Thursday, July 25All That Matters

Confronting Newegg Face-to-Face. An update from the “Newegg scammed us” video.

Confronting Newegg Face-to-Face. An update from the “Newegg scammed us” video.

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  • iamamuttonhead

    As long-time and now former NewEgg customer I have some thoughts:

    First, I was downvoted after commenting on the first video that I thought calling the NewEgg behavior a scam was hyperbolic. I was clearly wrong – there has been loads of evidence subsequently that the behavior was i now way isolated. They were (are?) scamming people with bad open-box items.

    I think it’s great that GN has kept on this and this video was particularly fantastic.

    I find it hard to believe that Steve has ever worked for a big company of any kind. The behavior of the NewEgg guys was actually pretty good. They do show the hallmarks of anyone in upper management of any relatively large company – completely disconnected from the actual business of the business.

    It’s possible that NewEgg does, in fact, change their ways. I wouldn’t bet on it. As long as they try to re-sell open box items that have been returned by the customer they will have these problems. It’s simply not going to be cost-effective to test many of the items they sell (think about the time it would take to test a motherboard – unpack, install, test, uninstall, re-pack, etc.). Companies like NewEgg need to eat the cost of open returns. That means we will pay a few percent more for each item.

  • FlockingSheep

    Newegg used to be so good before they sold out the company.. my first build had parts all from Newegg when they didn’t charge tax like Amazon.

  • IrVantasy

    The damage control is astounding. I feel like small customers are going to get screwed again though.
    I hope they prove me wrong.

  • BobLoblaw_BirdLaw

    My god these YouTubers are insufferable. Dragging out this newegg shit for weeks milking it for views and money. Enough already, stop promoting your petty drama shit here every week

  • Honda_TypeR

    Actions speak louder than words. The open box return policy they added is nice, but that’s only a small start. Much more is needed.

    Only time will tell how seriously they took this video. My guess is they will gently play along as cooperative until the hype of this incident dies down, then they will go back to the status quo. I’d like to be wrong though. I used to love newegg 20 years ago.

  • gizmostuff

    I’m just spit balling here but if Newegg is constantly having the same issues, i.e. customers are receiving open box items when they ordered new, which should never happen imo; maybe they should not have their RMA HQ in the same building as the new products…

    I also thought there were too many execs in that room; maybe let one of them go and give the customer service reps a raise and also give them a bit more power on how to handle returns. The longer they are in communication resolving an issue with a customer, the less likely said customer will return for repeat business.

    The last time I bought from Newegg was in 2014. Yikes. I don’t want Amazon to be a monopoly either but Newegg is making it easy for them.

  • aCostlyManWhoR

    Lol GN dude: “worst case scenario you give someone fraudulent a free motherboard and I don’t think too many people would take advantage…”

    Does this loose jean wearing, long unkept hair having, unprofessional speaking hippie really think he has any idea about just how horribly selfish the average consumer is? Like he is SO far outside of his lane here, all over some shitty customer service? He’s 100% clout chasing.

  • Free_Dome_Lover

    Toxic KPI’s in action here. I know Steve isn’t a business consultant nor as far as I can tell does he have degrees in business administration. It would have been maybe poignant for him to find a neutral business consultant, professor or something to give him insights into the insides of the business decisions Newegg seems to be making here. Particularly with the KPI’s that kept on being mentioned because these are problematic in poorly run businesses.

    I wish it had been more touched on in the video but it’s a problem that I see way, way too often. KPI’s started out as a good idea to create a measurable objective that could provide insights into ways to improve your business, they were never supposed to be the goal! But of course bad managers out there turned these into checkbox items, quotas and strict requirements that make operating the business less insightful and less agile than if they had never tried implementing a KPI in the first place.

    Let’s look at a TOXIC KPI here. “Achieve below some % open box returns per department”.

    Looks ok right? It’s specific, it’s measurable it can even drive business value. But its a trash tier KPI and here is why… It doesn’t provide any business insight and is simply a checkbox for a manager’s goals. Such a KPI creates pressure to achieve it and can result in undesirable employee behavior such as rejecting open box returns for any frivolous reason, or maybe they are inclined to mark more things as “new stock” rather than open box on return as it gets the item out of the KPI’s metrics. So this of course creates issues, like what Steve experienced here. This KPI doesn’t even mention the most important person in these interactions either, it fails to acknowledge the customer who is the person whose experience should be improved by the KPI existing.

    So what would an analogous good KPI be that could actually provide actionable business insight and that is customer centric?

    “Obtain some % positive customer interaction / sentiment responses for open box returns per department”.

    This incentives the business stake holders to get customer responses so they can gain INSIGHT as to what works / isn’t working for the CUSTOMER. It gives the business data needed to improve, and grow it’s reputation as being customer centric. It doesn’t put an arbitrary number on something to make the accounting look better, it provides actionable data without pressuring employees to hit some arbitrary milestone.

    This is what is wrong with KPI’s and I bet if a Newegg exec / middle manager were to read this comment he’d be like “Yuuup”

  • KiryusWhiteSuit

    Great video.
    Time will tell if they actually change. For the moment they seem to be on the right track now. Maybe this was the kick in the teeth they needed.
    The guy did very well considering he’s only been there for 6 months.
    But it was called out that words aren’t gonna please anyone here without concrete and visible action

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