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Newegg – Profile

June 3, 2005

HQ: City of Industry, CA
Founded: 2001
Management: Simon Hsieh was recently promoted from Strategic Officer to CEO. Former CEO Ken Lam was made Vice-Chairman. The Chairman and founder is Fred Chang. Pior to Newegg, CEO Hsieh was VP of sales and marketing at D-Link.
Investors: Bootstrapped.
Business Model: The company sells personal computers, software, components, consumer electronics, and networking/wireless gear via its Web site. It boasts a mind-blowing 400K unique visitors per day who gave Newegg $1B in sales in 2004 and it expects to grow to $1.4B in 2005. The company’s product offerings are really no different than what others offer. The secret sauce is great customer service. Newegg does not outsource support, but hires geeks locally to speak to geeks.
Competitors: TigerDirect, CDW, Outpost/Frys.
Dirt: Newegg expects to open offices in Europe, Canada and Asia and it recently opened offices in Taiwan and China. The company has nailed its market segment in the US but growth abroad is by no means guaranteed as locals might understand their audience better. Still, given Newegg’s success in the US, we doubt they will screw it up. Will the company IPO? Hard to say. Industry margins in distribution are always low and the company does not have investors that it needs to satisfy with a liquidity event.

6 Comments leave one →
  1. June 4, 2006 6:19 pm

    qrtert rete

  2. Merideth Carleton permalink
    June 6, 2006 1:15 pm

    Have you seen this before? It’s a number guessing game: I guessed 88788, and it got it right! Pretty neat.

  3. June 23, 2006 5:41 pm

    Edmonton dominated the Carolina Hurricanes on Saturday night and the 4-0 margin in Game 6 makes it hard to imagine the Oilers not hoisting hockey’s Holy Grail above their heads in less than 48 hours. And it would not come as any shock to see defenseman Chris Pronger, who had another 31-minute night, take the honors for the Conn Smythe Trophy as the playoff MVP.

  4. July 10, 2006 1:48 pm

    akuyhg jlckudhqb mxlf cejltus liodr qfkwpcres ugcenbyj

  5. July 11, 2006 4:49 pm

    How can they be so much cheaper than other places? I know there are places like and that have very close prices but some of their prices are cheaper than direct dealers pay..
    Its crazy.

  6. July 11, 2006 4:51 pm

    Newegg has close to the same prices as and But some of their stuff has to be overstock since they have cheaper than direct disty cost.

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