Final Words

There's not much you can conclude about touring a warehouse like Newegg's, there's no buying recommendation, there are no roadmaps to talk about, or upgrade paths to plan out. That being said, there are a couple things that we took away from the experience:

Quite possibly the most impressive part of the tour was the automated setup of the warehouse that Newegg's logistics team lead by VP, Howard Tong designed. Wherever possible the room for human error was minimized or completely removed, and the system itself is constantly learning from the way that Newegg's customers shop to further optimize itself as time goes on. The likelihood of your order getting damaged at Newegg's warehouse is very slim from what we saw, everything is handled very carefully and wrapped very meticulously. As we mentioned earlier, the potential for human error is as minimal as possible; we can only imagine what the Newegg folks would do to their warehouse if they had a few capable robots.

The other very impressive aspect of the tour was exactly how clean the warehouse was. While we wouldn't want to eat off the warehouse floor regardless how clean it was, we were quite impressed at how tidy the whole operation is.


From left to right: Howard Tong (VP), Anand and Ken Lam (Vice Chairman)

Given that the AnandTech readers were some of the most vocal in favor of Newegg in its early days, VP Howard Tong did have some nice things to say for you all:

"As you can see Anand, we put great effort into building a bulletproof infrastructure because we are committed to ensuring our customers have the best service. Sure, you can find smaller companies that may be a dollar or so cheaper, but at Newegg we decided we wanted to give our customer the best experience every time, and that is why we must invest into advanced systems that other companies do not have. We built all this with the customer specifically in mind.

Newegg has never before given the public this kind of exclusive look into its internal business proceses. At Newegg we have always loved the AnandTech reader. These are people whose deep love and understanding of technology help drive its innovation and advancement. In appreciation for this passion we will always do our best to give our tech customers the best selection, prices and service."

We hope this tour has been enjoyable and we'd like to thank Newegg for giving us the opportunity to present you with it. Now head on over to the entry form and try to win those Athlon 64 X2 4600s.

Shipping and the UPS/FedEx Debate
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  • Blondie - Thursday, February 16, 2006 - link

    The article was very informative. Thank you so much for taking the time to bring it to us.
  • Bozo Galora - Thursday, February 16, 2006 - link

    wow, anand is all growed up.

    I often wondered if the $50 million plus payout for AT site during the dotcom bubble that anand missed by just a few weeks has been made up for over the ensuing years. Hmmmmmmmmm.
    Was it Sharkey that got $70 million or sumthin. LOL
  • Phiro - Thursday, February 16, 2006 - link

    99.9999999% of those dotcom bubble payouts were in stock, which 99.99999% of the time dropped tremendously in value before they could unload any.

    So 99.999999% of your $50M deals turns into $50k deals.
  • jnmunsey - Wednesday, February 15, 2006 - link

    Hey man NewEgg ain't got no white employees.. Those racist bastards!
  • jnmunsey - Wednesday, February 15, 2006 - link

    No wait I found 1 white guy in this pic from page 1 of the article.. The token white guy can be found here in the middle-left of the pic
    http://images.anandtech.com/reviews/IT/InsideNeweg...">http://images.anandtech.com/reviews/IT/InsideNeweg...
  • andrep74 - Friday, February 17, 2006 - link

    Yeah, have you ever read the requirements for getting a job there? You practically have to speak Chinese...
  • yanman - Wednesday, February 15, 2006 - link

    Anand, how about you use this chance to get NewEgg to offer international shipping for us poor aussies :)
  • Schmide - Wednesday, February 15, 2006 - link

    but with all that technology. How come my browser never starts on page 1 in their hot deals section. It’s always page 3 or 4. LOL.
  • Slaimus - Wednesday, February 15, 2006 - link

    Newegg got (in?)famous on Anandtech when they were the only one to sell the Radeon LE (Sapphire version imported from China, back in the day when all ATI was made by ATI themselves). It was far cheaper than the Made by ATI Radeon DDR. This got posted in Hot Deals forum and everyone was pleased with their fast and free shipping. They got in trouble, however, when people found out it was the LE (slower) version instead of the full Radeon DDR. There was a big uproar (I think the thread grew to 500 posts or so), and Newegg was forced to take in returns or offer price adjustments. This is also what started the cheap "refurbs" that newegg sells, which were just customer returns. This was probably also why Newegg started posting the core/memory speeds of graphics card they sell.
  • kmmatney - Wednesday, February 15, 2006 - link

    Heck yeah!!! I bought one of those Radeon LEs for cheap after the first debacle. I flashed the BIOS to a full Radeon. It gave me a top of the line $150 video card for $65!! Back then, top of the line as $150 :(.

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