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Newegg’s Latest Expansion Primes Company for Holiday Rush

October 10, 2007 Press Release

Continued growth in sales leads to ramp up of distribution channel



CITY OF INDUSTRY, Calif — Newegg Inc., the world’s largest online-only computer and electronics retailer, opened its second East Coast warehouse recently in anticipation of its busiest holiday rush yet. The 374,000 square-foot warehouse is now Newegg Inc.’s largest and most sophisticated distribution center, equipped to expand Newegg’s famed “lightning-fast shipping” with orders arriving in two business days or less for 90% of the Eastern Seaboard.


“Last year, we had a 40 percent year-over-year increase in sales during the December rush, and we’re expecting an even bigger holiday season this year,” said Bernard Luthi, vice president of merchandising and product marketing, Newegg. “I’m very encouraged by the great success of the new facility’s opening, with performance at the center being higher than expected. It will definitely be able to handle the volume of our upcoming holiday sales, and beyond.”


The new mega facility is not only the largest distribution center under Newegg’s logistics system, it is outfitted with the latest technology to both accommodate the company’s dramatic growth within the greater Northeast U.S. and allow for continued growth. With its facilities now totaling five locations strategically placed across the U.S. and a combined total of over 1 million square feet, Newegg is well-positioned to maintain its customer-beloved practice of shipping 99.9% of all orders within one business day of being placed, even as its rapid expansion continues.


“The partnership with Newegg has seen amazing growth and we are happy to be onboard with them,” said Paul McGuire, vice president of worldwide sales, Corsair. “We know a lot of that success is tied to their top-class service and shipping which people have come to identify with the Newegg name.”


The opening of the new warehouse, while directly benefiting Newegg’s East Coast customer base with faster shipping, also will have the overall effect of shortening shipping time for all customers regardless of location. As a result, 90 percent of all customers will receive their shipments within two days of ordering and 99.9% within three days.


With the holiday season quickly approaching, the faster shipping will be a major plus for shoppers throughout the U.S. who can enjoy the benefit of a few more days to do their last-minute gift shopping. With the more than 87,000 items that Newegg carries, that additional savings in shipping time can be put to good use.

About Newegg

Newegg.com is the world’s second-largest online-only retailer, attracting more than 6 million registered users and earning industry-leading customer service ratings. Founded in 2001, Newegg Inc. posted approximately $1.5 billion in revenue in 2006. “Those who know” — IT professionals, do-it-yourself computer enthusiasts, avid online gamers, students, small-to-midsize businesses, resellers and consumers — consider newegg.com their top choice for computer and IT products and consumer electronics. At its award-winning Web site, www.newegg.com, shoppers can compare a comprehensive selection of the latest high-tech products, view detailed product descriptions, pictures, how-to information and product reviews, and interact with other members of the technology and gaming community. Newegg.com is headquartered in City of Industry, Calif. For more information, visit http://www.newegg.com/.



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