Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 74

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 74
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Item 4A. Unresolved Staff Comments

None.

Item 5. Operating and Financial Review and
Prospects

You should read the following discussion and
analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and the related
notes included elsewhere in this annual report. This discussion contains forward-looking statements that are subject to known and unknown
risks and uncertainties. Actual results and the timing of events may differ significantly from those expressed or implied in such forward-looking
statements due to a number of factors, including those set forth in the sections entitled “ Risk Factors” and “ Disclosure
Regarding Forward-Looking Statements” and elsewhere in this annual report. We have prepared our financial statements in accordance
with accounting principles generally accepted in the United States (“ GAAP”).

Overview

Newegg is a leading technology-focused e-commerce
company in North America. ThroughNewegg. com, our flagship retail site, we connect our global customer base to a wide and increasing
assortment of tech products and a massive pool of brands, sellers, suppliers, manufacturers, distributors, and third-party service providers.

Headquartered in California, Newegg’s reach
is global. Leveraging our extensive fulfillment and warehousing network and the global footprint of our suppliers and sellers, we are
able to offer merchandise sourced from over 30 countries and regions to customers located in 20 countries and regions and deliver customer
services in multiple languages.

Newegg’s Business Model

GMV is the primary driver of our net sales, as
we derive a significant majority of net sales from the GMV transacted on our online platforms, net of cancellations and returns. We define
GMV as the total dollar value of products sold on our websites and third-party marketplace platforms, directly to customers and by our
Marketplace sellers through Newegg Marketplace, net of returns, discounts, taxes, and cancellations. GMV also includes the services fees
charged through our Newegg Partner Services in rendering services for our 3PL, Shipped-by-Newegg (“ SBN”), shipping label service
(“ SLS”), staffing and media ad services, as well as the sales made by our Asia subsidiaries. We generate GMV and net sales
primarily from the following sources:

  Direct sales, where we control inventories sourced from suppliers and directly sell goods to our customers on our platforms or certain other third-party platforms. Our direct sales revenues inc...  

  Newegg Marketplace, where third-party sellers sell products through our Newegg