May 18, 2011, 12:44 PM launches a product pick-up program for online shoppers

Customers can order online and pick up items from a warehouse in Southern California.

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Newegg Inc. today launched a service that enables its online customers to pick up products at the web-only retailer’s Southern California warehouse. Newegg, No. 12 in the Internet Retailer Top 500 Guide, says this is the first time it has offered customers a specific location where they can pick up products in person.

Customers can pick up products in as little as four hours after purchase from the warehouse, located in the Los Angeles suburb of Industry, CA. Customers can wait for a long as seven days after purchase to pick up the products. Customers can pick up products between 10 a.m. and 7 p.m. Pacific time, Monday through Friday.

Newegg says the service is free, but does not apply to products purchased from the Newegg Marketplace, where other retailers sell to visitors. The online retailer of computer gear and consumer electronics did not immediately provide more information about what products are eligible for the service. A Newegg spokesman says the retailer carries 16,000 SKUs in its Southern California warehouse.

“With the debut of will call at our California facility, we are giving both our business-to-business customers, many of whom are fulfilling mission-critical business needs, as well as all our valued customers, a way to get even more control over their online shopping experience, saving both money and time in the process,” says Bernard Luthi, Newegg’s vice president of marketing.

Up to 64% of bricks-and-mortar retailers say they offer some form of in-store pickup of non-store orders, which could be orders placed online, via a mobile device, or through a contact center, suggests a recent study from research and advisory firm Retail Systems Research LLC.  “While the on-line ordering experience may be easier and more convenient than in-store shopping, many consumers prefer to take delivery in-person, and avoiding potential theft, such as if the purchase is delivered when she is not at home,” says Paula Rosenblum, managing partner at RSR.   

But she says that while Newegg program represents a good start for the web-only retailer, retail chains have an advantage when they offer in-store pickup. “The customer that buys online and picks up in-store tends to spend more when she's actually in the store, so having some add-on sale opportunities is advantageous,” Rosenblum says.

Newegg could tweak the pick-up program to include up-selling and cross-selling, the spokesman says. "We'll be closely monitoring what products customers are using will call for and based on these findings will consider making certain complimentary products available for immediate purchase," he says.



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