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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  • Einy0 - Wednesday, February 15, 2006 - link

    I will always buy from Newegg, Unless it's a lot more expensive than somewhere else or not available from them. I always get my stuff fast. I get my stuff much faster now that they use UPS. Fedex used to hold my packages extra days until the last possible day to make it on time. I live in Massachusetts. There is a Newegg warehouse in New Jersey. Most of my stuff comes from NJ. With Fedex 3 day, I'd get the stuff exactly 3 days later. Fedex ground, forget about it. It would take seven days or more. I'd track the crap and Fedex would hold the stuff up in their warehouse in CT all the time. Sometimes the package from NJ would go to like Chicago then come back to the East Coast. Stupid crap all the time. With UPS, I get UPS ground and I get the stuff the next day. Everytime I order if it ships from NJ via UPS I get it the next day. Packages are always in great condition as well. Ups delivers to my area of town usually between 11 and Noon. Fedex comes at like 4:30PM. If no one is here to accept my package Fedex will leave me the stupid slip on my door. UPS almost always will just put it inside my porch. I avoid Fedex at all costs. Reply
  • johnsonx - Thursday, February 16, 2006 - link

    When FedEx holds your boxes with status "Package not due for Delivery", that seems to be based on how busy the driver's route is that day. On busy routes, they'll keep your box until the last possible day (and you can ill-afford to complain, you paid for 3-day shipping). They fill the truck with everything that must be delivered that day, and then if there's any room left the stuck in tomorrow's packages, the next days, etc.

    For me, if I want something ASAP but don't want to pay for expeditied shipping, I'll have it shipped to my home address. Usually they deliver it as soon as they get it. If I have something sent to my office (which is probably where I need it), they sometimes hold it 1 or even 2 days.

    Obviously this is going to be different for everyone, but that's how it works for me.

    As to the whole UPS vs. FedEx debate, I agree that when the switch first occurred, UPS sucked. But on my more recent orders, UPS has been quicker and 'cleaner' than I had ever expected of FedEx.
    Reply
  • WileCoyote - Wednesday, February 15, 2006 - link

    I had stopped ordering from Newegg because of Fedex. I started ordering again when they added UPS. UPS drops it off if I'm not home but Fedex makes me drive to their building to pick-up the package for missed deliveries. About 90% of the time the Fedex driver didn't leave a notice behind so I wouldn't even know the package was waiting for me. I hate Fedex - for the inconvenience and for hiring losers. Reply
  • bldckstark - Wednesday, February 15, 2006 - link

    I have had the same experience with FedEx. Their airport hub is 5 miles from my house, but a box will sit at the warehouse for 3 days until the actual "delivery date" is reached. Then it comes. This might be good for some people who don't expect to see it til then, but dang, seeing my stuff sitting in a warehouse for 3 days tees me off. By the way, my sister is one of the losers. She said they didn't leave notices for you because you are rude and your house smells. Fedex has a card you can fill out one time to tell them to always leave the box regardless of whether it requires signature or not. The delivery confirmation says "signature on file". UPS doesn't do that and I wish they did. USPS too. Reply
  • bob661 - Wednesday, February 15, 2006 - link

    UPS is MUCH slower than Fedex to my house. If I order something from the CA warehouse, it'll come next day even if I pick the 3 day selection! UPS will take a least a week if I pick the 3 day. Reply
  • dev0lution - Wednesday, February 15, 2006 - link

    ...then you should do a tour of some of the larger System Builders in the same neighborhood. Just as automated in many cases, but with assembly lines, burn-in stations and floor to ceiling with product.

    Don't get any ideas though, since the rent-a-cops are packin' heat ;)

    Reply
  • skyyspam - Wednesday, February 15, 2006 - link

    This was definitely one of the more enjoyable (perhaps original?) tech-related articles I've read in a long time. I've always been curious as to how newegg operated--and now, thanks to Anandtech, I know! Reply
  • Slash3 - Tuesday, February 14, 2006 - link

    ...is cheaper shipping to Alaska! That's one of the reasons I keep going back to Zip Zoom Fly - they offer "free" 2nd day shipping on many items, and while the offer isn't valid to AK for some reason, they *do* offer a $10 2nd day rate. Newegg's shipping calculations to AK always end up being quite high for few or single item orders, and they don't offer alternatives such as USPS. I know we're a small market, but a thousand here, a thousand there, and pretty soon you're talking about real money. ;)

    Cool article, keep doing these! It's great to get a peek inside the tech industry, definitely something you don't have a chance to explore very often.
    Reply
  • Marthisdil - Tuesday, February 14, 2006 - link

    Almost every place I've looked, it's cheaper for me to have stuff shipped ot me via FedEx ground than via UPS Ground =/ Reply
  • Regs - Tuesday, February 14, 2006 - link

    In one of their warehouses like they did with kbtoys back in the day?

    Wooo weee. Give me a cart and ill tare up that ware house in seconds.
    Reply

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