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Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing.  If Soverain is successful in getting an injunction against Newegg, the company may be forced to "stop or alter certain of our business activities."

In the future, Circuit City -- although its physical stores went bankrupt, a liquidator purchased the company's online business and keeps it running -- will lead the charge of online businesses that aim to derail Newegg.

The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg's largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.

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I'll stick with Newegg and Amazon
By pepito perez on 9/29/2009 12:08:12 AM , Rating: 2
I usually buy from Newegg and Amazon. Recently, lured by a 30$ discount in the ps3 slim, I ordered from Dell.

This is what I expect from a major online retailer:

1. The availability is clearly stated, up front. If the item is out of stock you can pre order it or get notified when becomes available, but you will not be able to order it.
2. The vendor is clearly stated. If it's a 3rd party the major online retailer will take responsibility for whatever problems might arise.
3. The delivery date (usually less than a week) is clearly stated. Your date is not pushed back by a month. Never.
4. Their customer service is helpful and polite. They don't try to pass you from department to department, push you into keeping your order,etc, etc.

Dell didn't meet any of those expectations. They will sell you out of stock items from third party vendors without warning, and then push back more than 1 month the delivery date.

So I canceled, got a 7$ rebate for all the mess, and 5 min latter I had my PS3+controller ordered from Amazon, on stock, no taxes, discount in the other items (not in the ps3), 2 days guaranteed free delivery. All together less than two$ more expensive than my original Dell command.\

I believe the best way to serve the community is to let know as many people as possible how Dell works, so nobody gets fooled about what to expect.

RE: I'll stick with Newegg and Amazon
By Sazar on 9/29/2009 9:32:30 AM , Rating: 2
The issue with this is this is your anecdotal experience.

For better or worse, Dell does offer one of the larger online catalogs of IT equipment, top to bottom. I have had some minor issues with Amazon, Dell and Newegg (3 sites I order from typically) but for the most part, all of them work well and get me the items I order within the time-frame I expect.

All have good customer care and return policies, with Amazon and Dell having lower costs for returns. And if you look around, you will see horror stories with all of the online e-taillers.

By pepito perez on 9/29/2009 5:52:34 PM , Rating: 2
I agree all the dealers have horror cases. My warning is not about my case (which affected a number of people but could still be considered one-off) but about the fact that Dell sell out of stock, 3rd party items without telling you. In consequence the consumer can't make an educated choice of the risks they are taking when ordering from Dell.

I'm not trying to moan about my problem (is done and dusted) just to help other consumers when shopping around.

"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
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