Why Is Newegg So Cheap? (Explained With 4 Reasons)

Newegg is an online retailer that specializes in offering computer hardware, electronics, and other tech-related products to consumers.

It is a well-known fact that Newegg is able to offer prices that are often lower than their competitors.

Newegg’s ability to offer low prices is a result of a combination of factors, including their direct relationships with manufacturers, large buying power, low overhead costs, and efficient distribution network.

These factors have allowed Newegg to offer customers the best possible prices for tech-related products while maintaining a high level of service and quality.

Let’s explain these factors in details:

1. Direct Relationships With Manufacturers

Firstly, Newegg has established direct relationships with many electronics and computer hardware manufacturers. This means that they are able to purchase products at lower prices than other retailers and pass on the savings to customers.

By maintaining these direct relationships, Newegg is able to negotiate better prices with manufacturers and suppliers, which allows them to offer lower prices to customers.

2. Large Buying Power

Secondly, Newegg’s size and buying power allows them to negotiate better prices with suppliers and manufacturers. As one of the largest online retailers of electronics and computer hardware, Newegg is able to leverage their size to get better deals from suppliers and manufacturers.

This buying power allows them to purchase products at lower prices, which in turn allows them to offer lower prices to customers.

3. Low Overhead Costs

Thirdly, Newegg operates primarily as an online retailer, which means they have lower overhead costs than brick-and-mortar stores. This is because online retailers do not have to pay rent for physical store space, utilities, or salaries for as many employees.

By keeping overhead costs low, Newegg is able to offer lower prices to customers without sacrificing quality or service.

4. Efficient Distribution Network

Finally, Newegg has an efficient distribution network that allows them to ship products quickly and cost-effectively. This helps keep their operating costs down, which in turn allows them to offer lower prices to customers.

Their distribution network includes partnerships with several carriers such as UPS, FedEx, and USPS. These partnerships allow Newegg to ship products across the country quickly and efficiently, which allows them to offer lower prices without sacrificing speed or quality.


It is also worth noting that Newegg’s commitment to offering competitive prices is not limited to their own website.

They also offer a price match guarantee, which means that if customers find a lower price on an identical product at a qualifying competitor, Newegg will match the price.

This policy ensures that customers are always able to get the best possible prices on the products they need.

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