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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  • aslaw - Wednesday, February 15, 2006 - link

    This is my first post: I've perused your site but linked in today through Ben's Bargains, and I was fascinated by the Newegg story! I've purchased from those guys and they are, indeed excellent vendors. Having now "seen" their operation and read about their commitment to quality, they'll remain a first choice when I am shopping.

    And you, Anand, have performed a real service by showing this to the web community. I'm only sorry that when I was in Los Angeles 2 weeks ago that I didn't happen upon the Newegg facility (hard to miss with the big sign on the front wall!!

    Andy
    Reply
  • Johnclarkiii - Wednesday, February 15, 2006 - link

    I have been reading your articles fairly often because I am a web subscriber to CPU. I really do enjoy your writing. In this case I enjoyed it so much I had to join your site and tell you thank you for your excellent writing but especially for the Newegg warehouse article. I buy primarily from Newegg and I work in the warehouse at Carpet Bonanza in Zeeland MI. It is a different kind of warehouse but it is very intersting for me to see just how Newegg handles the product. Again, thenk you very much. Keep up the great writing and I look forward to more interaction with you in the future.

    John
    Reply
  • Wesleyrpg - Wednesday, February 15, 2006 - link

    hey....anandtech is a worldwide site, so why is the competition only for americans?

    not very diplomatic....us aussies get screwed over again. (grrr stupid xbox360 delay)
    Reply
  • Ricardo - Wednesday, February 15, 2006 - link

    Wow Anand, how much are they paying you? Those are some seriously cool conveyors and bins, but this article reads like an advertisement or promotional campaign the whole way. Great detailed overview of the order process, nonetheless. Reply
  • kmmatney - Wednesday, February 15, 2006 - link

    NewEgg has been an advertiser on Anandtech for quite a while - these advertisers help keep Anandtech running, so any advertisement is deserved. Regardless, it was an interesting article. Reply
  • Staples - Wednesday, February 15, 2006 - link

    I am surprised it took someone so long to mention that this is 100% pure advertisment. Reply
  • nomagic - Wednesday, February 15, 2006 - link

    Newegg could be paying AnandTech, but who cares as long as it is a good read. This article is informative and interesting. Reply
  • krwilsonn - Wednesday, February 15, 2006 - link

    I love Newegg...been perfect so far and even sent me a thank you for being a customer letter with a free t-shirt, eVGA keychain, and Newegg sticker out of nowhere just because I placed a couple orders earlier in the year. Oh and as far as the UPS vs. Fedex debate, would you feel more comfortable if Fedex left your $500 CPU on your porch just because you are not home? Sure it is a pain but come on, it is worth the extra hassle to keep your gear out of harm's way. Reply
  • ohnnyj - Wednesday, February 15, 2006 - link

    quote:

    As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.


    Just ordered a Logitech G7 mouse on Sunday, arrived today (using UPS Ground). Great work Newegg!

    John
    Reply
  • Harkonnen - Wednesday, February 15, 2006 - link

    Canadians can't enter :(

    boo

    *cries*
    Reply

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