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A Look Inside Newegg

ScuttleMonkey posted more than 8 years ago | from the where-the-metal-meets-the-meat dept.

Businesses 327

An anonymous reader writes "AnandTech has an interesting look inside Newegg's 180,000 square foot facility. Effectively, they followed the path of an order after it was soon placed online. AnandTech was able to get a tour of their facilities before, but this is the first time they allowed them to publish any photos."

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327 comments

SWEET! (4, Funny)

DrEldarion (114072) | more than 8 years ago | (#14722392)

On the bottom of the page:

Print this article
Email this article
Find the lowest prices or Buy it from Amazon for $638.98


Best investment ever.

hmmm (5, Insightful)

larry bagina (561269) | more than 8 years ago | (#14722398)

shouldn't this be under the Special Advertising Section [slashdot.org] ?

Should I feel guilty (1, Funny)

TubeSteak (669689) | more than 8 years ago | (#14722445)

shouldn't this be under the Special Advertising Section? [slashdot.org]
Should I feel guilty for wanting to make a "frist post" in every single one of those threads?

It's like pure untouched snow, just waiting to be pissed on. And I say that with the best of intentions, as every year, I spell out /. in the snow.

Re:Should I feel guilty (1)

daliman (626662) | more than 8 years ago | (#14722534)

Ahahah, magic. I've been reading for years (more than the user id implies anyway) and never even knew that section existed.

Re:Should I feel guilty (1)

stripe42 (845170) | more than 8 years ago | (#14722643)

Sorry for more off-topic... My first time seeing too. If first article is any indication, appears to have started on 1/27/2006 [slashdot.org] . Heh, shows how often I check the left menu.

Re:Should I feel guilty (4, Funny)

Benley (102665) | more than 8 years ago | (#14722719)

It's like pure untouched snow, just waiting to be pissed on. And I say that with the best of intentions, as every year, I spell out /. in the snow.

Wouldn't that be a "frost pist" then, not a "frist post"? ;-)

Re:hmmm (2, Interesting)

Matt Perry (793115) | more than 8 years ago | (#14722627)

How did you even find that special advertising section?

Looks fishy to me. (3, Insightful)

agent dero (680753) | more than 8 years ago | (#14722408)

"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."

Does this not scream advertisement to anybody else? While it is somewhat cool to see what happens once orders placed, this stinks of a "sponsored article"

Seriously "A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them." is considered a story?


"Recently AnandTech got a chance to tour some of Microsoft's offices. Established in 1981, many AnandTech readers will be familiar with Microsoft for offering innovative products, pushing the envelope in the software industry, and their advantage over Linux products in terms of TCO."

Get a life, dude (4, Insightful)

fm6 (162816) | more than 8 years ago | (#14722477)

Businesses have always trolled for fluffy, friendly journalism. Doesn't make it an advertisement.

When Firefly premiered, I submitted a gushing story to Slashdot. (I had seen a bootleg of the pilot, and had been blow away by it; the actual series was rather less exciting.) There must have been 20 posts by people who were convinced that I was a sock puppet in the employ of Fox. None of them bothered to check my post history.

Sock puppets do exist. I've even been fooled by them. But in a consumer culture where people where company logos as a "personal statement", you shouldn't be suprised to see a little uncritical praise now and then.

Re:Get a life, dude (0)

Anonymous Coward | more than 8 years ago | (#14722595)

where people where company logos

"wear" (2nd).

Re:Looks fishy to me. (2, Insightful)

crazyjimmy (927974) | more than 8 years ago | (#14722505)

I don't think this is particularly relavent. Especially since, during my last order with NewEgg (and I mean -ever-) they:
A: Stubbornly used an old billing address after I had revised it.
B: Sent me an email saying my order would be deleted in 3 days if I didn't contact them by phone or email to correct the billing address.
C: Ignored my repeated attempts to contact (15+ phone calls to a busy customer service line, and 2 emails sent the day I recieved the notice) until they-
D: Cancelled my order, at which point they responded to my email saying "we're sorry, we cannot help you because that order had been cancelled".
and of course,
E: When I contacted them about the bum service (using the same email address that they responded to the first time), they completely ignored me. I instead placed my order with Mwave, who got it to me two days after I ordered it (and saved $20 in the bargain).

I'll be hard pressed to ever shop at newegg.com again, and I definately do not care how they ship things (since the -if- seems to be a much more interesting adventure)

--Jimmy

Re:Looks fishy to me. (1)

Oscar_Wilde (170568) | more than 8 years ago | (#14722514)

Seriously "A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them." is considered a story?
 
A lot of Slashdot readers may never have been close enough to a warehouse to know this kind of thing, sadly.
 
The pick and pack process for Newegg really isn't that interesting though. You'll find the same kind of setup in a lot of warehouses. Small warehouses wont have an automated conveyer system and a lot of large warehouses wont have as fancy a system though.

Looks fishy to me-Logistics. (0)

Anonymous Coward | more than 8 years ago | (#14722567)

"The pick and pack process for Newegg really isn't that interesting though. You'll find the same kind of setup in a lot of warehouses. Small warehouses wont have an automated conveyer system and a lot of large warehouses wont have as fancy a system though."

Agreeded. I've worked a lot of warehouses and Newegg's setup is similiar to one at a company I use to work for about five years ago. The only new thing to me was the box maker. The really interesting geeky parts is what one doesn't see. The computers and software that makes logistics work. That's also the part that falls under trade secrets.

Re:Looks fishy to me. (1)

NickCatal (865805) | more than 8 years ago | (#14722632)

and a lot of large warehouses wont have as fancy a system though

A lot of warehouses don't care about the insane turnaround speed that Newegg cares about...

Re:Looks fishy to me. (5, Funny)

harlows_monkeys (106428) | more than 8 years ago | (#14722516)

eriously "A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them." is considered a story?

No, that is considered a "sentence". People called "writers" put together groups of related sentences to form "paragraphs", and groups of related "paragraphs" are what is considered a story.

Re:Looks fishy to me. (4, Funny)

wilburdg (178573) | more than 8 years ago | (#14722625)

Seriously "A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them." is considered a story?

Now, now- don't be so quick to judge.

I found the statement, 'the automated box maker makes a lot of boxes' to be quite insightful.

Re:Looks fishy to me. (1)

prockcore (543967) | more than 8 years ago | (#14722705)


Seriously "A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them." is considered a story?


It's news to me! I've played dozens of FPSes, and have never seen this so-called "pallet"!

Re:Looks fishy to me. (1)

Propaganda13 (312548) | more than 8 years ago | (#14722779)

Offhand, CS:Source Office and Assault Maps and FEAR Factory maps have pallets. I'm just too lazy to think back any farther than that.

New Egg not one of my faves (4, Interesting)

queenb**ch (446380) | more than 8 years ago | (#14722409)

If I'm buying for myself, it's probably not going to be from New Egg. I can usually get the same stuff elsewhere on the net for less money.

If I'm buying for work, I've got a list of approved vendors from the bean counters- *eye roll* and New Egg isn't nearly stuffy enough and hasn't bought any of the bean counters lunch often enough to make it on their list (just my best guess at how vendors are selected).

It's nice that they have wicked cool facility, but if you really want to see some supply chain stuff in action, visit Wal-mart. Now you can order any thing off the Walmart web site and have it delivered free to your local Walmart. Show me how those orders are processed, and as much as I hate Walmart, you'll definitely have my attention.

2 cents,

Queen B

Re:New Egg not one of my faves (5, Insightful)

Anonymous Coward | more than 8 years ago | (#14722435)

Typically their prices are not the best on pricewatch but they're close, and their service is great. Most places that are the absolute cheapest on pricewatch have shitty service, should you ever have to return anything. I got a case from Newegg that was dented and they just let me keep it.

Lots of people bitch about service, but when push comes to shove they'll forego service to save a few bucks and service oriented businesses will lose out to discounters. I see Newegg as a great compromise of good service at the best prices possible, and give them almost all of my hardware business as a result.

I think you'd find that looking up the resellerratings.com listing for most companies selling stuff at the very cheapest prices, they don't compare to newegg.

All that said, this article looks like a cheesy, paid-for fluff piece.

Web site organization and categorization is great (3, Insightful)

MojoStan (776183) | more than 8 years ago | (#14722756)

I agree that prices are good, if not the best. They have a good reputation for speed and service, although anectodal evidence in this story's comments shows they might be going through growing pains.

But since its inception, what seperated Newegg from every other low-cost web retailer was the organization of their site. If you want to browse products, it's so freakin' easy pick a category/subcategory and narrow the choices down based on features you are looking for. I can't believe other sites haven't gotten this right yet (Mwave is okay).

For example, Buy.com has great prices for some items, especially when a heavy item qualifies for free shipping. But try browsing Buy.com's selection of 1GB DDR2 memory kits (2x512MB) or their selection of motherboards with socket 939, microATX form factor, nForce4 chipset, and 4 dimm slots. At Newegg, it's a snap.

The first time I browsed Newegg, the categorization of their inventory was as impressive to me as Yahoo's.

Re:New Egg not one of my faves (2, Informative)

Cunk (643486) | more than 8 years ago | (#14722444)

NewEgg doesn't offer net terms to businesses. This is probably the main reason they don't appear on most company's approved vendor lists.

Re:New Egg not one of my faves (1)

Omnieiunium (872399) | more than 8 years ago | (#14722601)

I remember watching a show on NBC, or one it's other channels, and they were doing a documentary about Walmart. There factories are incredibly complex and insane. Everything you buy is sent to a central database within minutes of your purchase and is analyzed by the computers who determine what products are needed at various stores around the country, so they can send them out instantly. It is some crazy complex system where every item is tracked to the store. Too bad I can't remember much more.

Re:New Egg not one of my faves (0)

Anonymous Coward | more than 8 years ago | (#14722642)

Can you spell? No. But I guess you don't really need to know how to spell when you're asking "do you want fries with that?"

Re:New Egg not one of my faves (5, Informative)

dtdns (559328) | more than 8 years ago | (#14722686)

I used to work for Wal-Mart a number of years ago. Their system is called SMART (IIRC, that is Systematic Merchandising and Applied Retail Technology). Their process is known as "perpetual inventory" and for good reason. The computers know how much inventory is in the store at any given time (like any good POS), as well as how many will fit on the shelf, how many come in a case, etc. When it sees that the "on hand" count is getting to the point where the shelf cannot be kept full from overstock, it orders more. It also knows the inventory levels at the warehouse, and how long the delivery will take, so it can make some predictions that result in stock arriving just as the shelf is no longer full. The system also takes into account sales that are coming up and adjusts the order amounts accordingly. Department manager and some floor associates have the ability to manually adjust the on-hand inventory counts, so you can trick it into sending you more of an item if you want to do a department special. It does a lot more than that, and on paper it should result in an almost fully stocked store and and pretty empty back stock room every morning after the previous night's trucks have been worked out to the floor.

In practice, however (at least at the store I worked at), the on-hand counts were always off due to managers screwing up, shrinkage, warehouse mishaps, etc. The result was that some items were almost always out of stock, and others were piled to the ceiling in the back room because the system kept ordering more when we obviously didn't need any more. To complicate matters, you have holidays and seasonal items to account for, and some departments are somewhat independant of the rest of the store (shoes and jewelry come to mind).

And that's just at the store level. I can't imagine what kind of magic lurks at the distribution centers.

Re:New Egg not one of my faves (2, Interesting)

Solder Fumes (797270) | more than 8 years ago | (#14722753)

It's not so much magic, as brute-force labor. The computers do all kinds of fancy things over in their little air-conditioned room, but the actual implementing of the orderfilling is dependent on miles of conveyor and sorting equipment, forklift drivers, and people who split up boxes into the fine-tuned per store replenishments. It's possible for a box or even a pallet to get lost, or sent to the wrong store. Misread labels can cause incorrect sorting. Equipment breakdowns can cause a backlog and inevitable mixing of orders. All of the above problems can be quickly resolved with a good management staff, and amazingly most of them are pretty damn good.

Wal-Mart has over a hundred distribution centers and warehouses scattered across the nation; Newegg's warehouse is 180,000 square feet but the smallest Wal-Mart centers are over 400,000. Most of them are around 1.5 million and some are over 2 million.

Re:New Egg not one of my faves (2, Interesting)

Leomania (137289) | more than 8 years ago | (#14722655)

Newegg has generally treated me pretty well; just last week paid a few bucks extra for a laptop HDD but I knew I'd get it quickly and sure enough, I did. But there was some funky thing about a 1-year subscription to PC Magazine that I could opt out of, and in doing so I could send a request to PC Magazine to get back the value of the subscription (something just under $10). I'm going to go ahead and send it in, but I tell you, stuff like that does nothing to endear a company to its customers. It feels like (and probably is) some kind of phoney-baloney bullshit; just doesn't come off as "reputable company" in my book.

It's surprising to me that there are so many places online to buy computer stuff that vary so widely in business practices... I remember well how some sites linked to by Pricewatch (such as BZ Boyz) would nickel and dime you to death on cpu/mobo combos, or infer that the quality of the components in the Pricewatch price that led you to their site in the first place were sub-standard and you should choose other (more expensive) options. Then places like Monarch Computer, who had few such shenanigans. It's so varied, but they all seem to stay in business.

I certainly can't say that Newegg has ever really treated me wrong, but still that last transaction left me feeling that if I wasn't paying attention I'd be sending PC Magazine some $$$ that I really didn't want to. I dunno, maybe it's a sweet deal and I just can't see it for what it is. Mostly, I just want to buy things at a fair price (not necessarily the cheapest) and have good service. I guess for the most part they've met that standard.

Re:New Egg not one of my faves (1)

cymen (8178) | more than 8 years ago | (#14722723)

I believe the magazine offer comes up after checking out and it's a rebate for the cost of the magazine. When I saw it before it was completely opt-in (default was NOT to get it). So did you opt-in?

Re:New Egg not one of my faves (2, Informative)

Belseth (835595) | more than 8 years ago | (#14722659)

Well ironically I just had a bad experience with Newegg. I placed an order a week ago but never got a confirmation. Some companies do not send confirmation e-mails so I didn't think anything of it. A week passed with no sign of the order. I checked their website but there was no order listed. I wound up calling them to only find they had no record of my order. I badly needed the equipment so I'm going to have to pick it up locally. I'm getting ready to build out a number of higher end systems soon but after they lost the very first order I placed I plan to go elsewhere. I'm not sure if this is so much an indictment of Newegg but internet sales in general. In the last six months over 50% of my internet orders have had problems. I've had others lost and I had a large order get duplicated. I used to love ordering on-line but now I'm hesitant to do it. I'm had multiple equipment companies put me on back order then refuse to cancel the order. Once they have your info you're at their mercy. You can save money but the risk and the hassles make it dangerous and I'm not sure I save anything in the long run. Most of the websites have issues. If you are going to depend on the internet make sure your databases work. It may have been a $400 order they lost this time but over the next month alone I had planned to spend quite a few grand with them. Loosing a week to a lost order is potentially disasterous. If I have to pay 10% more but I can pick it up same day I have to say it makes more sense in my situation. The savings are nice but it's just too much risk.

Re:New Egg not one of my faves (0)

Anonymous Coward | more than 8 years ago | (#14722682)

Waah. I've bought thousands of dollars over dozens of orders, I refer all my friends to newegg, etc.
Zero problems. Only time I've ever sent anything back was a DOA refurbished video card. RMA was easy, refund was quick.
If you buy something online and don't get a confirmation email and think nothing of it you're an idjit.

Re:New Egg not one of my faves (1)

myspys (204685) | more than 8 years ago | (#14722724)

In the last six months over 50% of my internet orders have had problems.

is it just me, or does that number sound amazingly high?

maybe some spyware has taken over your computer?

Nice... but let's see their corporate office (3, Funny)

b0r1s (170449) | more than 8 years ago | (#14722412)


As someone who works next door to Buy.com's corporate office (they're in 85, we're in 65, effectively next door) - I'd rather see their corporate office than the warehouse. Come on, how many Ferraris are in the parking lot?

Interesting (2, Interesting)

theheff (894014) | more than 8 years ago | (#14722414)

I imagined an intricate facitility, but wow! NewEgg is the ONLY website I order hardware from online, and it has never failed me. This is like when you watch the discovery channel and learn the entire manufacturing process behind a simple piece of candy.

Newegg is awesome (3, Funny)

MrP- (45616) | more than 8 years ago | (#14722415)

I havent read the article but I just want to say how awesome newegg is.

I've ordered about 15 things over the past month and they have ALL came in in exactly 1 day at minimum shipping cost ($0-$4).. Like if I ordered something today, id have it tomorrow. And their prices are really good.. I think Satan must be involved but if Satan can get me good deals and fast shipping then HAIL SATAN!

Re:Newegg is awesome (0)

Anonymous Coward | more than 8 years ago | (#14722434)

Not satan, just stan :)

I live in St. Louis, when I order from them, it arrives in 3 business days EVERY TIME, with just plain standard Fedex shipping. Whether or not I'm at home at the 2pm pickup is another story :P.

Re:Newegg is awesome (1)

MrP- (45616) | more than 8 years ago | (#14722442)

I'm in RI, everything I've ordered ships from Jersey.. Also I use the $2.99 "expedite my order" feature to get them to ship the same day (of course i make sure i order early enough)

I started using them because I ordered a laptop hard drive for work from them on a friday night. It shipped on that SUNDAY and we got it monday. Good stuff

Re:Newegg is awesome (2, Interesting)

nachoboy (107025) | more than 8 years ago | (#14722744)

"Also I use the $2.99 "expedite my order" feature to get them to ship the same day (of course i make sure i order early enough)"

Do you also check that box on your tax form that says "donate $3 to the presidential campaign fund"? The suggestion is that it somehow affects your taxes, but of course it doesn't. You just pay an extra $3.

Coincidentally, that's pretty much all that checkbox is at Newegg either. They may as well label it "Check here to pay $3 more for your order." Try not checking it some time - you'll be surprised that your order still arrives just as quickly.

Re:Newegg is awesome (2, Funny)

sunwolf (853208) | more than 8 years ago | (#14722519)

Gah! Advertisement drones [penny-arcade.com] have infiltrated slashdot!

PS, I'm a real person and I love Newegg

for serious

Re:Newegg is awesome (1, Interesting)

Anonymous Coward | more than 8 years ago | (#14722687)

Hmm, I ordered five items a few weeks ago, total shipping of like $25, or $5 per item even though it totalled about three pounds. The "3 day" UPS shipping took five days for two of the items, which were ALL shipped separately.

I like Newegg's products selection and reliability, and the prices are okay (no good computer stores local to me), but not being able to combine shipping costs is crumby, and the shipping options stink.

2 - 5 days for me (1)

green pizza (159161) | more than 8 years ago | (#14722688)

NewEgg has never taken more than 5 days for me. It's usually about 3 or 4. Sometimes 2 days.

Depending on what time of day you order, they usually package up your goodies on the same day. Standard "freeish" (sometimes they charge for certain items) FedEx 3-day shipping takes 1 - 3 days depending on where you live and how busy FedEx is.

The beauty of FedEx is they're designed for overnight shipping. Packages shipped 2-day or 3-day are usually sorted after the overnight packages and often make it in time for overnight shipping. Again it depends on how busy FedEx and how far they have to fly their planes. More distance = less time for sorting.

Nice Advertisement... (0)

Anonymous Coward | more than 8 years ago | (#14722430)

It'd be a lot more impressive if NewEgg didn't charge an extra $2.99 to "rush process" your order (this appears to be the charge to make sure that they don't just sit on your order for a day for no reason), and also if NewEgg didn't randomly tag on a Ziff-Davis subscription to your order. (You don't want it? Just print out a form, and send it along with a self-addressed stamped envelope to get your money back.) Newegg used to be great. These days they're the textbook definition of a company that's forgotten the consumer.

Rush Process is expensive for what you get (1)

green pizza (159161) | more than 8 years ago | (#14722694)

Rush Processing is only handy if you order late in the day or if you're ordering on a very busy day. Otherwise they usually get your order packaged up that same day. $3 is a little much in my opinion. In the 1992 - 2000 glory days of catalogs like MicroWarehouse/MacWarehouse, PCMall, etc, you could place your order by 2AM and have it delivered by Airborne/DHL that same day by 10AM. Shipping usually cost $3 for the entire order, no matter how much you ordered.

international (1)

hjf (703092) | more than 8 years ago | (#14722441)

And, of course, loyal to their 180,000 square feet (with a comma for thousands and the imperial system), they do not sell overseas, neither the contest is open for non-americans.

Fuck newegg too.

Re:international (2, Informative)

Daxster (854610) | more than 8 years ago | (#14722476)

Aye, they can't even ship it continental either, ie..Canada.
Fuck 'em indeed.

Re:international (0)

Anonymous Coward | more than 8 years ago | (#14722524)

They were SUPPOSED to have opened newegg.ca as Newegg Canada, but that was months ago. Has anyone heard about it since? Canadian companies don't try to be very competetive and need a shake-up or two.

Re:international (1)

SleepyHappyDoc (813919) | more than 8 years ago | (#14722613)

Aye, they can't even ship it continental either, ie..Canada.

You know, someone in the US could probably make a bit of money re-shipping stuff from newegg to Canadians who want to buy from there, but can't. Some of the prices on there are good enough that an extra $10 or so to have someone else ship it to me up here would be worth it.

Sure, I could always get a friend to do it for me, but that's never as convenient as a business, that would be accessible more easily.

international-Drugs. (0)

Anonymous Coward | more than 8 years ago | (#14722665)

"Sure, I could always get a friend to do it for me, but that's never as convenient as a business, that would be accessible more easily."

You mean like the way some online pharmacies ship Canadian drugs to the US?

Re:international (0)

Anonymous Coward | more than 8 years ago | (#14722585)

Bitch bitch whine whine you know you're just jealous

i dunno (1)

brendgard (954622) | more than 8 years ago | (#14722446)

I dunno, as somebody who gets paid to help businesses, I'm not so sure this should be posted under advertising, maybe wishes come true. Oh for a chance to really get a good in depth look at their back office operations. Ya never know when you'ld learn something new you could use. Though, one can't blame them if they are taking advantage of it for some advertising lol.

I hope anandtech picked up some servers (0)

Anonymous Coward | more than 8 years ago | (#14722447)

cause i suspect their boxes are gonna get slashdotted soon. it's like a geeks wet dream, pictures of a warehouse full of parts :O

Re:I hope anandtech picked up some servers (1)

wolrahnaes (632574) | more than 8 years ago | (#14722748)

Well, their IT computing section has plenty of details on the entire Anandtech architecture, from hardware [anandtech.com] to software [anandtech.com] , so you check it out and take a guess how well it will handle the load.....

Anandtech is quite large, so I'm sure they can take the Slashdot load just fine.

Return Dept? (1)

garrett714 (841216) | more than 8 years ago | (#14722452)

Why don't they show pictures of the return department and how it functions? Surely they must have some advanced way of handling the amounts of returns they get. My friend recently bought all the parts for his computer on New Egg. They had advertised a power supply as having dual 12v rails and it only had one when he got it. The DVD burner they sent him was DOA. These are minor issues that plague all vendors of IT equipment, however New Egg claims to provide such great quality for that extra couple dollars you spend. I guess I'm just not seeing the inherent value. What I must add is that New Egg has been known to have one of the best return policies anywhere, this is why I want to see how their return system works!

Bloat Free Article (1)

Gamzarme (799219) | more than 8 years ago | (#14722453)

Here is the <a href="http://www.anandtech.com/printarticle.aspx?i =2694" title="Ad Free Article.">bloat free article</a>, without the ads and extra addage.

Have you not heard of the "Preview" button? (0)

Anonymous Coward | more than 8 years ago | (#14722641)

Here's the linkified link (posted using "Plain Old Text"): bloat free article [anandtech.com]

Newegg is pretty damn good. (0)

Anonymous Coward | more than 8 years ago | (#14722458)

Of course, with all the approving posts so far this'll pretty much be another football field worth of astroturfing, but I've been impressed in my dealings with them.

I'm currently participating in a PC Building class (hey, I figured I could at least get a nice PC out of my soon-to-be-crippling college loans), and we ordered nearly $10,000 in parts for everyone's machines. Everything arrived ahead of time, and the only broken items were the front doors on 2 of the antec cases we ordered (and those cases were known to have shitty doors. Great cases otherwise).

We did have to go around with their billing department a bit though since I guess they take a very hard look at orders as large as ours. They thought we were committing credit card fraud or something.

Re:Newegg is pretty damn good. (1)

MaineCoon (12585) | more than 8 years ago | (#14722739)

They apparently won't ship to a different address than the billing address, or another address registered with the credit card company (or so I've been told).

They also apparently hold large orders an extra day if you are a new customer (they did this with me, I ordered $1800 worth of components for my new computer in one big order). I've been told by others that Newegg did the same on the first large order, but that after that, they don't hesitate.

NewEgg with Old York inside (3, Informative)

layer3switch (783864) | more than 8 years ago | (#14722463)

Still no USPS shippment. I still haven't figured out why NewEgg isn't offerring USPS shippment as an option. Surely they say, "Free Shipping" as some kind of marketing term, but we all know that's not entirely true. In my experience with USPS, especially Priority Mail and light weight shippment below 5 lbs, it's been cheaper, reliable, and no hassle; beating out on FedEx and UPS.

Or maybe it's just me having bad experience with UPS and FedEx delivery.

Re:NewEgg with Old York inside (2)

littlerubberfeet (453565) | more than 8 years ago | (#14722593)

Er, not entirely correct. They offer APO/FPO shipping, which starts as a USPS function...But yeah, it would be nice to have civilian USPS, especially given that some of us prefer to use P.O. Boxes for everything...mail forwarding and all.

People give the USPS a bad rap, but it really is just as good as UPS/Fedex/DHL. USPS will track packages just like the big guys. Hell, in some rural areas, USPS and other carriers will pool deliveries.

Re:NewEgg with Old York inside (1)

ap0 (587424) | more than 8 years ago | (#14722675)

USPS loses money on Priority Mail which is why they wouldn't want to do truckloads of it. UPS and FedEx don't (at least not as much). Besides that, UPS and FedEx DO have more reliable tracking, guaranteed delivery times, better customer service, etc. They also give huge rate cuts to bulk shippers. I work at a UPS hub, where Onlineshoes.com and Nintendo come through, and have looked at some of their invoices -- they pay a fraction of regular shipping costs per item.

Re:NewEgg with Old York inside (1)

ksheff (2406) | more than 8 years ago | (#14722768)

the USPS is one of those bulk shippers - $6.3 billion [usps.com] over 7 years. Priority Mail is sent via FedEx [postalproject.com]

Re:NewEgg with Old York inside (0)

Anonymous Coward | more than 8 years ago | (#14722712)

I've learned never to ship anything fragile with UPS, though otherwise they get the job done. Do the pay their folks per package thrown or what? I've never had a problem with Fedex, except for a driver leaving valable "signature required" packages on my porch without even knocking - I was home, heard him pull up and watched him do it. Next time I might have to say I never got it.

USPS, especially priority mail, is very underrated. Priority has always been cheap, fast and perfectly reliable for me. I use it as much as possible. The base rates are good and the flat-rate boxes are nice for heavy items if they aren't too big.

BATTLE STATIONS! (-1, Offtopic)

sd_diamond (839492) | more than 8 years ago | (#14722467)

Captain, we've got something on sonar. Looks like a submarine [paulgraham.com] .

Return policy (5, Interesting)

st3v (805783) | more than 8 years ago | (#14722473)

Newegg's Return Policy stinks. They charge 15% restocking fees, and if you get a defective item, you have to pay return shipping. They are a big enough company to afford not charging restocking fees. I try not to purchase from Newegg whenever possible. They are not a good deal anymore anyways.

Return policy-NEC (0)

Anonymous Coward | more than 8 years ago | (#14722532)

"They charge 15% restocking fees, and if you get a defective item, you have to pay return shipping."

A lot of companies are like that. Mot just Newegg. I had to pay shipping on my NEC monitor for example, and you should have heard what they were going to charge me for an empty carboard box with packing foam, untill I proved that it was under warrenty. Same with my IBM Deathstars.

Re:Return policy /biased reviews (1, Interesting)

Anonymous Coward | more than 8 years ago | (#14722535)

Yes! and: Don't trust their user reviews; I complained that I was misled, and got this back: " Regarding the reviews of the products, please note, however, that customer reviews are used at the discretion of Newegg as a marketing device for positive and constructive ways to share the benefit of a product. It is not used as a source for negative commentary as we cannot endorse the validity of any negative comment. Therefore, Newegg is moderated to remove any unproven biased negative comments. " but of course they didn't post this at the top of the review pages. So I thought it was just all glowing, not really a piece of crap, like it turned out to be; and yes I also lost the restock fee and postage too.

Re:Return policy (1)

davidesh (316537) | more than 8 years ago | (#14722580)

I just returned a motherboard to them and I was not charged a restocking fee.

Re:Return policy (2, Interesting)

wolrahnaes (632574) | more than 8 years ago | (#14722773)

Are you ordering the wrong part enough that restocking fees are a major issue? Seriously, the only time you should be returning something is when it's damaged, otherwise it's your fault and the company is free to charge a restocking fee.

As for returns, just call them up and bitch, you'll get the return shipping credited to your account. Most motherboards have a note on them saying they're warranted through the manufacturer only, but I've still had them accept returns on two defective boards and even immediately ship out the replacement before I had shipped the bad board back (granted, they had my credit card number already, so it wasn't a real risk to them).

As an internet business, doing real phone support costs them enough that they will generally do anything within reason to get you to stop calling them, which generally means agreeing to your demands of a return equivalent to at a B&M store.

Good article (2, Insightful)

jigjigga (903943) | more than 8 years ago | (#14722504)

As most of us have order computer hardware online, it isn't difficult to find a store that sucks. Newegg has been a gem among shady, poorly supported, and otherwise lacking stores. To see how this organization works and makes what they do happen is not only an interesting read as a customer of newegg but as a nerd who wants to know how they do this stuff!

new egg employees (0, Funny)

Anonymous Coward | more than 8 years ago | (#14722510)

Click on the picture with all the employees. Wow, that's a lot of Asians.

Ok, but why can't they ship same day? (0, Flamebait)

bwave (871010) | more than 8 years ago | (#14722528)

You'd thinking with that hardware and those warehouses they could ship items out in a timely fashion. As a last resort I have ordered several times from them, and you have no clue what day they will actually ship product. They drop ship alot of items, say from Ingram Micro or what have you, but don't even pick the closest warehouse. I can order from alot of other companies, for less money, and they ship out the same day I order. I know from what warehouse, I know what day it arrives. The $2.99 express fee is bogus. They use smoke and mirrors, make the whole process seem magical. Just ship the d*mn product! That's all we ask. Many times, even if an item is "in stock" it really isn't, I don't want to backorder an item, I can do that from a dozen different places, I'm ordering because I need the product! Don't even get me started on their lame search, unless you google the item, and search for the exact manufacturer part # forget about finding a decent result. Thank goodness I've never had to return a product, I can only imagine how much of a hassle that would be if it's this hard to buy a product.

Not representative of most people's experience (0)

Anonymous Coward | more than 8 years ago | (#14722605)

At least, I don't think so.

I personally do most of my shopping at NewEgg (occasionally ZipZoomFly or, in a pinch, Best Buy if I need something from a brick and mortar store), and so does just about everybody I know that needs computer hardware. We're in Arizona - I've personally always gotten my shipment from their CA warehouse, regardless of the item ordered, and I have a tracking number within 24 hours.

And everybody I know gets their items in 3 days. Consistently.

Maybe it's just the location, but we've had nothing but good service and shipping times on orders.

And I've never had a backorder on anything I've ordered that was listen "In Stock." Sorry about your bad luck, though.

Re:Not representative of most people's experience (1)

bwave (871010) | more than 8 years ago | (#14722741)

That's the problem, most of the time they drop ship from California, I'm in Maryland. There are local warehouses in PA or NJ for all major distributors they use. If out of stock there, then IL or IN is only 2 days away, GA/FL 3 days. But CA buy UPS is either 4 or 5 days, Fedex is 5 or 6 days. Not to mention, they will ship 1 or 2 days after you place order.

Re:Not representative of most people's experience (1)

nmos (25822) | more than 8 years ago | (#14722776)

But CA buy UPS is either 4 or 5 days, Fedex is 5 or 6 days.

But they don't even offer UPS Ground. Their bottom end shipping option is UPS 3 Day. If your packages are taking longer than that you really should complain and get your shipping fees refunded.

Re:Ok, but why can't they ship same day? (1)

nmos (25822) | more than 8 years ago | (#14722722)

Are you sure you're talking about Newegg? I probably bought $10,000 worth of stuff from them last year and have NEVER seen them claim an item was in stock when it really wasn't. Also every order has gone out either the same day or the next day. You're right about the warehouse issue, probably 80% of my orders come from the closest warehouse (typically 1 - 2 day delivery) but the rest can come from all over. Given that their basic shipping is a 3 day service though it's not nearly as big of a deal as it would be if they were shipping via UPS Ground.

Depends on when you order (1)

green pizza (159161) | more than 8 years ago | (#14722736)

If I place my order early in the morning, it almost always gets shipped that same day. The longest it ever took NewEgg to get my order to me was 5 business days.

2001 (1, Redundant)

fm6 (162816) | more than 8 years ago | (#14722529)

You can tell the age of internet companies by their names. All the ones started after the good domain names were taken have strange names like "Newegg".

Re:2001 (0)

Anonymous Coward | more than 8 years ago | (#14722542)

Riiigggghhtt... Amazon.com. eBay.com. Yahoo.com.

Newegg will not do business with our school... (2, Interesting)

bariswheel (854806) | more than 8 years ago | (#14722554)

Ok now that I have your attention, I would like to point that although I can purchase from Newegg using my credit card for our school (which I will be forced to do unfortunately), Newegg will not accept PO's from our University, UC Santa Barbara. I love newegg and buy plenty of equipment from them, for myself. However, they are sitting on a goldmine and I am forced to do business with the likes of CDWG, Zones, and Tigerdirect because of their policy of not accepting PO's from Universities. I've called them a few times and told them to escalate this issue and address it to their management. They told me to go through a convoluted process, and obviously other people have come to this crossroads, so management never sees this issue come up, mainly because no one really goes through the process. If the Tier 1 customer service cared enough they should escalate this issue to their management, but unfortunately I haven't been able to talk to any management. Very fishy. So after all my b+'ing, I still do business with them personally, nothing really beats Newegg.

Re:Newegg will not do business with our school... (3, Interesting)

Anonymous Coward | more than 8 years ago | (#14722650)

You want to know the reason why they don't accept POs from schools? They're a major fricking pain in the ass to deal with, you don't get money right away, thirdly and most importantly, they're a major freaking pain in the ass to deal with.

I worked for a university, and I was was tasked with purchasing lots of tools when it was decided we needed to upgrade. I bought up over $350,000 dollars of welders and supplies, metal working equipment, machine tools (including a good sized 3 axis CNC mill, a small 5 axis mill ,a couple small CNC lathes) and basically everything a bunch of engineering students need for their various projects... Basically, everyone thought it would be awesome if we could almost built an entire small turbine engine in house... So, yeah, that's what i went after.. Aside from some precision grinding, and some bearings, etc, it was certianly feasible.

Two months later, when all of this stuff is going strong and we need consumables, I couldn't get anything from anywhere I dealt with previously. The university lost $200,000 worth of POs from various companies, and they companies didn't complain loudly, because quite frankly, we were a drop in the bucket compared to what they were used to. I'm sure the shit would have really hit the fan later... But I had enough of that position anyhow, and this was the last straw.

What I'm saying is that even though you might not have a hard time internally within your school, some companies take a very harsh stance when you go to purchase anything from them, simply because they have had hard times.

Agreed (1)

$random_var (919061) | more than 8 years ago | (#14722730)

Agreed. When I worked for a university, the only company that accepted POs from us were the laboratory supply companies that surely get a large portion of their income from the academic market.

University POs are disastrous; the average processing time was about a month and sometimes they never got paid at all.

Advertorial suffering (0, Flamebait)

Animats (122034) | more than 8 years ago | (#14722573)

Aargh. It seldom gets more annoying than this. First, it's a puff piece for a vendor. Second, it's on one of those stupid "review" sites with ads at top, bottom, left, and right, and a small amount of content per page. Third, the images are on a really slow server. Fourth, the description is by someone who isn't familiar with fulfilment operations, so they don't offer any insight into how this compares with competing operations.

And it isn't even a very interesting fulfilment operation. It's a manual bin picking operation using conveyors, with computers telling the people what to do. This is relatively standard; nothing exciting here.

Yes, they have a trash compactor for recycling cardboard. Like every big box-break operation in the developed world.

Re:Advertorial suffering (1)

prockcore (543967) | more than 8 years ago | (#14722774)

It's a manual bin picking operation using conveyors, with computers telling the people what to do. This is relatively standard; nothing exciting here.

Yes, yes. You've seen it all. Nothing new under the sun. Please. I thought the article was interesting because I have never worked, nor been inside, a warehousing plant.

I work for a newspaper. Our press is a giant 2 story machine that is pretty much identical to every press in every city in the US. That doesn't prevent an endless parade of tours and kids that come to see it in action.

Newegg kicks ass! (1)

nxs212 (303580) | more than 8 years ago | (#14722581)

I almost always buy from Newegg and recommend to others.
Even though their prices are slightly higher, I know they will take any doa hardware back without asking too many questions or making me jump through hoops.
One time I ordered a refurb aopen cube pc from newegg(for $100 less than new) and it arrived with everything included, manuals, cables, etc. No scratches on the case or any broken or missing parts.
A month later I ordered a "NEW" barebones system from Tiger Direct and it came banged up so bad that I couldn't even close the case properly. Cardboard box was not damaged so it was definitely broken when they shipped it. Never got my rebate either.
The moral of the story is stick with the good guys, even if it costs $3 or $5 more per item. The last thing you want to do is get stuck with a lemon pc accessory because you get "sorry, we can't take it back once it's opened, try the manufacturer" from some crappy dealer or "that will be 15% restocking fee"
or "contact UPS, they probably broke it during shipping"

Oh, they are giving away several AMD X2 4800 CPUs (RTFA, click on TFL)
so put your email address and wait. (don't use your work address since they will send some spam - newegg newsletter)

Positive Experiences All Around (2, Insightful)

PrimeWaveZ (513534) | more than 8 years ago | (#14722591)

I've been spending money at NewEgg for about two years, though I've been aware of them and lurked for a while before then. I've been quite happy with all of my purchases, and except for one instance on a DVD-R drive RMA (at 8 or 10 months old) the process for everything, including returns, has been pretty fast. Not all of my stuff ships same-day, but except in the most extreme circumstances, that's OK. Many of the things do ship same day, and living in Orange County, CA, the La Puente warehouse is next day by ground.

I've had great experiences with their customer service, I'm impressed by their prices overall. My only complaint is that shipping is sometimes a bit steep considering I'm less than 75 miles from their warehouse and I also have to pay California sales tax. Overall though, I still give them my business after 2 years. Not a bad deal.

I love NewEgg, but in-laws had bad experience (1)

MaineCoon (12585) | more than 8 years ago | (#14722614)

While I use and recommend Newegg, my wife's parents ordered a printer and a digital camera.

The printer didn't work, but Canon resolved that. The box that the camera was empty... claimed it weighed several pounds, but it was nothing but peanuts. The first call to Newegg seemed like they would actually ship the camera, but it took 3 more calls for them to actually do so. I was pretty shocked about that.

They won't buy from Newegg again... which is too bad, I still consider them to be one of the best online retailers. This means they'll instead drive over to Best Buy...

Isn't Mwave.com better? (0, Offtopic)

putko (753330) | more than 8 years ago | (#14722615)

Isn't mwave.com better than Newegg?

I thought their customer service was supposed to be better.

Re:Isn't Mwave.com better? (1)

beast6228 (472737) | more than 8 years ago | (#14722715)

For those who remember Newegg when they first started, Newegg copied everything Mwave did at the time, even Newegg's website looked almost exactly like Mwave's, Then slowly, Newegg become the monster it has grown to today, leaving Mwave a little behind. Not by much though.

And by the way, Mwave has been around since the middle 90's that I know of. In fact, I made my very first internet purchase with them. Always top notch service from. (both of them)

There is another monster growing too, ZipZoomFly. I've never ordered from them, but I heard they are pretty awsome. Look Out!

they dont got nuthin' on..... (2, Informative)

Anonymous Coward | more than 8 years ago | (#14722631)

DigiKey.
Check out the Thief River Falls plant sometime. Whoa.

mod parent up (2, Interesting)

green pizza (159161) | more than 8 years ago | (#14722728)

DigiKey [digikey.com] is located in tiny Thief River Falls, Minnesota... about half an hour from Grand Forks, North Dakota and about 90 minutes from Fargo, North Dakota. They have a huge complex of warehouses full of electronic components. Every chip, diode, resistor, LED, sensor, etc etc etc you could ever imagine. Their print catalog is two inches thick and doesn't even contain half of their inventory! I've never toured their warehouse, but based on their inventory and quick shipping I can only imagine how awesome it must be!!

What ever happened to 2AM, $3 overnight shipping?? (5, Interesting)

green pizza (159161) | more than 8 years ago | (#14722656)

Believe it or not, this isn't a troll. From about 1993 - 1999 there were dozens of printed catalogs that offered overnight (technically same-day) shipping if you placed your order before 2AM EST. For $3 your package was delivered by Airborne Express (now DHL) by 10AM that SAME DAY! I ordered many computer parts over the phone around the 2AM deadline and had them in my hand just 8 hours later. And this was to Fargo, North Dakota. Amazing IMHO.

The first time I took advantage of this crazy fast, crazy cheap shipping was when I bought my Newton PDA in 1994. I remember placing my order around 11 PM and paying with the Newton the next morning just after breakfast. I think I ordered it from MicroWarehouse/MacWarehouse. This was many years before the dot-com boom, so I'm still a little baffled at how so many companies were able to update print 200+ page catalogs every month and still offer such awesome shipping.

As far as I can tell, this all ended around the time of the dot com bubble burst. What I don't really understand is why. Or why they didn't just up the shipping charge to $6 or downgrade to overnight instead of overnight-priority shipping. 4 PM the next day isn't a whole lot worse than 10 AM the next day.

I miss those days. Now it seems like NewEgg's 1 - 2 day order turnaround + freeish FedEx 3-day shpping is the best I can find in the same price ballpark. I can usually order from NewEgg on a Monday morning, opt for the Free to $5 shipping, and have the item by Thursday afternoon. Good but still nothing like the 8 hour delivery I experienced for most of the 1990s. Now with online ordering, better tracking/sorting, and greater package delivery competition you would think that $3 - $7 overnight shipping would still be a possibility. Or at the very least, give me back the 2AM cutoff again instead of this 5PM sillyness.

PLAYING with the Newton the next morning (1)

green pizza (159161) | more than 8 years ago | (#14722721)

That was a typo, I was *playing* with the Newton the next morning.

Re:What ever happened to 2AM, $3 overnight shippin (1)

beast6228 (472737) | more than 8 years ago | (#14722764)

I remember back in the early 90's when you could order something and pay for it c.o.d. (cash) and not have to wait all day long to get your item delivered, they would almost always get to your house at the same time, hell I even made friends with one of the UPS drivers because he was always coming to my house often. Those days are gone because of the internet, everyone and their uncle orders stuff on the internet these days, the amount of items being shipped has probably grown about 1000x times since then. That's why....too many people now.... bad for us, good for the delivery companies. Newegg still ships to me just as fast as they always have, but I don't care for UPS that much, too many damaged shipment. In fact, last week I ordered a new cable modem. I knew it was coming that day, I waited for it. I heard the UPS driver pull up to the house, I went to the door and stood there and waited for him to knock.....well, he didn't knock and he just left the box sitting on my porch. I live on a busy street, anyone could come by and rip the package off. ..it kinda ticks me off that I pay good money to have something shipped and they can't even knock or leave it in the door. Now fedex on the other hand is what I call a real delivery service. They knock on your door, they make you sign for the package and if you aren't there they come back the next day. They even say "have a nice day!" UPS never does that, and trust me, I've dealt with UPS many thousands of time, at my residence and at work. It's amazing how they have went downhill.

Getting back to UPS and Newegg, if you want the cheaper shipping at newegg, you gotta go UPS, otherwise Fedex costs a little more.

Don't like Newegg? Try Mwave.com out, they've been in business alot longer than Newegg and they use fedex. Prices are about the same and sometimes cheaper than Newegg.

Egghead? (0)

Anonymous Coward | more than 8 years ago | (#14722676)

Did anyone else ever just assume that NewEgg was kind of the reincarnation of our once dearly beloved EggHead (BEFORE amazon bought them and ruined them?)

I mean, look at the similarities: great prices, fast shipping, super service, free crap (t-shirts, pens...) At one point, the site even felt very much like the once-glorious EggHead!

Just a thought...didn't know if I was alone in that!

is it just me ... (0)

Anonymous Coward | more than 8 years ago | (#14722695)

or does this article remind you of the episode where the simpsons visted the box factory ?

No UPS information (1)

fluxrad (125130) | more than 8 years ago | (#14722700)

Where's the picture of the UPS goons handing stacks of hundreds over to Newegg VP's?

If you've been a custome of Newegg for more than six months, you know what I'm talking about.

lost orders (1)

Ravenrage (739755) | more than 8 years ago | (#14722707)

my mother ordered a dvd burner from newegg on 1-18-06. she called on 1-23-06.customer service said that they did not recieve the order yet the already withdrew the money.it says 3 day shipping, perhaps they ment 300 days? lol seriously i have dealt with newegg more than a few times they have a track record similar to dells *shivers*. if i want/need a part now i look for a local store at least i don't have to worry about an order being lost.

How well does that sort of thing age? (1)

Kris_J (10111) | more than 8 years ago | (#14722716)

Does anyone have experience with any of these cool order fulfilment technologies? 10-15 years down the track, how are they? Still the same? Breaking down frequently? Replaced at significant cost? Upgraded gracefully?

I find that most really cool technology that actually gets deployed in a working environment either works and thus never gets upgraded, or sucks and has to be completely replaced.

All smiles until there's an issue. (1)

batmanuel (535555) | more than 8 years ago | (#14722735)

Just because they shipped what you ordered and your purchased items work as designed doesn't make a great retailer. I don't understand these NewEgg fanatic boosters ("I ordered 'x', it arrived and it works! NewEgg is FANTASTIC!!!"). Geez. The best way to evaluate an on-line retailer is to see how they react when there is a problem with your order. This is particularly true when the fault is purely with the retailer.

I've had some experience with NewEgg in this area and frankly NewEgg stinks. You can find better customer policies elsewhere at similar prices.

A different anecdotal experience (1)

xenocide2 (231786) | more than 8 years ago | (#14722763)

A year ago I ordered serveral parts, including a case from newegg. I didn't really think about it much, but cases might not be the best thing to ship via your average UPS or Fedex etc. Anyways it arrives and the front panel is busted up. Cracked and inoperable. I read the website's procedure, followed the directions and eventually called newegg's help line. I inform them of this and rather than have me ship the whole thing back at my cost, they take my word for it and send me a new panel. Three days later I have a new panel and a working computer. I still won't be ordering cases online anymore, but that's just because its hard to really evaluate a case design from a webpage.

So has Newegg fallen to new lows since I ordered? Am I lying or simply remembering something false? Or perhaps taking a single anecdote as a trend is simply bad logic.
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