Inside Newegg NJ: A New Warehouse and Another Contest
by Anand Lal Shimpi on May 20, 2008 12:00 PM EST- Posted in
- Trade Shows
For years I'd been visiting Newegg's facilities and I'd always commented, especially in the early days, on how I'd really wanted to take pictures of the facilities and do an article on them. Back when Newegg was much younger, a good portion of its success was due to the efficiencies of its warehouse in filling orders. As many companies in our industry tend to be, Newegg was quite shy and wouldn't let me so much as take a picture the first couple of times I visited them.
Finally in 2006, they opened up to the idea of documenting one of their warehouses. Armed with camera and notepad I toured Newegg's facilitiy in Los Angeles just around the time that it opened its first warehouse servicing the east coast in Tennessee. Fast forward to 2008 and Newegg had just recently unveiled its second east coast facility, this time in New Jersey.
With revenues well over $1B a year, Newegg is no longer the seemingly small operation it once was and the company is much less shy. While the brains behind the original warehouse design has since left the company, the New Jersey facility is an improved, more up-to-date version of what I saw back in LA in 2006.
There are far fewer actual people at the warehouse now thanks to even further automation and, yes, the goal is still to get your order to you within two days of leaving the facility regardless of shipping method. That's actually the whole purpose of building the NJ facility, so that customers on the east coast can actually get their orders within that two day target - even with ground shipping.
For those of you who remember the first article, not much has changed - everything i just a lot newer (and the warehouse is a lot quieter too). I told Newegg that if we were going to do another tour we had to do it exactly like last time, which meant that they needed to give away something special to AnandTech readers. The first time Newegg let me tour their facilities and setup a giveaway it was a very kind gesture, now it has become tradition. I'll get to exactly what you get to win and how in a little bit.
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Kendokan - Sunday, May 25, 2008 - link
With their business model, they're smart not to take corporate POs as payment. Most companies stretch the payment terms like crazy. Net 30? You might get your money in 60 days. Net 60? Try 90. It's hell on cash flow.Jaguar36 - Tuesday, May 20, 2008 - link
Newegg has shipped stuff from NJ for years, from Edison NJ to be specific. I first started buying from them because I could get stuff shipped ground and it would show up the next day. Of course now they have there '3-day' shipping which takes 3-days even when its only going 50 miles, and costs 50% more!Basilisk - Wednesday, May 21, 2008 - link
Yes, for years NJ has had the quick deliver and the NJ taxes directly added to the bill. [Of course, we all add up those untaxed, out-of-state purchases and report them on our NJ-1040's, right?!]Over the years, they've cut their delivery time from two days to one; or perhaps I'm just ordering earlier in the day? Anyway, yesterday's video-card order at 1PM is en route today... but it's STILL NOT HERE as of 10am! :P LOL
gigahertz20 - Tuesday, May 20, 2008 - link
Seems like a very efficient system, I've always received my order within 2 days living here in State College, PA. Good prices, fast shipping, an easy to use website that has tons of search options, and also allowing users to leave reviews of the products they buy is what makes Newegg #1 in my book.PCHAngover - Wednesday, May 21, 2008 - link
Yep I always get mine within 2 days. Usually it's only a day because newegg is a Ninja. If anything, I blame the commons staffing if I don't get it in time. ;)gipper - Tuesday, May 20, 2008 - link
It seems to have slowed down lately for me. I live in STL, MO, and it was about 3 days from ordering. More recently, it's been more like a week.It's still great service, and the prices are unbeatable. I just have to plan a little further ahead these days.
KikassAssassin - Tuesday, May 20, 2008 - link
Strange. I live in Illinois, about 15 minutes from St. Louis, and they always get my orders to me in 2-3 days (usually 2). I've never had to wait anywhere close to a week.BigLan - Tuesday, May 20, 2008 - link
Hopefully I'll be the lucky one!I couldn't help notice the 'slow moving parts' picture at the bottom of page 2. They look like 6800's, and won't be going anywhere for a while as the product is deactivated on the newegg site.