Tech-focused online retailer Newegg has dramatically increased its logistics capabilities during the coronavirus pandemic to help bolster ecommerce performance not only within Newegg but across the ecommerce space.
To help minimize disruption to consumers, Newegg’s third-party logistics (3PL) operation has increased production and made significant hires across the U.S. and, more specifically, within its fulfillment network to offset these challenges.
COVID-19 Pressure on Logistics
The COVID-19 situation has placed unusual pressure on vital supply chains, significantly disrupting product availability to consumers, and lengthening time-to-delivery for customer orders.
For the most part, Newegg and its clients who use Newegg Logistics (the company’s in-house fulfillment network) have avoided these the supply chain failures and stayed ahead of competitors that have struggled to react quickly to these market dynamics.
“Newegg’s in-house fulfillment and logistics capabilities are more important than ever as we strive to maintain unparalleled service across our entire e-commerce ecosystem during these difficult times. Speedy order fulfillment for our customers is the core of our business model. By reacting quickly and maintaining business continuity, we’ve ensured our customers can expect timely order fulfillment, whether they order directly through Newegg or via one of the many third-party e-commerce companies we support through Newegg Logistics.”Jamie Spannos, Global Chief Operating Officer of Newegg
Newegg’s robust 3PL capabilities have proven very effective under the unusual strain caused by the COVID-19 situation.
The massive, immediate shift to bring work and schooling into the home continues to fuel strong demand for ecommerce to deliver popular technology and household goods.
This growth is evidenced by Newegg’s double-digit increase of order volume from March into April. Considering most stay-at-home orders went into effect in mid-March, this growth indicates that demand for these and other essential products continues to be healthy.
Newegg Focus on Timely Fulfillment
Timely order fulfillment remains a top priority at Newegg. And while many of the industry’s largest ecommerce companies de-prioritize customer orders due to an inability to keep up with demand, Newegg continues to outpace its competitors by fulfilling and shipping nearly every customer order in record time.
Even now, Newegg maintains a same-day order fulfillment rate of 99.8%, with average delivery completed in fewer than three days.
By quickly fortifying its network as described by Jamie Spannos, Newegg has also been able to achieve one-day delivery times to consumers in some of the largest markets, including, for example, the New York metropolitan area, Los Angeles County and the Chicago metro area.
At last check, Newegg Logistics had 92% coverage of the United States within its two-day delivery network.
Newegg 3PL Supports Customers on Other Platforms
Lastly, Newegg’s 3PL operation supports not only its own shoppers but also the customers of hundreds of other ecommerce companies. These online retailers rely on Newegg Logistics (the company’s subsidiary service brand) to warehouse and ship customer orders with similar expediency.
This enables the online merchants to function at a high level under circumstances that would otherwise make it very difficult for them to meet customer demand.
DEFINITION // 3PL // Common abbreviation for Third-Party Logistics that typically describes order fulfillment through a warehouse company that picks, packs, and ships online orders on demand. Third-party warehouses may also provide additional services, such as receiving bulk goods and repackaging them for individual sale as well as receiving and managing customer returns. 3PL providers usually integrate with the most popular online commerce platforms, carts, and marketplaces. Learn More
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