Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 61

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 61
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son and Lenovo.

While we encourage Marketplace sellers to offer
the most attractive prices, they have the flexibility to price the products sold through our Marketplace. Due to our partnership, unique
customer base, scale and large visitor traffic, some of the Marketplace sellers also set aside exclusive offers, promotion, and product
supplies for us and offer some of the best offers tailored specifically to our customers. We have a rigorous process in place to assess
our Marketplace sellers. We select Marketplace sellers based on a number of factors, including service level, logistics capability, operational
efficiency, category focus, sales volume, brand assortment, customer rating and market reputation. We also require third-party sellers
to meet our strict standards and protocols in terms of product authenticity, customer service, and delivery and fulfillment so that customers
are confident that they receive the same level of buying experience and customer service that they expect when buying directly from us.
To help deliver a high-quality customer experience, we utilize a variety of quality control and fraud prevention techniques in order to
identify and remove non-conforming products and sellers from our Marketplace. See also “ - Customer Service and Support - 
Marketplace monitoring.”

Merchandise Sourcing

As of December 31, 2024, we offered approximately
4.4 million SKUs across our platforms, consisting of over 73,500 direct sales SKUs sourced from at least 310 suppliers globally and approximately
4.3 million SKUs on our Marketplace from over 5,200 third-party sellers globally. As of December 31, 2024, approximately 60.0% of our
direct sales inventory was purchased directly from manufacturers, 35.6% from distributors and 4.4% from other sources. As of December
31, 2024, the 10 largest suppliers, whom we have worked with for over a decade, accounted for 68% of the merchandise we purchased for
direct sales.

The table below shows our major product categories
offered through our platforms and their selected featured brands:

  Category             Products                                                                                                                 Selected Featured Brands                                                                       
  Computer System      Desktops, laptops, gaming laptops, peripherals and accessories                                                           Asus, MSI, HP, Lenovo, Acer, Microsoft, Samsung, LG, Gigabyte, Logitech                        
  Components           CPU/processors, graphic cards, motherboards, storage devices and computer accessories                                    Intel, AMD, Asus, MSI, Corsair, Gigabyte, ASRock, Western Digital, Seagate, Samsung, G. Skill