I’d bet that most of this site’s readers have heard of Newegg.  It’s one of the most popular and price competitive online retailers of consumer electronics and technology products.  In fact, it’s pretty much single-handedly responsible for my recent online shopping price comparison complacency.  Since it consistently offers the lowest prices including shipping on tech products I buy, I’ve started “sole sourcing” Newegg rather than comparison shopping when I need to buy something (such as these).  I once ordered something from Newegg in the early afternoon, paid for standard ground shipping, and had the item on my door step the following day.

Interestingly, Newegg today filed for an IPO valued at $175 million.  The company did a staggering $2.1 billion in sales in 2008 but, as expected, had an extremely thin profit margin of only 1.4%.  The company claims yearly profitability since 2001, a testament to their highly automated business execution and low overhead, which epitomize the “high volume – low margin” business model.

Should the IPO be completed, I hope Newegg doesn’t succumb to shareholder pressures and drive up prices seeking higher margins.  I’m sure many others share my experiences with this company, which may be the very reason for it’s initial success.