Newegg shipping 5.9% of subtotal

I was doing some paperwork and decided to punch in all my newegg expenses since Jan 2004.

  1. Found that shipping costs are 5.9% of the subtotal. I had suspected that the prices have been inching up. However, I think what happens is Newegg has been subsidising less shipping costs, and I’ve been shopping elsewhere.
  2. Since October 2005, everything has been shipped UPS.
  3. Eight out of thirty-one (25%) of shipments have partially come from New Jersey. Rest are pretty much all California. (I ship my stuff to NYC right off the bridge from Jersey, so if it’s from NJ it’s really fast.) I had suspected more and more stuff had been coming from CA, but apparently it’s just my imagination.
  4. Most disturbing, I have spent $9,290 the last three years. No idea how and where. Actually, I do know since I can see the invoices. It’s just disturbing to realize I’ve spent so much money on junk. I’m afraid to look at invoices from places other than Newegg.
  5. I have had only two items that required an RMA since that time. One was a motherboard that was DOA (went nuts troubleshooting that system, finally just ordered new MB and poof everything worked). The other was of course, a hard drive.

When I did my taxes this year there was a whole section for my CPA of just Newegg and Amazon.

Yeah, my historic Newegg total is always a bit shocking. What can I say… they do ordering parts right.

I was going to order a Newegg “special” hard drive a couple days back. Was $85 for the hard drive with shipping an additional $5. I decided since I was doing it anyway, I also would go ahead and buy the keyboard I’d been looking at but unable to find locally. Another $50 plus, I believe, $7 shipping. No big deal though, because it was all one shipment so the shipping should combine.

Not so much. I really get the feeling they’re out to cut their low margins with shipping excess. I can believe it would cost them $5 to ship me a hard drive. (Via, I believe, UPS ground) Maybe even more. But I can’t believe there’s any reason other than sheer gouging it would cost another $7 to throw in a 2lb keyboard.

So I started looking around… I found the same hard drive for $6 more at ZipZoomFly (including shipping) and the keyboard for $10 less. The kicker was ZZF had free shipping.

Not only has NewEgg apparently quit subsidizing shipping, I think they’re actively using it to increase profit margins. That’s the only reason i can come up with that I have to pay the individual shipping charge for each item despite ordering multiple items at once. As near as I can tell they’re not drop-shipping these things. (And even if they were, the extra from shipping ought to be offset by substantial savings due to not having to keep a big warehouse and pay for it.)

Plus, they have two warehouses, east and west, which should further cut shipping costs…