Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 59

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 59
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 fitness enthusiasts, home appliances and smart home automation solutions, as
well as software, networking equipment, gaming accessories, home office furniture, headphones and portable devices, home video systems,
cell phones, home audio, and surveillance products.

Our B2C customers consist primarily of sophisticated
IT professionals, gamers, do-it-yourself technology enthusiasts and early technology adopters who generally occupy a well-educated, affluent,
and IT trendsetting demographic with relatively high purchase frequency and strong willingness to embrace technology trends and try new
products. We believe our success is built upon our ability to cater to the preferences, tastes and habits of this demographic. As of December
31, 2024, we served customers in the United States, Canada and 18 additional countries and regions through our Newegg. com, Newegg. ca and
Newegg Global platforms. For details of these platforms, see “ - Our Platforms - B2C Platforms.” Our B2C operations
generated GMV of $1.2 billion and $1.4 billion for the years ended December 31, 2024 and 2023, respectively.

B2B

With a focus on providing office and IT equipment,
NeweggBusiness. com offers our B2B customers access to our extensive product assortment and account managers with expertise in sourcing
technology for business and processing industry specific requirements. Our B2B operations generated GMV of $248.1 million and $325.6 million
for the years ended December 31, 2024 and 2023, respectively.

Our B2B customers span across a range of verticals,
including healthcare providers, K-12 and higher educational institutions, government agencies, and businesses of all sizes, and our B2B
operations have been focused on providing specialized support for their industry- and business-specific needs.

Currently, while we position NeweggBusiness. com
as our dedicated B2B website, a significant number of our B2B customers also shop via our account managers, or on our flagship retail
platform, Newegg. com. See “ - Our Platforms - B2B Platforms” for more information about these platforms.

How We Deliver Our Service

We sell products to our B2C and B2B businesses
through direct sales and Marketplace.

Direct Sales

We acquire products directly from our partners
that consist of manufacturers, distributors and wholesalers, and sell them directly to our B2C and B2B customers. For our direct sales,
we generally source the products, take inventory risk,