Established in 2001, Newegg has quickly become a household name among AnandTech readers. They originally won the hearts of many readers by offering extremely competitive prices and keeping customer service a top priority. Since their humble beginnings the company has grown tremendously, with net sales in 2005 of approximately $1.3 billion, a 30% increase over the prior year. Newegg currently stocks over 60,000 different products and ships up to 25,000 orders per day, 98% of them within 24 hours.

On a recent trip to Los Angeles we were given the opportunity to take a tour of one of Newegg's warehouses. While we've been able to tour Newegg's facilities in the past, this time they let us publish pictures and take you on a virtual tour of their facilities - effectively letting us follow the path of an order after it is placed online. Newegg sweetened the deal even more by working with us to give away some of their product to you all, but more on that later.


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Newegg is trying to target 2 day turnaround for all shipments, regardless of shipping method, thanks to strategic placement of their warehouses all over the country. The warehouse we toured is a medium sized generation 2 model at 180,000 square feet, Newegg’s latest warehouse is a third generation model at 300,000 square feet in Tennessee designed to service the east coast.


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What you see in the picture above is a glimpse at where the action takes place in Newegg's 180,000 square foot facility, this article will give you a brief look inside Newegg and how your orders get from their website to the shipping truck so very quickly.

The Beginning
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  • bldckstark - Thursday, February 16, 2006 - link

    I did not mean to imply that AT was paid for the article, just that it would not be a conflict of interest even had they been.

    Many, many articles are printed for payment in this world every day. Credibility is lost when the reporting becomes biased, incomplete, or incorrect. Show me how reporting on the most liked and largest computer parts supplier in the U.S. creates bias for a site that tests the parts, not the delivery guy. (I believe that's blewboy.com. Not that I've ever been there. And my screen name is not Wun Hung Guy either.)

    Heck, AT doesn't even order most of the parts they test, they are sent by the manufacturers.

    You are not being reasonable. Would Anand have retained his credibility if he had coined an article on Coca-Cola's warehousing system? Think about it.
    Reply
  • bldckstark - Wednesday, February 15, 2006 - link

    So why do you care? Creating an article showing the people who buy most of the stuff coming from the largest supplier can only be a good thing. I know when to order from Newegg and when not to. I can type in different addresses to Zipzoomfly (googlegear!) and Mwave to check prices. Why should any of us care if Anand got paid for this, this site is a business too, in case you didn't know. A payoff from Newegg for an article wouldn't be a conflict of interest for AT anyway!

    Consider the fact that all high volume warehouses are run in a similar fashion and you might realize that the article was fun but worthless as advertisement. Few people out there are going to assume that all other suppliers box their stuff up in torch lit caves. This is more about a process than a company. Every manufacturer I have ever worked for had a similar warehousing system to get parts to the assembly areas.

    Now get back on your ZipZoomFly forklift and get my order shipped out that I placed 3 days ago. Whiner.
    Reply
  • rubikcube - Wednesday, February 15, 2006 - link

    Where are all the oompa loompas? Reply
  • Spacecomber - Wednesday, February 15, 2006 - link

    Skimming through all the positive comments about this article, I'm feeling a bit left out. I seem to be having quite a bit of trouble getting the pictures to pull up on each page. Sometimes they eventually appear, but often I get nothing, even letting the browser window just sit open to the article for several minutes.

    You guys aren't helping EA host the latest BF2 patch on your image file server are you? ;-)
    Reply
  • LoneWolf15 - Wednesday, February 15, 2006 - link

    To all the guys at Anandtech,

    I know a lot of our posts on reviews and articles are critical. It may make it seem like a thankless job sometimes (even if we are only offering constructive criticism, it can often seem like a personal attack). So I'm glad to be able to say I really enjoyed this article, from a techie perspective and as someone who has worked in a warehouse long ago and loves to see how far automation has come in distributing products. Documenting the whole thing and including pictures was a great thing.

    Thanks for continuing to offer us quality articles, and thanks for additionally giving us the chance to win free stuff. Even when we don't say it, it is truly appreciated. And thank NewEgg for us, for offering themselves up for inspection.
    Reply
  • gibbsk - Wednesday, February 15, 2006 - link

    Thanks Anand for the inside look at NewEgg!! I've always wondered how they got things out so fast, and now I know! :)

    Seriously, NewEgg is a great retailer and I have shopped with them for years. UPS Ground from CA to my house was taking a week, but now with this new warehouse in TN, hopefully I will get things sooner!

    Keep up the good work Anandtech and NewEgg!!!
    Reply
  • EODetroit - Wednesday, February 15, 2006 - link

    Wow, I can remember the day when I thought Newegg was just some Egghead ripoff/spinoff company. Then I kept finding the lowest prices for stuff I wanted at their web site. To top that off, they never screwed up an order of mine, where other companies would screw them up (and still do screw them up) all the time. And then they had the user reviews, which were great before they were censored.

    I'm an IT tech at a company with < 100 employees, small company. Been here for a number of years now, and people often come to me for computer advice. I can remember many years ago, someone came up to me asking about the new DVD burners back when they just came out. I refered him to the usual review sites, but I also took him to Newegg's web site, and showed him the user reviews. 10s and hundreds of reviews by people that actually bought the burner, and often ripped it to shreds, saying things like "Newegg rocks, they got this to me in 2 days, but this DVD burner sucks, sorry, get XXXX burner instead". We were both really impressed that Newegg would let those reviews stay, and it really helped him get the best burner for his money that he could. I'm sure he ended up ordering it from Newegg too since I put his computer together for him a couple months later.

    So anyways, eventually we hired an Intern, and with the extra manpower, stopped buying pre-built computers. Now we get parts from Newegg, and I or the intern put them together. With total control over what goes in our computers, I must say we've had MUCH fewer part failures than what we used to get. That let us not hire more IT staff even though the company has doubled in size, I don't have crap parts failing all the time like I used to any more. Without Newegg being so reliable and inexpensive, it wouldn't have happened.

    GJ Anand and Newegg the past 5 years. Hoping for another 5.
    Reply
  • huges84 - Wednesday, February 15, 2006 - link

    Dang the article has been posted on Slashdot. Luckily they didn't mention the contest. But still, I think my chances of winning have been seriously deminished. :( Reply
  • Phiro - Wednesday, February 15, 2006 - link

    None of the pics show up for me now... Slashdot effect? Reply
  • yacoub - Wednesday, February 15, 2006 - link

    The only thing missing is how much discount NewEgg employees get and if they're hiring! ;)

    Very nice article.
    Reply

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