Electronics e-retailer Newegg opens a showroom in Canada

July 14, 2016 11:49 AM

A new facility in Ontario, Canada, opens Friday and will allow Newegg Inc. customers to pick up orders and view some of the e-retailer’s latest tech products.

The showroom, called the Hybrid Centre, is the first of its kind in Canada and is Newegg’s latest move to expand its reach in the region. The showroom will display such items as virtual reality products and home automation systems.

Newegg, No. 17 in the Internet Retailer 2016 Top 500 Guide, is a web-only retailer of computer components and other technology products. It also operates an online marketplace, allowing other merchants to sell directly on All products displayed in the Hybrid Centre will be from Newegg’s inventory, not products from its marketplace sellers, Newegg says.

The facility is 81,000 square feet and includes a warehouse that processes up to 2,000 web orders daily, the company says. Customers will be able to pick up online orders at the facility, but they will not be able to place orders on location.

Newegg has another Hybrid Centre in Los Angeles across from its global headquarters. In addition to acting as a pickup point for customers, the Southern California facility hosts video game tournaments and other tech activities. The Canadian Hybrid Centre will be modeled after the Los Angeles location, CEO Danny Lee says.

“We intend to model much of what we’ve done in Los Angeles, while also looking at ways to leverage the facility to offer region-specific activities to benefit customers in the Toronto area,” Lee says of the new site. “Canadian customers play a vital role in our North American business, and this new Hybrid Centre stands as a testament to our commitment to put down roots in Canada to serve those customers more directly.”

The total value of goods transacted on the retailer’s site, including the sale of Newegg’s own inventory and its marketplace sellers, was $2.85 billion in 2015. Newegg is one of several retailers in the Top 500 that have opened their e-commerce sites to other merchants. Others include Wal-Mart Stores Inc. (No. 4), Sears Holdings Corp. (No. 14) and Bluefly Inc. (No. 223). Read more about these marketplaces, as well as others such as those operated by Amazon and eBay Inc., in the newly released online marketplaces report: “Online Marketplaces: The Shopping Mall of the Future.”




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