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Newegg.com is blazing a new trail of distribution products—and VARs are following it. The privately held company, which says it has more than $1.5 billion in sales, has surged to the forefront of distribution. In doing so, Fred Chang has positioned the company as a viable alternative to the likes of Ingram Micro, Tech Data and Synnex.
Chang's secret? Price and availability.
While other broadline distributors have expanded their portfolios to include specialized support and add-on services, Chang and Newegg have stuck with the basics. And VARs have responded. Earlier this year, Newegg grabbed the top spot as an alternative source of products on CMP's Channel Sourcing Study.
Newegg is a very successful online e-tailer. It stocks a big breadth of products so that everyone from the gamer to the stay-at-home-mom to the IT support guy are among its customers on a given day.
What's truly innovative is how Newegg promotes Web site traffic, by encouraging visitors to join its eggxpert community and using forums, blogs and newsletters. With more than 8 million registered customers, it must be doing something right.
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