Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 75

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 75
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 Marketplace, and we recognize commission and service fees from such third-party sellers in our net sales. The publ...  

  Newegg Partner Services (“ NPS”), where we generate net sales primarily by charging service fees for a range of e-commerce services and solutions rendered to our vendor partners, Marketplace se...  

Factors Affecting Newegg’s Results of
Operations

Our financial condition and results of operations
have been, and will continue to be, affected by a number of important factors, including the following:

Newegg’s ability to grow our customer
base and increase their engagement level

We monitor the following key operating metrics
to evaluate our user traffic and the engagement of our customer base.

                                      For the Year Ended                                                                  
                                      December                                                                            
                                      31,                                                                                 
  Key Operating Metrics:              2024                              2023                       2022                   
  Number of active customers (1)      2.1 million                       2.5 million                2.7 million            
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  Repeat purchase rate (2)                                    26.0                       29.2                       31.3  
  Average order value (3)             $                        396      $                 379      $                 411  

Note:

  Active customers as of a given date are calculated by unique customer ID with at least one transaction purchased on our platforms during the relevant 12-month measurement period.  
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  Measured by the percentage of customers who made at least two purchases on Newegg platforms during the relevant 12-month measurement period.  
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  Calculated by dividing sales volume by number of transactions during the relevant 12-month measurement period.  
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We use the above operating metrics to measure
our overall customer engagement with our platforms. Our operating metrics vary from time to time due to factors including economic trends,
new product releases, the level of competition we face, and the purchase patterns of our customers. The number of active customers, repeat
purchase rates, and average order value are indicators of the size and engagement of our customer base.

Newegg’s product mix

We offer a wide range of technology products from