursday (at the latest). From NCIX or other companies shipping from BC, it would get to me on the next Monday at the absolute earliest.

Depends on where you live, I guess. It takes 2-3 days to get from the NJ facility to NB, and it goes through Quebec - so people in Quebec would probably get it even faster.

What I don't understand is that if .ca ships from .com warehouses, how come .ca doesn't carry everything .com does? Does that sound right to you?

This is what vexes me.'s selection is very lacking compared to .com. No Enermax power supplies? An almost non-existent selection of LCD monitors? WTF? I've repeatedly sent product requests, noting that the products I want are in stock, but nothing ever comes of it.

RE: yep...
By ZipSpeed on 4/8/2009 1:47:56 PM , Rating: 2
To further add, those living in Calgary, Edmonton and Winnipeg, Memory Express now has a price match policy. Granted, their selection is nowhere near as large as the Egg or NCIX, but if Memory Express carries the same product, they will match. Alreayd PM'd a few things with NCIX and Newegg saving myself the hassle of shipping costs and of course, the waiting.

RE: yep...
By SavagePotato on 4/8/2009 3:31:25 PM , Rating: 2
The trick to NCIX is their standard pricing is atrocious. You have to buy on the sales, or price match. They have a sale pretty much every month.

As for Newegg, I ordered something from them, I can confirm it comes from the US, it shipped from California and came up through Richmond then across to Alberta with UPS.

In all smaller areas now UPS and Purolator have a deal going where they are delivered by the same drivers. So UPS to smaller towns gets delivered by the Purolator guys. Big cities I assume no difference. I get UPS packages in this puny town now just as fast as Purolator. The trick though, do NOT have them deliver to your home if you can help it. Use a business address if at all possible. When I get shipments sent to work I get way, way better results.

RE: yep...
By TSO on 4/8/2009 12:09:36 PM , Rating: 2
If you don;t find them competitive, where do you shop? I monitor ncix, tigerdirect, memoryexpress. I often find competitive, but it depends on the item and what specials they have on that week.

RE: yep...
By Titanius on 4/8/2009 12:22:35 PM , Rating: 2
I also monitor those sites and I can tell you one thing that I do, go to find items you want, open a tab, go to NCIX, select those same items, pricematch them to the NewEgg prices (if required) and checkout. NCIX is in Canada so its shipping is a lot better than NewEgg's shipping because of obvious US/Canada restrictions (border charges etc).

If NewEgg wants my business, they will need to fix their shipping costs and work out something with the Canada Customs or make a shipping center here in Canada.

RE: yep...
By BernardP on 4/8/2009 3:00:03 PM , Rating: 2

Same for me. When I order from NCIX instead of NewEgg, I avoid Quebec provincial sales tax and pay less for shipping. NewEgg needs a canadian warehouse in BC to put themselves on equal footing with NCIX.

Only real advantage of NewEgg is better availability of a wider range of products.

For consistently better prices than NCIX, try, also located in BC. Also an easy pricematch for NCIX.

I hope someone from is reading this thread.

RE: yep...
By mwnl on 4/10/2009 3:27:46 PM , Rating: 2
right, ncix is better in all respects...

RE: yep...
By ATC on 4/8/2009 3:51:27 PM , Rating: 2
Their pricing is just not competitive.

I think that depends on the items. I had to buy three things in the last couple of months (an expensive Canon toner cartridge, a high-end office Brother P-touch unit and a WD external passport drive firewire model) and I compared the exact three items at shops locally (FS, BB, NCIX and Staples) and even with the shipping (which was expensive) they still came out about 30-35% cheaper through Newegg, so I ordered.

Here's the problem for me though. The shipping took forever and, looking through the shipping log, my stuff appear to have gone through every single city, town and village from California to Alberta. It took 16 days to get here. The expedited shipping option was even more ridiculously priced. And to top it all off, UPS left my package on the front door without even a knock on the door (I was home all day). That's the side of that I do not appreciate.

RE: yep...
By Flunk on 4/8/2009 3:55:10 PM , Rating: 2
There is a point to that, the shipping that New Egg charges in Canada basically kills it for me. It's just cheaper to order from NCIX, and I don't have to deal with border hassles either.

RE: yep...
By cochy on 4/8/2009 4:14:38 PM , Rating: 2
I've bought from NewEgg on a number of occasions. I love their service. Shipping costs is an issue sure, but that can be mitigated by ordering a lot or watching for "free shipping" specials.

NCIX is great two, but Newegg wins hands down on web site design. Tigerdirect is the dumps.

RE: yep...
By BruceLeet on 4/8/2009 9:20:48 PM , Rating: 1
I agree. I haven't purchased from .ca yet. And I dont plan to until:
Prices are competitive with other canadian e-tailers. Shipping is free.
Paypal w/ bank transfer is accepted. I dont own a credit card and don't plan to, ever. They seem to bring down individual economy.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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