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

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 20
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 Such policies could result in increased production
costs including higher energy and raw materials prices, which could negatively impact our financial condition and results of operations.
New and evolving regulations on climate and emissions disclosures could cause our expenses to increase.

It is difficult to assess the likelihood of such
threats and any potential impact at this time. Any one or more of these events may impede our operation and delivery efforts and adversely
affect our sales results, or even for a prolonged period of time, which could materially and adversely affect our business, financial
condition, and results of operations.

We depend on our vendors to source sufficient
quantities of merchandise on favorable terms. If we fail to maintain strong vendor relationships or if our vendors are otherwise unable
to supply products that meet our standards in a timely manner, our net sales and net income could suffer.

Our contracts or arrangements with vendors generally
do not guarantee the availability of merchandise or provide for the continuation of particular pricing or other practices. Our vendors
may not continue to sell their inventory to us on current terms or at all, and, if the terms are changed, we may not be able to establish
new supply relationships on similar or better terms. In most cases, our relationships with our vendors do not restrict them from selling
their products through our competitors. Newegg competes with other retailers for favorable product allocations and vendor incentives from
product manufacturers and distributors, including but not limited to marketing dollars and volume-based sales incentive programs. Some
of our competitors could enter into exclusive or favorable distribution arrangements for certain products with our vendors, which would
deny us complete or partial access to those products and marketing and promotional resources. In addition, some vendors whose products
are offered on our online platforms also sell their products directly to customers. If we are unable to develop and maintain relationships
with vendors that permit us to obtain sufficient quantities of desirable merchandise on favorable terms, our business, financial condition
and results of operations could be adversely impacted.

Our relationship with any particular vendor is
dependent on our sales of products manufactured or distributed by that vendor. For certain products, we do not currently, and in the future
may not be able to, meet the sales volumes or other requirements necessary to receive favorable treatment from the vendor of that product.
As a result, we may not receive favorable pricing, vendor incentives or other considerations from those vendors. During times of short
supply for highly desirable products, we may not receive adequate, or any, allocation of a popular product, leading to lost sales and