Newegg Commerce, Inc. (NASDAQ: NEGG)

Newegg Commerce, Inc., also known as Newegg, operates as a prominent technology-focused e-commerce company in North America. Established in 2003, Newegg has grown into one of the premier e-commerce businesses in the United States. The company's primary business activities encompass operating online marketplaces where customers can buy a wide array of technology products, including IT/CE products, software, and other related categories.

Newegg's main business activities revolve around its online marketplaces, offering technology products through its direct sales business and third-party sellers via its marketplace model. Direct sales contribute significantly to Newegg's revenue, accounting for approximately 74.2% of its gross merchandise value (GMV) for the year ended December 31, 2023. This business is strengthened by Newegg's relationships with major technology product brands and distributors, enabling the company to secure a wide variety of products at competitive costs.

Newegg's marketplace platform hosts over 8,000 third-party sellers, offering around 6.1 million SKUs across various product categories. This marketplace model thrives on Newegg's ability to provide a trusted and secure platform for both buyers and sellers, as well as its rigorous process for assessing and selecting marketplace sellers.

The company's direct sales business and marketplace operations generate revenue by offering technology products and charging commissions on sales made through the marketplace, along with membership fees for additional value-added services and tools. Newegg's position within the industry is characterized by its ability to provide a secure platform for buyers and sellers, relationships with major technology product brands and distributors, and a comprehensive suite of logistics and fulfillment services.

Key competitors of Newegg include other online retailers, such as Amazon, and traditional brick-and-mortar retailers that have expanded their online presence. Newegg's customers include a diverse range of individuals and businesses, such as government agencies, healthcare institutions, education institutions, and businesses of all sizes. The company's customer base is recognized for its high engagement and loyalty, with numerous customers returning to the platform for repeat purchases.

Newegg's platforms, including Newegg.com, Newegg.ca, and Newegg Global, serve as the foundation of its ecosystem. These platforms cater to different market segments, customers, and product categories, while sharing a common Newegg brand and supported by the company's integrated logistics and fulfillment capability, operational expertise, and technology infrastructure.

In terms of its technology infrastructure, Newegg has developed a robust and scalable platform designed to accommodate its growing customer base and increasing demand for its products and services. The company's technology infrastructure includes proprietary and third-party solutions, such as its own e-commerce platform, supply chain management system, inventory management system, and payment processing system.

Newegg's research and development team focuses on innovation through software development, algorithm design and development, and IT infrastructure design and maintenance. This team continually upgrades the platforms and tests new features to enhance the customer experience.

Security and privacy are of utmost importance to Newegg. The company is dedicated to protecting information security across all its platforms, employing various techniques to safeguard the integrity of its networks and confidential data. Newegg has also adopted a detailed privacy policy, explaining its data use practices and how privacy is protected at Newegg, including the extent to which other Newegg users may have access to this information.