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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 Newegg.ca 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 Darga on 4/8/2009 1:22:53 PM , Rating: 2
Indeed it does work the other way. Strangely enough it is often faster to ship from the UK to me in Canada. I refuse to ship with UPS after the last incident. I had purchased a laptop from dell Canada and had it shipped to me here so that I could get it installed with certain software, remove bloatware etc for my girlfriend in the US. (Note I did check to see if it was ok for me to send a laptop with the border services and dell and it was all fine) First of all I payed for 3 day guaranteed service (or a "full or partial refund"-lady at the ups store) and the item did not arrive for 8 days. Upon arrival she had to pay a fee to get the item (not brokerage because I covered that already) A couple of weeks later I received a letter from the dept. of homeland security accusing me of illegally importing laptops from Malaysia and reselling them in the states without a license. After many hours on the phone with dell, ups and the dept. we traced the problem down to the ups person improperly stating that I was a business which imports laptops instead of someone just sending a gift (which would have been fine) As of now ups has offered me no compensation or "full or partial refund" for the ordeal and so I have decided to boycott anything that deals with UPS. That was only the latest problem with them (not including the time where they left my $800 rc helicopter which was supposed to be signed for, at my neighbours which we did not like and had a struggle to locate where it was)
Sorry for the long post but I finally felt like venting.


By Motoman on 4/8/2009 1:37:03 PM , Rating: 2
...I would reckon that the shipping of things from the UK to Canada is easier than from the US because of the political ties there. Governor General and all that.


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