Electronics retailer Newegg plans to raise $175 million for an IPO, according to an SEC filing. The online retailer sells IT products, including computer hardware and software; and consumer electronics through its website. In the filing, the retailer says that it has been profitable every year since 2001 and posted sales of $2.1 billion in 2008.
Newegg’s net income increased 55 percent in 2008, to $28.4 million. Sales increased 13 percent to $2.1 billion in 2008, and have just more than doubled since 2004, when sales were $982 million. As a retailer, NewEgg’s’s profit margins are slim. It was only 1.4% in 2008. Amazon’s profit margins are around 3.3%, which is double Newegg’s margins. Reaching a 3.3% margin may the best Newegg can hope for. And while Newegg is seeing decent revenue growth, retail is tough, especially when your biggest competition is Amazon.
In the filing, the retailer admits that it is playing in a tough field that’s chock full of other players. Newegg says that there are “intense competitive efforts” directed at them from rivals that have greater financial resources (i.e. Amazon), giving investors no assurance that Newegg will be able to compete against the big guys.
As with any IPO, investors will be looking for growth potential and whether Newegg can expand those profit margins over time. In order to double its profits, it can either double its revenues to $4 billion or double its profit margins to match Amazon’s. Which one is more likely to happen first if at all? Would you invest in Newegg?
Click on the financials below to enlarge.
Razor thin margins on that level of revenue indicates to me some poor management of their upstream chain.
Also, and this is purely anecdotally and from personal experience, Newegg’s post-sale support is shoddy and and ambiguous at best.
Are you talking about the same Newegg? Most people I know love their post-sale support.
Me?
Second that. Newegg’s service, support, and RMA procedures are second to none in my experience. Many reviewers make the same comments in their product reviews too.
Also, alot of their products have manufacturer’s reps reading the reviews and responding where someone got a DoA or other problem. You don’t find that very often.
Well your anecdotal evidence is probably wrong. Their post-sale support is one of the best experiences ever… Amazon should learn from these guys. Pretty much every electronics purchase I make goes through Newegg — the price is cheap enough, and they bombard you with the status of the order so that (if you’re like me) you can wait at the door for the UPS guy to show up.
When buying computer parts to build my own PC’s, I’ve always had a great buying experience with Newegg.
It’s a hella-tough business though, there is always some fly-by-night mom’s garage outfit advertising a CPU or video card at a buck less and it usually still takes one bad experience with those clowns to spend the extra buck with a class outfit like Newegg.
I’d have to disagree, their after sale support is easily the best I’ve encountered on the web. What Newegg have you visited, or have you?
I’ve been buying Newegg stuff for years. Newegg is amazing. Their prices are the best. Your package arrives in 3 days or less. Great policies great service. Never had a DOA.
Newegg has loyal customers (me being one of them – I’ve built three custom systems, all buying from them). I won’t buy PC parts anywhere else because I know Newegg is in a league of its own in this industry.
This company can beat Amazon easily.. don’t underestimate them. Comparing Amazon to Newegg for computer parts is laughable.
Gotta chime in and say that NewEgg has the best customer service that I’ve ever dealt with.
I have nothing but good things to say about Newegg. Very efficient service and no problems with any post-sale support, if any is needed.
Armen, I know that Armenian guys own Fry’s and you definitely have an Armenian name. Are you badmouthing a competitor? Newegg is a very good store that offers great service and all in all, one of the best ones I’ve dealt with so I disagree.
Newegg’s store ratings are among the very best on the internet. That is how it has always been. Check the stats.
http://www.rese...om/store/Newegg
Ive made more than 20 purchases there over the past 7 years and everything has always gone perfectly including RMA’s.
very impressive! distributed e-commerce could offer them more growth opportunities.
NewEgg has a lot of loyal customers and have provided excellent service to me, all the time. I love their prices too. Is this just a troll post to, in some small way, affect the stock?
I agree completely. NewEgg has always been there to help build computers to build companies back when that saved a lot of money. And they still have the best selection of hard to find parts and easy returns. They ship according to their SLA. That’s all I ever ask.
Very strong company.
The site looks like a professional and well-designed version of tigerdirect.com
I think the company will continue to grow if they start refurbishing apple laptops and selling them.
also the profit margins would improve if they started selling refurbished apple laptops
You haven’t been to newegg before? I guess you don’t buy computer stuff… it’s unfair to compare to tigerdirect — those guys are sleazy and make it nearly impossible for you to return stuff easily. Newegg’s return process is fast and easy.
Returning to TigerDirect is easy for me. I just drive 16 minutes to the store and yell a lot.
Okay, so they’ve done well. But why go public?
No outside investor will give them $175 to grow their business to 4b in rev (since it’s obvious to me that they are not going to be able to double their margins).
Then again, I am not sure where they will even get more eyeballs for their inventory. People are already getting savvy enough to put in SKUs into Google and navigate to the lowest prices around.
“People are already getting savvy enough to put in SKUs into Google and navigate to the lowest prices around.”
…which are usually at Newegg.
Hey Dave,
Investors need to get money out, and they need the money for servers, people, candy, and unicorns.
Gotcha. I’m going to go setup a price alert for unicorns.
They are not Unicorns, they are horses with swords on their heads that guard my hopes and dreams!!!
Bonus Points for naming the TV show reference
Suit up!
Easy, that quote is from JD in Scrubs.
I would def invest on NewEgg if I had some money.
when will amazon buy them?
I have always thought Amazon should’ve bought NewEgg way before they buy Zappos.
Just seems like a much better fit, especially NewEgg is also very customer-centric.
Amazon do not need NewEgg, they have the 3rd party sellers do the work for them and charge 15% gross.
Why go IPO? To cash in? They need more money to play. They have built the second largest online retailer so they must know what direction they are headed in and what they are capable of.
I love NewEgg, barring any nasty surprises I’d jump on the stock.
I second that. Newegg does have low profit margins, yes, but they also have a fast shipping process and really low prices on most items.
Their shipping is fast and their prices are great. However, those obviously haven’t resulted in a good profit margin. That isn’t to say that things can’t change a bit, but as much as I love NewEgg, those financials don’t scream “buy me.” Not right now at least.
I’ve been buying from newegg for about 4 years now. My experience has been great, even with the occasional RMA. I really like candid user reviews, often from obvious technically-savvy computer builders. I’ve quit buying from Fry’s, unless I’m desperate and need something immediately. Best Buy doesn’t even register on my radar when it comes to buying computer stuff. For me, newegg for computer supplies is like BHphoto for photographic/video stuff…great inventory, reliable, fast fulfillment, uphold policies, and generally pretty good prices. My concern is that going public will destroy newegg’s much of what I love about newegg. I’d be hesitant to buy the stock because I think it will change for the worse, as often happens when purely financial goals outweigh everything else.
From a personal consumer standpoint I think they’re great, far more times than not they’ve got the best pricing on items I’m shopping for, and if they’re beat by a few bucks by some random no-name website, I’ll still buy from them because of my customer service experience from them has been good
I don’t use Newegg as much as I use to back in 2004-2006. Competition is fierce, and their margins are scary. I also heard that their internal business processes are a mess. However, their product and service is one of the best out there. I like it even better than Amazon. That is the differential factor for me.
it’s worse than you think – their management is almost the stuff of comedy – it is completely re-shuffled every 6 months, and people just get fed up and leave. The only people that stay are Chinese immigrants that have no other choice.
First off, a disclaimer that I worked at one of the companies within the Newegg organization between 2004 – 2005 so I’m open to answering any questions about the history and any type of public information.
I think this IPO has been a long time coming and there’s a lot of good bits in the SEC filing if you go many pages down. At it’s core, the Newegg business was built on an unflinching dedication to customer satisfaction and a very competitive pricing model to ensure they got customers and they kept them. This high level of customer satisfaction can be seen through their resellerratings.com score as well as through their internetretailer ratings. Once they built up the core user base of hardcore techies, then they could count on repeat business and word-of-mouth for their revenue stream. The great experience that people had also meant that they could gradually begin to raise prices to get a better margin while still counting on customers to stay with them given the fast shipping and lax return policies (very very lax in the early days).
Their customer support is run out of southern california so they have never had to send any of the customer facing elements abroad and they have a large presence in china (see newegg.com.cn).
The need for the IPO is probably because of the following:
- Investment in their brand – As the 2nd largest internet-only retailer, you’d be suprised by how little people know Newegg. They have to throw some real $ at this problem to get to $4b in sales.
- Hardcore geekage – They are one of the strongest retaileres for all things hardcore and techy like computer parts and some CE components but that arena has razor thin margins. If they want to branch out, they have to invest in competing directly with Best Buy and their core offerings of more consumer electronic goods which have better margins and more widespread demand.
- Business & Government Solutions – Their business model is consumer oriented but there’s big business in business IT solutions and governemnt IT supplies which is what companies like CDW do well on. With some fresh capital they could try and attack this market to drive signficant revenue growth. However, it also carries high costs to develop an account/sales team nationally which is not something they have done in the past.
2 Billion in sales sounds about right.
Honestly, geeks, IT managers and sys-admins all go to Newegg FIRST and have been for 5+ years. It’s a great site.
Their razor thin margins are because they really do have the best prices. Honestly, I hae a hard time finding prices better than Newegg’s unless it’s directly from Dell or Apple or other manufacturers. as retailers go, their prices can’t be beat.
The more competition, the better. Drive down them margins, baby!
Damn, I cannot believe how slim their profit margin is. I mean, $28 million dollars profit sounds good out of context, but when that’s from $2.1B in revenue…. yikes.
I was sad to hear about the IPO honestly, because now they have to answer to shareholders, which never results in anything good for the customer. But Newegg is a great company, I’ve bought computer parts from them almost exclusively for the past 5-6 years, so I hope they can keep on truckin’.
Why does Newegg need to get larger?
I was hoping they’d sell more than just computer stuff. I’ve bought most of my electronics from Newegg, but sometimes it would be nice if they had more selection (like their home audio — they only carry polk audio floor standing speakers)
I’ll admit, their computer stuff is downright good and cheap. Previously I bought my mini-itx supplies from distributors, but I found buying it on newegg was almost 40% cheaper — and they shipped faster. It’s hard to beat these guys.
They also carry the Sennheiser headphones, which are much better than Bose for the same price range. I have not bought much from them but audio and a couple of small computer items, but never had any problems with customer service.
This is one of the very few IPO’s I might actualy buy out of the gate, unline AONE which is/was way overpriced at anything over $10.
I don’t think there’s a tougher market to be in for margins. It’s easy to find the same product with a quick search (Pricegrabber is where I start), and you have the most savvy online customers there are. Good luck.
Amazon has better margins b/c people don’t price compare as much on there, and they’ve always done a good job with their recommendation and ratings systems. So they get away with *appearing* the cheapest (see: http://www.love...-best-2462.aspx) I don’t see the same margins being possible for NewEgg b/c of what they sell and who they sell it to.
Thing is, any place with lower prices than Newegg is going to be one of two kinds of business: Amazon, or some crap-store with onerous return policies, terrible customer service, and possibly gray-market merchandise.
So the IPO window is Open, like that idea. Will facebook and twitter be Next
iBanks are getting … Again
Why does any company go public?
Amazon is not that cheap and alot of stuff they don’t sell, they co-sign
in a retail landscape full of web sites that make it very difficult to find any information at all about IT products and consumer electronics products, a company doesn’t need to actually know what it’s doing to stand out in the minds of consumers, and that company is newegg. For the time being, newegg has an edge over the competition only because of what little non-traditional pre-sales information that they bundle with their traditional business model of… shipping stuff to consumers. Of course, it’s entirely plausible that some startup will come along and completely gut newegg’s operation by decoupling the information from the distribution and providing only information to consumers, and doing a better job of it at that. Look no further than Radio Shack if you want an example of just how unsuccessful a strategy of selling information can be in the retail arena. It’s questionable if newegg’s competitive advantage of selling information about products can grow because there’s a limit to how much information consumers can absorb. The few consumers who are savvy enough to sort through newegg’s total kludge of a database of consumer experiences to mine whatever useful information there is in it about products already do so. Sure these consumers love newegg for having the most comprehensive such database in the industry, and they gush to anyone who will listen about newegg, but while negative word-of-mouth can significantly harm a brand name, positive word-of-mouth only gives you so much of a ‘meh…’ effect because it has to compete for (extremely limited) space in the minds of consumers with the advertising engines of the competition. In my experiences, NewEgg apparently re-ships obviously defective returns to multiple customers…. Hello? Is anyone home? And then when you look at the contradictions in their web site… The web site is a gold mine of information about products reported by customers, yet at the same time it’s totally mismanaged, e.g. a simple minor model number change or change of the product’s bezel from black to white will dump all of the reported information about the product. wtf? I remember one time I was looking for a particular type of product and I found that of a half dozen examples of this product that they sold, none were in the correct category… Tried to communicate this to them via their online feedback form, but they never could get it fixed… Made it very difficult to find the products I was trying to buy because I didn’t know all of the brand names of all the products of that type… And any time I’ve ever run into a total screw up on newegg’s part or on the part of one of their shipping partners that is obviously a systemic problem that newegg could easily remedy requires me to get on the phone to fix it, my conversation with the customer service person ALWAYS goes like this:
Me: Hey you know this is obviously going to keep happening to your customers it wouldn’t be that hard to fix this so it doesn’t keep happening and costing you money.
newegg rep: Yeah we’ll look into that. (I can tell from past experience and simply the tone of the rep’s voice that the rep is just being polite.)
Me: Sure you will
newegg rep: uhhh… no ah we will look into that.
Me: You really will get that fixed?
newegg rep: We… ahh… we will?
No, newegg is no different from any other disorganized bureaucracy in American business today. The only reason they did 2 billion in sales is because they got lucky that some kid programmed a cool customer feedback database for them a few years ago. They’ve sat on their asses and haven’t improved it in the slightest since then, and they haven’t innovated one bit since then, and they probably don’t even realize what role this database plays in them doing any sales at all.
I’d imagine that the very reason newegg has to keep prices so low is that anyone who is savvy enough and compulsive enough to mine newegg’s database for information about products probably also has the time and inclination to check 10 different competitor’s sites for lower prices once a determination is made as to which product to buy.
I don’t think any large web retailer in their right minds would would buy newegg. The only thing about newegg that stands out and is unique is their database of consumer experiences reported about products. As far as retailers are concerned, the sale of products coupled with information is a niche market; most consumers can be bought off more reliably by feeding them advertising than by feeding them information. IF a retailer actually had enough foresight to see what’s coming and to see that this is all going to change eventually, with information of some sort or another becoming more important to consumers than advertising, then such a retailer would be wise to acquire not newegg, but some assortment of startups that deal with crowd-sourcing information about products, and eventually, about distributors. In an information age, it’s hard to imagine that big box retailers that use the stone-age model of location location location and advertising wouldn’t go the way of the American steel mills and auto companies. Give consumers what they want, or die. Right now, newegg is closest to giving consumers what they want.
Name a contrasting seller that fullfills all your complains about newegg. Amazon might be as close as it gets, and its no where near as organized or as many feedback. I’ve never had a problem finding what i needed wether it was from the part, or the company. Their site is the most organized for pc electronics that i’ve ever used, and i’ve bought from amazon, mvwave, buy.com, fry’s and the lot. They ship fast, they offer great deals, and the customer service is the best i’ve seen. I’ve been working with computers, building, repairing, selling, and now i find myself buying everything from newegg, because of convenience, because how well they organize their inventory and i constantly check their daily deals & email promotions. No other site has been able to retain my purchasing direction and I consider myself to be a pretty avid net user and bargain finder. Dell has good prices for systems every now and then with coupon codes, but you have no idea what kind of quality parts they use and alot of crap is proprietary inside. Sometimes even if newegg isn’t the cheapest, the free shipping, the service, the reliability retains me. Btw most of the feedback is only to check the DOA rate or first hand experience about the product, as far as the specs, most ppl who know what they’re doing still go to review sites that talk about the product specifically and benchmark them. The comments are usually just nuances about the product, the feel, the manufacturer issues, etc, usually the non technical information is whats useful in there, not too many actually review and benchmark results from them through they are there. Best Buy spends a ton on advertising, I don’t buy anything from there unless its a monster discount deal and i can’t get it on newegg or elsewhere, and the most of the people who work there, never seem to be able to answer my questions relative to the product in the area they are assigned to, not even information thats right on the back of the box.
Wall o’text, tl;dr, etc. Paragraphs ftw.
You don’t seem to be Newegg’s target audience. Most people go to third party reviewers for a clear and concise understanding of competing products. The customer reviews on Newegg aren’t much different than the customer reviews anywhere else. Some people know what they are doing, but most don’t. At best, all you can hope for is to spot a red flag that tells you to stay away from a certain product. You can’t make an informed decision off of customer reviews. Ever.
Sales Tax at 9.75% here in L.A. county can make NewEgg ultimately a bit more expensive than Amazon and other out-of-state alternatives for CA buyers.
Seeing how much Best Buy has cleaned up though, there may be room for higher margins.
I think Newegg used to have more items with free shipping. (I started shopping with them from 2001)
Most of the items have about the same price at NewEgg and Amazon. With the free shipping and No Tax, I buy much more stuff from Amazon now
NewEgg isn’t the cheapest, but it’s very close, and they have a reasonable return policy and very fast shipping. I spend thousands of dollars there (I buy for work, too). I am going to invest, out of loyalty.
Also, I have met a couple people who owned ABS PCs, and thought they were great. They said the got good customer service (on a whitebox PC!) and one bought a second ABS machine. The other was looking and considering an ABS. ABS was started and run by the NewEgg guys.
I like Newegg but being in CA I rarely buy from them. The best they can do is to move out of CA, maybe to OR, so that people in CA which represent a large chunk of tech purchases, can buy from them. Currently those sales go primarily to Amazon.
perhaps you should all look into something called use tax
Would I invest? Hmm. Probably, based largely on the fact that NewEgg has earned incredible loyalty from demanding customers.
If NewEgg carries something I need, I’d rather buy it from them than pretty much any one else. Amazon’s, search completely sucks for narrowing among a variety of similar products (like RAM, motherboards, etc). Someone else might be cheaper, but their search probably sucks too, their prices may suck once shipping is added in, and I have no idea if they’ll be as good about providing status and handling RMAs as NewEgg.
As for the financials, well, at least they are profitable
. I think they have plenty of room to ramp up their volume and I suspect they could do so fairly cheaply by persuading their existing customers to reach out to their less geeky friends and family. As for margins, I expect they could expand those as well — if they win less sophisticated buyers and sell more traditional CE items they can probably sell more extended warranties without much trouble.
It is a solid businesses and ambitious enough to expand to China and Canada. The ultra low margin be attributed to the overseas expansion.
Whether to invest or not depends on the overall valuation. If its is below $400 million It would be great value buy.
I love Newegg. Low prices, great user ratings and information.
I found it funny when they called them selfs “the small guys”.
What you are looking for is sales to increase while SG&A remains flatish leading to wider margins in the future. I am impressed that they are surviving the recession, sales flat, margins intact. Also impressive is that they have been profitable while building the business. I have heard that their fulfillment process is top notch.
We need to see the balance sheets as well, to look at how they use their money and to check that they do not have a pile of unsellable stuff building up in the back room.
I’m in CA and as long as the final price is reasonably close, I’m willing to pay extra for Newegg. I suspect many IT professionals feel the same. Their customer support is second to none, their site is easy to navigate and they’ve built a lot of trust with their customers. Their customer reviews, much better than on Amazon, are also an extremely valuable, difficult to replicate, asset not likely reflected on their balance sheet. Do a search on a specific product and you’ll see many show up high on Google search. Free leads! Depending on the pricing, I would certainly invest in them. Always invest in the best and Newegg is the best in what they do.
Establishing a reputation of ‘Lowest Prices’, ‘Geek Friendly’ and ‘Excellent Support’ = Low margins and high return rates.
I have no doubt that once NewEgg is a ‘household name’ they will be able to bump the margins and still retain the ‘geeks’ that rely on their service and brand recognition.
I am investing in the IPO. When the ‘basement geeks’ grow up and start shopping servers and volumes profitability will skyrocket.
$175 million? What are they going to do with that? Add a staff gym and re-model the cafeteria?
Amazon currently has $3 billion plus in the bank. That’s a hefty war chest that they can keep on fueling their growth.
If Newegg thinks they’re going head-to-head with the likes of Amazon in the long run on an IPO round of $175M (which is only about a month of gross revenue) I’d want them to share what they’re smoking. It’s obvious some people at Newegg want or need to cash out, or they really need the capital, as this is obviously not the right time for them to do this.
Don’t get me wrong. I’ve ordered from Newegg many times I will continue to do, especially in light of the fact they’re practically PAYING me to buy from them after reading their SEC filing.
They do have great customer service, but as an investment, I think I’d rather sink it into a fly-by-night commodities stock – at least have a chance in hell.
If i want a book il’l buy at amazon, if i want a computer part, im going to newegg. Period. They’re competing with amazon’s computer/electronics sector and they’ve already won me over. Amazon sells alot of low quality electronics, and alot of them is overpriced.
I would buy Newegg stock, if for only the old-fashioned reason of buying stock. Because I believe in the company and what they stand for, and I would like to be involved in their continued success.
It’s founder is also from Taiwan like yahoo’s Jerry Yang.
When buying computers is great experience. I have always had a great buying experience with this site. check some goods.http://www.justcompareit.com/m~c-desktop-computers~b-461.aspx?ag=3
i think one way for newegg to increase their profit margins is to develop newegg brand equipment. I remember reading an article on TC a while ago about how amazon is also developing their own private brand and selling usb cables, etc. under their own brand name to increase profit margins.
Newegg has their own brand it’s called Rosewill (name comes from a modification of the Rose Hills area of Los Angeles where Newegg originated (out of ABS Computer Technologies in Whittier).
Never had an issue with newegg. Fast delivery, great support, excellent prices. Over the past few years I’ve probably spent $10k there.
newegg has alwasy been my number one choice for hardware as of late
When I think electronics, I still check out newegg instead of amazon. However, I can see how non-geeks would go amazon first.
Never realized NewEgg would be scared of Amazon, but makes sense.
http://www.trad...spx?symbol=amzn
I buy my tech stuff from Newegg and everything else from Amazon. I’m yet to have a bad experience with either, here’s to hoping Newegg stays with what they do best and doesn’t try to take on too much.
I’ve been buying computer components, peripherals and consumer electronics from Newegg since 2003. Since reading these comments I went back through my order history and tallied almost $16,500 since my first order. I only had 1 RMA, which went without any problems. I am confident that there are many other satisfied and loyal customers like me. Many try to copy Newegg, such as Micro Center, Comp USA, Circuit City. There are very few places like the egg where you can get low prices and top notch service. In the end, Once you know, you Newegg… It is the benchmark for comparison shopping for computer stuff and electronics.
Seeing their Income Statement just now and doing some numbers of it, it does seem like they average about 10% margin on gross revenue, which is better than the four percent that amazon somehow to manages. in this sense, it is very good. Amazon is trading at a whopping 58 P/E mostly having to do with the Kindle and other digital download products. Obviously newegg wouldn’t trade at such a level since the business of newegg is sort of different than the business of amazon.
Personally, I can see revenue growing, but they would have to be the preferred retailer in China for me to purchase this stock. I had this stock priced at about $10,80 doing a simple project .36 cents a share and putting a 30 P/E on it. It would need to do well in China though to move anyway upward momentum on this stock unless DIY desktops starts to become a trend.
Personally, shopping at newegg is a great experience, as I’ve bought many things from there; I’m not sure though it can grow at the rate that it needs to for me to invest in it and come out with capital gain, since I’m certain that it will not pay a dividend within the first few years.
Whoops, it was suppose to be a 1.4% margin, not 10%, sorry, and um..it pretty much a signal a no buy, don’t buy this.
I consider myself a very loyal customer of newegg.com It’s so simple to shop there, and the reviews help me alot. Shipping is fast. I buy 95% of my electronics from newegg, the other 5% is when i need something the right that same day!
I hope newegg stays profitable to stay many more years in business.
love newegg, the number one place to find parts for computer upgrades, great prices, easy inteface.
My guess is that Armen is referring to egghead.com which is run by Amazon. Newegg customer support is 2nd to none that I have ever experienced in any business.
I bought my first item from NewEgg in March of 2002 (Atlon XP1700+ processor). I bought my latest item today (Keurig coffee maker). Since my first purchase with Newegg I have also shopped at Amazon, Zipzoomfly, Tiger Direct (ni SysteMax and CompUSA). There is no comparison. NewEgg rocks.
So, since my first purchase in 2002 I have spent exactly $29,489.33 with Newegg (readily available in my Newegg account area — try that with a competitor). And I am not an IT geek. I am a west Texas cotton farmer trying to make ends meet. I do have access to a Best Buy, CompUSA (ni Tiger Direct) in my nearest town in case of emergency.
I do have a bit of trepidation that the good old Newegg I’ve grown to know and love may somehow change by going public. Time will tell but I’d bet on Newegg any day compared to their competition.
Costco profit float between 1% and 2%