By Francesc Rubinat Fontanellas

Hello to everyone!

I was searching for some interesting online companies and I have found this video in Youtube where it is explained how the company called NewEgg operates.

First of all, before you see the video, I think it is important to know which is the activity of this company and which are the products they sell. So, NewEgg is an online retailer, whose business is focused on selling premium products like computer hardware and software and electronics at competitive prices. Its base is in California (United States), but it has warehouses all around the world due to the success of their business idea, since its foundation in 2001.

This video is really interesting because it really mention some aspects that any online retailer must be concerned about, like the time in which orders are processed and arrive to the client, or how must be the process since an order is placed to the moment that the customer receives it. They achieve all that thanks to its flexible system, which allows the company to process an order in 20 minutes more or less (the main reason for them to do that is to obtain a competitive advantage against its competitors, and one of these advantages obviously is to have lower prices thanks to the reduction of costs).

Some of the things that allows them having this competitive advantage are really interesting, like the system called “light directed picking” or the WCS system that controls all processes from the warehouse and shows an alert when something is wrong. Another example of a good way to increment flexibility is the design of the warehouse, which makes possible to do the replenishment while they are picking items.

In conclusion, Newegg is an example of a successful online company and this video explains how they manage to be one of the most awarded companies on selling on the Internet.