Newegg
| File:Newegg logo.svg | |
| Company type | Public |
|---|---|
| Industry | |
| Founded | 2001 |
| Founder | Fred Chang |
| Headquarters | , U.S. |
Area served | Worldwide |
Key people | |
| Products | Computer hardware, software, peripherals, gaming, electronics, accessories, DVDs, housewares, appliances, tools, furniture, office products and more |
| Revenue | Increase Template:US$ (2021) |
| Increase Template:US$ (2021) | |
| Increase Template:US$ (2021) | |
| Total assets | Increase Template:US$ (2021) |
| Total equity | Increase Template:US$ (2021) |
Number of employees | 2,205 (December 2021) |
| Parent | Hangzhou New Century Information Technology Co., Ltd. (China) (majority owner) |
| Website | {{URL|example.com|optional display text}}Lua error in Module:EditAtWikidata at line 29: attempt to index field 'wikibase' (a nil value). |
Newegg Commerce, Inc., based in Diamond Bar, California, is a prominent American online retailer focusing on computer components and consumer electronic products. The firm is predominantly owned by Hangzhou Liaison Interactive Information Technology Co., a multinational technology corporation headquartered in China.
Founding and initial development
Established in 2001 by entrepreneur Fred Chang, originally from Taiwan, Newegg was named to represent fresh prospects within the e-commerce sector during a challenging economic climate. In 2004, the company introduced Rosewill, its proprietary brand featuring computing and household items.
By 2005, Newegg's sales approached $1 billion and increased by roughly 30% to $1.3 billion. The company broadened its market presence through the launches of NeweggMall.com and Newegg.ca in 2008, followed by NeweggBusiness.com in 2009. In 2009, Forbes ranked it #234 among America’s Largest Private Companies.
Fred Chang held the positions of chairman and CEO until August 2008 when he relinquished executive duties but stayed on the board and as president of Newegg’s operations in China. Tally Liu succeeded him as CEO.
2009 IPO filing and Marketplace introduction
On September 28, 2009, Newegg Inc submitted an initial public offering application to the U.S. Securities and Exchange Commission, highlighting consistent profitability since inception and $2.1 billion in revenue for 2008. Insight Venture Partners was its largest external investor. The IPO process was led by JP Morgan, Bank of America, Merrill Lynch, and Citi. However, by 2011 Newegg retracted its registration to pursue other financing strategies.
In 2010, Newegg launched the Marketplace platform and surpassed $2.5 billion in annual revenue while employing over 1,500 individuals. That year also saw founder Tally Liu step down as CEO with Fred Chang returning to the role.
Expansion beyond domestic markets
On June 15, 2017, during London Tech Week, Newegg announced plans for international growth targeting Asia Pacific, Europe, Latin America, and the Middle East to serve customers across 50 countries. By November that year, the company had implemented localized payment methods, improved customer support services, and expanded product offerings tailored for global markets.
Acquisition by Liaison Interactive and SPAC Transaction
In 2016, Hangzhou Liaison Interactive, a technology company based in China, secured a controlling interest in Newegg. Subsequently, in 2020, Newegg consented to a merger with Lianlou Smart Limited, a special-purpose acquisition company headquartered in Beijing (NASDAQ: LLIT), with the majority ownership retained by Newegg’s shareholders. This transaction concluded in May 2021, resulting in the public listing of Newegg Commerce, Inc. on the Nasdaq stock exchange under the ticker symbol NEGG.
Service Offerings
In November 2016, Newegg rolled out a new checkout feature enabling customers to collect their orders from more than 2,500 FedEx locations, which included approximately 1,800 retail outlets.
By January 2017, Newegg had formed a partnership with Indiegogo to assist selected crowdfunding projects by providing marketing exposure, sales strategy support, and fulfillment solutions.
In May 2017, the company launched Newegg Logistics to optimize order processing, shipping operations, and returns management for both business-to-consumer and business-to-business e-commerce vendors.
October 2017 marked the introduction of Newegg Now, a weekly livestream program showcasing technology product reviews alongside exclusive limited-time offers.
In February 2019, Newegg initiated an online work program where employees were randomly chosen to perform part-time purchasing tasks.
The direct-to-consumer (D2C) program debuted in May 2020 with the aim of broadening vendor access within the Newegg marketplace.
June 2020 saw the unveiling of the PC Builder tool for custom computer assembly, initially available in North America and subsequently extended worldwide by August 2020.
The Newegg Shuffle initiative was launched in February 2021; this program randomly selects customers to buy high-demand technology items such as graphics processing units and gaming consoles.
Expanding its product categories in May 2021, Newegg entered the automotive parts market by introducing a vehicle-specific navigation system designed to improve product discovery.
In June 2022, Gaming PC Finder was introduced as a personalized tool to help users assess specifications and components for gaming PCs.
July 2022 brought the launch of JustGPU.com, a specialized platform for researching and comparing graphics cards to facilitate informed purchasing decisions.
Beyond retail services, Newegg supports third-party logistics (3PL) clients and other e-commerce enterprises. In April 2020, it established Newegg Staffing, an agency dedicated to supplying labor for logistics, manufacturing, administrative roles, and supply chain functions. By August 2020, staffing operations expanded to cover the Midwest and East Coast regions with new offices located in Indianapolis and Edison. Additionally, in June 2020, Newegg created Newegg Bridge to provide customer service management and social media monitoring solutions tailored for its 3PL partners.
Controversies
In March 2010, Newegg sold approximately 300 counterfeit Intel Core i7-920 processors. Initially described as "demo units," the company later acknowledged these CPUs were fraudulent and severed ties with the supplier involved. Customers affected received replacement products while Intel conducted an investigation into the matter.
During early 2018, Newegg came under scrutiny in Connecticut for failing to collect state sales tax on out-of-state transactions over a three-year period. Lacking physical operations within Connecticut, Newegg opted to supply customer details to the Department of Revenue Services instead of collecting taxes directly. This resulted in customers receiving retroactive tax bills for prior purchases.
In September 2018, Newegg revealed that a data breach had occurred due to malicious code on its servers; this compromise exposed customers’ credit card information during checkout over a period exceeding one month.
A February 2022 viral video by Gamers Nexus criticized Newegg’s Return Merchandise Authorization (RMA) procedures following a dispute involving an unopened motherboard refund. The video spurred similar grievances from other consumers and content creators. In response, Newegg issued an apology and updated its open-box RMA policy accordingly.
Gaming and esports
Newegg has actively supported competitive gaming events for popular titles such as Counter-Strike, Warcraft III, and Rome: Total War. In 2005, the company organized a monthly case modification contest to promote innovative computer customization.
In March 2019, Allied Esports, an esports entertainment firm, designated Newegg as a founding and official e-commerce partner of the HyperX Esports Arena located in Las Vegas. Later that year, in June 2019, Newegg co-hosted the Triple Crown Royale at the same venue, which showcased tournaments for Apex Legends, Fortnite, and PUBG. This event provided an opportunity for amateur gamers to compete against professional players from Counter Logic Gaming (CLG). By January 2020, Newegg broadened its collaboration with CLG by becoming the presenting and official online retail partner for its North American League of Legends Championship Series (LCS) team.
October 2020 marked the relaunch of Newegg’s hardware division ABS (Advanced Battlestations), refocusing its efforts on gaming PCs and fostering the gaming community.
Litigation
On February 10, 2010, Newegg was sued by three former employees who alleged violations of labor laws, excessive work demands on immigrant staff, and unauthorized access to competitors’ systems. The company refuted these accusations, underscoring its adherence to ethical labor standards and legal compliance. Newegg committed to vigorously contesting what it described as unfounded claims.
Patent troll cases
Newegg is noted for its proactive stance against patent trolls. A landmark victory occurred in January 2013 when the Court of Appeals for the Federal Circuit invalidated Soverain Software’s shopping cart patent, referencing prior art from CompuServe’s 1984 Electronic Mall. The Supreme Court subsequently declined Soverain’s request to rehear the matter, effectively concluding the dispute.
In November 2013, Newegg was unsuccessful in a Texas patent infringement case brought by TQP Development concerning SSL and RC4 encryption technologies, despite expert testimony from cryptography pioneers Whitfield Diffie and Ron Rivest. Following extended delays in the case, Newegg filed a petition in July 2015 seeking a judgment to facilitate an appeal. Shortly thereafter, Judge Rodney Gilstrap declared that Newegg did not infringe TQP Development’s patent.
These legal battles demonstrate Newegg’s deliberate strategy to safeguard its business operations and market position against patent litigation challenges.
Awards
Newegg has earned multiple accolades reflecting its industry accomplishments and market presence:
- Computer Shopper Shoppers' Choice Awards: 2003–2011
- Forbes.com Best of the Web
External links
| Ranking and details | Source | Year |
|---|---|---|
| Multichannel Merchant Top 3PL Provider | Multichannel Merchant | 2020, 2021 |
| Featured in Newsweek's America's Best Loyalty Programs | Newsweek | 2021 |
| Placed #6 in Digital Commerce 360 Top 500 – Consumer Electronics Category | Digital Commerce 360 | 2020 |
| Ranked #5 in Newsweek's Best Online Shops – Consumer Electronics | Newsweek | 2020 |
| Positioned #26 in Digital Commerce 360 Top 500 | Digital Commerce 360 | 2020 |
| Listed among Multiorders Most Popular Online Marketplaces | Multiorders | 2019 |
| Ranked #10 in TWICE Top 100 Consumer Electronics Retailers | TWICE | 2019 |
| Recipient of NCSA All-Star Award for Customer Service Organization of the Year – Large Business | National Customer Service Association | 2018 |
| Included in Multichannel Merchant's Top Third-Party Logistics Providers | Multichannel Merchant | 2017, 2018 |
| Ranked #107 in B2B E-Commerce 300 | B2B E-Commerce World | 2017 |
| Ranked #21 in Internet Retailer's Top 100 Consumer Electronics E-retailers | Internet Retailer | 2017 |
| Positioned as the 12th Largest Consumer Electronics Dealer | TWICE / Stevenson Company | 2010 |
| Listed among Top 100 Fastest Growing Private Companies in Los Angeles | Los Angeles Business Journal | 2006, 2007 |
| Ranked as the 18th Largest Consumer Electronics Dealer | TWICE / Stevenson Company | 2007 |
| Placed #234 in Forbes Largest Private Companies in America | Forbes | 2009 |
| Recognized among Top 10 Largest Internet Retailers | Internet Retailer | 2007 |
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