Newegg Prepares for Holidays

Newegg.com’s Bernard Luthi shows off some of the new branding, which is part of a recent campaign the company began in May.

A Newegg.com worker prepares the extra boxes needed for the holiday rush. Newegg.com typically ships 45,000 boxes a day; that jumps to 165,000 during Black Friday and other holiday promotions.

A worker stacks boxes for the holiday crunch.

Warehouse manager Kevin Lee works the “pick to light” order system.

New marketing strategies broadens customer base and sales

Backed by a new marketing strategy that has broadened its sales of consumer electronics and other products, Newegg.com is busy gearing up for what the company thinks will be its best holiday season yet.

During a tour this week of Newegg.com’s warehouse and shipping facility in Edison, N.J., Bernard Luthi, the company’s senior vice president, discussed the company’s “Black November” promotions, expanding its customer base and product lines and, of course, preparing for the holiday selling season, which accounts for about 30 percent of the company’s annual sales.

For the second straight year, Newegg.com has rolled out its Black November promotions, using it to steer consumers online and help them avoid “the crowds, chaos and pandemonium of ‘Mall Madness.’” Beginning November 1, Newegg.com has offered daily deals on specific categories, which lead up to its official “Black Friday” events that start at about noon on Wednesday, November 23, and culminates with unique offers and special deals at midnight on Thanksgiving. Those will continue through Black Friday, stretch into Cyber Monday, and peak on Encore Tuesday.

“We saw that Tuesday remained strong, so we created another set of deals that kept orders high,” Luthi said, as he walked by the rollers and conveyor belts that snake through the warehouse.

From November 23 until December 24, Newegg.com will run its Iron Egg Guarantee program. All products that feature the Iron Egg icon will include an extended return policy of 60 days (extended from the usual 30 days) and a price guarantee service, in which Newegg.com will refund the difference if a customer finds the same product from another major e-tailer during the Iron Egg promotion period.

This year, Luthi, like others in the industry, expects more consumers to spend part of Thanksgiving online in search of deals. Newegg.com notices that more core customers will log onto the site shortly before midnight on Thanksgiving Day, start filling their baskets and then wait for prices changes to hit. Cyber Monday and Encore Tuesday, Luthi said, tend to generate as many sales as Black Friday.

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