Inside Newegg: They give us a Tour and you a Prize
by Anand Lal Shimpi on February 14, 2006 3:31 PM EST- Posted in
- IT Computing
Shipping and the UPS/FedEx Debate
With the box taped your order is now on the last leg of its trip through Newegg's warehouse as it heads down the final set of rolling conveyers.
The metal crates and employees that you see below are all for Army Post Office and Fleet Post Office (APO/FPO) shipments to the US Military. "Shipping to the US Military is requires extensive paperwork in comparison to our normal shipping operations," says Howard Tong, Vice President of Newegg.com. "Not many companies provide this service but we feel it's worth the extra effort to support our troops and our nation."
With your box packed, labeled and taped up it's off to shipping and it's in Newegg's shipping that most of the recent controversy has been about. Newegg's default shipping is through UPS, although you can pay extra for FedEx. Newegg used to be a FedEx shop by default, however recently FedEx significantly raised their rates, which Newegg passes directly onto their customers. Newegg claims that the rate hike was an attempt by FedEx to discourage customers from shipping via 3-day air, which loses money for FedEx, and instead choose FedEx ground which is profitable.
However FedEx Ground isn't as good as UPS ground, so the end result is frustrated FedEx 3-day air customers that have to pay more, or customers forced out of pricing to go with UPS, which hasn't always had the best track record. In response to complaints about UPS VP Tong says, "We're serious about providing our customers with the best service. We've taken the criticisms about UPS constructively and have greatly improved the situation. However we're always striving for perfection and always welcome further feedback."
With the truck loaded, it's off to your delivery address. As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.
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jims23211 - Tuesday, February 14, 2006 - link
As a FedEx employee, the info that NewEgg supplied you about a price hike was bogus. Fact is NewEgg received a substantial discount, but UPS decided to undercut FedEx, so NewEgg renegoitated their contract on a less volume. Last I heard from our Corporate Sales rep, Newegg finally realized their mistake (a huge amount of damage returns and missed/lost deliveries by UPS) and is trying to get their deal back with FedEx, good luck...Jim
NullSubroutine - Wednesday, February 15, 2006 - link
aww poor fed ex, do they want a sucker? im sure its not just one sided to fex being innocent.yacoub - Wednesday, February 15, 2006 - link
Considering FedEx is the better shipper to use most of the time...hergieburbur - Tuesday, February 14, 2006 - link
I agree, I have shopped Newegg for years, and I never once had any problem receiving my order extremely quickly until they switched to UPS. First time I ordered that was sent UPS took 2-3 days more, held up by shipping. Personally, I miss Fedex Ground.overclockingoodness - Tuesday, February 14, 2006 - link
I'm guessing that's based on Newegg's dealings with UPS. A shipping company better be competent if it wants to handle 25K orders a day. I guess Newegg has created a benchmark for making sure shipping companies are doing their job well (so has Amazon.com).jfunk - Tuesday, February 14, 2006 - link
I've always loved Newegg since the beginning. Almost always within a couple bucks of the cheapest price and service has been great the few times I've had to contact them.I just hope not too many of my shipments start comming out of the new TN warehouse, it takes longer to get to me than the stuff from NJ.
overclockingoodness - Tuesday, February 14, 2006 - link
Yes, that's Anand in the picture. :)AndrewChang - Tuesday, February 14, 2006 - link
Hey Anand, that wouldn't happen to be you by any chance would it? Haha, Goodstuff...PClark99 - Tuesday, February 14, 2006 - link
the link to enter the contest is not working for me.DigitalFreak - Tuesday, February 14, 2006 - link
Leave the contest link broken! All the n00bs won't be able to figure out how to re-construct the correct URL and won't be able to enter! More chances for the rest of us.