How YouTubers Exposed A $1 Billion Company

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Newegg used to be the go-to place for gamers and PC enthusiasts to buy PC parts. But, over the past couple of years, Newegg has fallen out of favor. In fact, their stock is down over 99% since IPO. Why you ask? Well, Newegg has changed over the years. Some of the attributes that made them shine over competitors like Amazon was their custom service for PC parts. Not only was their website tailor-made for PC builders but their customer support was brag-worthy. But, over the years, Newegg has not only started to slack on customer service, but it appears that Newegg is actively neglecting customer service. From blaming customers for preexisting damage to refusing to accept valid returns, Newegg slowly turned their core audience against them. And this only blew up in their face when large creators began experiencing the same frustrations and began sharing with their audience. This video explains the various pitfalls of Newegg and how Newegg fell from grace.

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Timestamps:
0:00 - The State Of Newegg
0:50 - What Is Newegg
2:41 - Newegg Today
4:43 - Controversy & Downfall
9:26 - An Autopsy

Resources:

Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.

[berndkemmereit]

Same issue as always. As soon a Company goes Public, they start to cut down, to maximise profit for shareholders.

[jerkytoo]

Maximizing shareholder value tends to lead to companies abandoning the company culture that made them successful in the first place.

[sunnohh]

Better title “Newegg destroyed their own business”

[ncodexg]

Former employee here: part of their failure is due to selling their company to a Chinese investor. They constantly put pressure to recoup their investment cost and go public as soon as possible at the detriment of the company. Hired incompetent C level execs and paid such low salaries that the good employees would leave shortly after. It was a very toxic work environment and everyone either hated their managers or kissed ass to not get fired. I’m glad that place is going under.

[Sunless-Sunny]

I know it’s for the clicks but putting Linus on the thumbnail when he basically did nothing is super disrespectful to Steve and other YouTubers that actually did all the work…

[rebeltheharem]

Same story as old as time. Once you go corporate, you lose the things that fans liked. Everyone who cares about the company gets replaced by people who only care about balance sheets and accounting. And then you lose the number one reason why people used your services/company in the first place.
Thanks Jack Welch, for making "maximize share holder value" the plague of corporate governance.

[Ryasis]

Allowing 3rd party resellers was end of it for me. When the video card prices skyrocketed, it became much worse.

[magnetik]

I remember when newegg got caught selling fake processors and tried to blame shady suppliers.. this was way back in 2010.

[hilariovilla]

Why did you use Linus as a thumbnail instead of Steve he's the one that did most if not all of the leg work for the exposure ....

[davidknightx]

Private company - You work for the customer
Public company - You work for the shareholder

The ONLY way the latter works is if, somehow, the shareholder IS the customer. But shareholders tend to have lots of wealth. Most Americans don't.

[fyrestorme]

short version: they had some success and management became arrogant and greedy and started lying, scamming and stealing from their customers.

[cinifiend]

Before the video started I was guessing it was a case of "they got greedy and stopped giving a shit about customer service" while knowing nothing about the company or background story. Turns out I was correct.

[kuboskube]

I used NewEgg to build a PC back in 2015. It was absolutely amazing, really. Now, I didn't buy my parts from NewEgg... I just used its PC builder and bought the parts from whoever had them cheaper at the time. It's still my most reliable PC to date, barring a single failed SSD.

[davidcoronado]

When I worked there back when it was the Newegg described, it was all about Customer Service. I can tell you this video hits spot on.

[aac]

I was done when they added 3rd party sellers.

[ericbaxter]

They sent me the wrong cpu. Ordered an i9 13900k with a motherboard combo. They sent me an i7 with it. I requested to return it unopened. They denied the return on arrival saying it was damaged and I had to buy an i9. Went 900 out of pocket.

[SubversionGarage]

This scenario happens over, and over because retailers don’t understand they are in the customer service business. When you don’t design, or build products, the only thing they have control over is the customer experience.

[JosephDickson]

To be fair YouTube personalities had nothing to do with Newegg's decline, the company did it to themselves.

[JodyBruchon]

They weren't actually related, but I remember buying things at Egghead in 2001 and they shut down not long after that. I didn't know about Newegg yet, so when I found out they existed, I immediately assumed Egghead had rebranded or reopened or something. I sometimes feel like I'm the only person who went through this.

[psyience]

I used newegg as a young man in the early 2000's. There was nothing like it. The prices, the help with specifications. A lot of young kids don't realize back then the current generation of computers could have 1 of like 5 different kinds of RAM. Computer parts have been way more universalized since then, 1 kind of RAM, PCI Express, and then just matching the cpu socket to the board. It used to be way more complicated.