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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 Pirks on 4/8/2009 3:05:42 PM , Rating: -1
Yeah, truth hurts. Try to live here in Canada for a while and then you'll get better/wiser, american smartass :P

By spread on 4/8/2009 3:17:54 PM , Rating: 3
I live in the GTA and I can confirm for our American neighbors that you're a dumbass.

By Pirks on 4/8/2009 4:07:54 PM , Rating: 1
I live in BC and after waiting for a year to get that motherf@cking driver's license and getting laughed at by my US buddies who got driver's licenses in no time I can confirm that you are just as stupid idiot as any other downrating asshole here. Try to live in BC for a while before opening your mouth, okay?

By Pirks on 4/9/2009 10:27:29 AM , Rating: 2
I don't own any Macs, you idiot. How many times I have to tell that before you remember?

BC climate is fine, if not for healthcare, idiotic licensing of drivers, double sales tax, piss poor choice of goods in (online) stores, insane new car prices and stuff like that it'd be pretty nice place to live. Especially when you live close to the US border and can go abroad to do some proper shopping with the real selection of goods and not insane prices.

You should not be ashamed to be Canadian if you understand shortcomings of your government.

By just4U on 4/8/2009 9:47:48 PM , Rating: 5
Actually he is bang on about some things... and while I disliked the wording it's still relevant. I've shipped items all over the United States via Canada post. They tend to get there within 5 business days and no one is charged anything extra. Not the case when they ship stuff up here and that is a little frustrating. There is supposed to be free trade between our two countries.. Why can't we just buy the things we want, pay our initial taxes (provincial and federal) and be done with it? Shouldn't be so much of a hassle.

By omnicronx on 4/9/2009 1:26:58 AM , Rating: 2
Americans are charged the same Duty, and because of NAFTA many products are exempt from duty altogether. You just don't hear about Americans paying duty that much as they don't buy nearly as much from us as we do from them.

By just4U on 4/9/2009 2:57:29 AM , Rating: 2
Well I guess they were lucky then .. Everything I've sent south has gone thru customs and they were none of them were ever charged for it.

By just4U on 4/9/2009 9:52:36 AM , Rating: 2
(grin) I screwed up the wording there. What I meant to say is everything I've ever sent has gone thru customs. (It's all been opened and gone thru to!) Not once has anyone been charged duty on any of it.

"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
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