Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 67

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 67
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 significantly from word-of-mouth referrals
and positive product reviews, and we believe our reputation as a one-stop - technology shop has led to strong word-of-mouth promotion,
especially among the technology-savvy. We have efficient customer acquisition strategies, because the majority of our web traffic is free.
Free traffic includes mobile apps, email & SMS, social media, and brand mentions, reviews and shares. Paid traffic includes affiliate
marketing, sponsorships, social media influencers, and paid searches. In 2024, 88% of traffic was free, as compared to the paid traffic
of 12%.

Online Marketing

We conduct the majority of our marketing efforts
online through targeted marketing via affiliates, search engines, promotional emails, social media traffic, targeting and personalization,
and online promotion campaigns.

  Paid search engine marketing. Search engine marketing is an important driver of our traffic and customer acquisition. For the year ended December 31, 2024, our spending on paid search engine ma...  
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  Affiliate marketing. We also engage in affiliate marketing programs where we offer affiliated websites commissions for sales resulting from directing customer traffic to our websites through em...  
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  Personalized email marketing efforts and customer retargeting. Our personalized email marketing efforts and customer retargeting strategies are based on customers’ on-site behavioral data and p...  

  Other online marketing channels. Other online marketing channels include click-through based advertising on publishers’ sites, targeted messages, email distribution, banner advertisements on hi...  

Offline Marketing

We also devote marketing resources to various
offline formats, including hosting or exhibiting at live events, including trade shows, conferences and various industry and consumer
networking events.

Technology

Our technology systems are a critical component
of our success and designed to enhance efficiency and scalability. Our research and development team, coupled with our proprietary technology
infrastructure and the large volume of data generated and collected on our platforms, has created opportunities for continuous improvements
in our technology capabilities, empowering reliability, scalability, and flexibility. Our technology strategy is to develop our own proprietary
software and license technologies from third parties as appropriate in order to simplify and improve the shopping experience, as well
as facilitate our fulfillment, financial and customer service operations.

IT Infrastructure

We