Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 68

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 68
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 have built our technology platform by relying
primarily on software and systems that we have developed in-house and, to a lesser extent, on third-party software. Our technology infrastructure
is designed for scalability and reliability to support business growth. We utilize high-availability clusters comprising groups of servers
to provide sufficient redundancy and maintain continued service in the event of single point server failure due to hostile attacks, systematic
errors or other reasons. Our high-availability data system is designed so that back-up servers instantly connect to our network once master
servers experience technical difficulties.

We currently have two co-location data centers
at facilities in Los Angeles, California and New Jersey to provide redundancy for our e-commerce data. We maintain approximately 834 servers
stored in our data centers and approximately 197 network devices. Our IT infrastructure enables us to support over 200 million page views
per day and provides the capability to process up to 1.45 million orders per day. Our platform obtained PCI Level 1 certification in 2010.

Our IT Capability

  Websites. Our website                                                                                                               

  Mobile site and apps.                                                                                                           

  Data and analytics. Data                                                                                                             

  Inventory management. Our                                                                                                            

  Transaction management. We                                                                                                           

  Fulfillment management. We                                                                                                         

  Anti-fraud monitoring.                                                                                                               

Research & Development Team

Our global research and development team is focused
on innovation through software development, algorithm design and development, and IT infrastructure design and maintenance. Our research
and development personnel continually upgrade our platforms and test new features to improve our customer experience. Our research and
development team also develops custom-built proprietary systems and engages third-party solutions to support our specific customer, vendor
and Marketplace seller requirements, including handling heavy traffic on our platforms, and providing quick and efficient fulfillment
services to meet customer expectations.

Security and Privacy Policy

We are committed to protecting information security
across all Newegg platforms. We use a variety of techniques to protect the integrity of our networks and the confidential data we collect
and store. Confidential information concerning our customers, sellers and suppliers is encrypted and protected using SSL encryption software.
In addition, we use multiple layers of network segregation and hierarchical levels of firewall technology to protect against attacks or
unauthorized access to our networks, servers, and databases. We also continue to build new procedural safeguards as part of our comprehensive
privacy program. We operate in a secured and locked facility that requires all of our employees to check in and wear valid ID badges.

We have adopted a