Newegg Commerce, Inc. (NASDAQ: NEGG)

Newegg Commerce Inc is a technology-focused e-commerce company operating in North America and globally. The company connects customers with technology products through its online platforms. It provides a marketplace for brands and sellers to reach consumers. Newegg Commerce Inc facilitates product discovery, engagement, and transactions within its ecosystem. Its core activities include direct sales of technology goods and enabling third-party sales via its Marketplace.

Newegg Commerce Inc generates revenue primarily through the sale of information technology and consumer electronics products. Revenue comes from direct sales where the company purchases and resells inventory. Additional revenue is derived from commissions and fees paid by third-party sellers on its Marketplace. The company also earns income from ancillary services such as logistics, fulfillment, marketing, and supply chain solutions offered to business partners. Its customer base includes individual consumers and business clients seeking technology products.

The company operates through the following segments: Direct Sales and Marketplace.

• Direct Sales involves Newegg Commerce Inc sourcing products directly from manufacturers, distributors, and wholesalers. The company takes ownership of inventory, manages fulfillment, and sells products to B2C and B2B customers. This segment includes warehousing, order processing, payment handling, and customer service. Direct sales accounted for approximately 72.3% of gross merchandise value in 2024.

• Marketplace enables third-party sellers to list and sell products on Newegg’s platforms. Sellers pay commissions on sales, ranging from 8% to 15% by category, and may pay fees for value-added services. Newegg Commerce Inc provides sellers with access to its customer base, logistics support, marketing tools, and data analytics. The Marketplace hosted over 5,200 active sellers and approximately 4.3 million SKUs as of December 31, 2024.

Newegg Commerce Inc holds a leading position as a technology-focused e-commerce platform in North America. It competes with major retailers such as Amazon, Best Buy, Costco, and Walmart, as well as specialized electronics vendors. The company differentiates itself through its deep product selection in IT components, strong relationships with technology brands, and a loyal customer base of tech-savvy consumers. Its competitive advantages include curated product offerings, data-driven shopping experiences, reliable fulfillment, and a vibrant community of technology enthusiasts.

Newegg Commerce Inc serves over 2.1 million active customers as of December 31, 2024, consisting of both business-to-consumer and business-to-business clients. Its B2C customers include IT professionals, gamers, do-it-yourself technology enthusiasts, and early adopters. B2B customers span healthcare providers, educational institutions, government agencies, and businesses of various sizes requiring office and IT equipment. The company does not disclose specific customer names in the filing.