Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 56

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 56
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 of issued and outstanding
common shares immediately prior to Share Combination was reduced such that every twenty shares of common shares held by a shareholder
immediately prior to the Share Combination were combined and reclassified into one common share par value $0.43696 per share. Fractional
shares resulting from the Share Combination were settled by cash payment.

Options, and other like awards, to purchase the
Company’s common shares were also proportionately adjusted in accordance with their terms to reflect the Share Combination.

All common share amounts and per share numbers
discussed herein have been retroactively adjusted for the Share Combination.

  Business Overview  
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The Newegg Ecosystem

Founded in 2001, we have developed a technology-focused
e-commerce ecosystem that enables all of our participants to discover, engage and transact with each other. We take pride in connecting
customers to a wide and increasing selection of technology products and a large range of brands, sellers, suppliers, manufacturers, distributors
and third-party service providers.

We have developed a powerful online marketplace
that delivers value to consumers, brands and sellers in the technology products sector. Our new product and service introductions are
aimed at continually improving our value proposition to these key constituents of our ecosystem and marketplace. For consumers, on the
demand side, we provide access to a vast, yet curated selection of technology products sourced globally. On the supply side, we create
value for brand partners, Marketplace sellers and suppliers by connecting them to one of the largest audiences of technology product consumers
online. Additionally, our platforms offer a comprehensive suite of e-commerce solutions, including product listing, fulfillment, marketing,
customer service and other value-added tools and services.

Key Ecosystem Participants and How We Create
Value for Them

There are three key participants of our ecosystem:
customers, Marketplace sellers, and brand partners.

Customers

We have built a large, highly engaged and loyal
customer base. As of December 31, 2024, we had over 2.1 million active customers, defined as a unique customer ID with at least one item
purchased on our platforms in the past 12 months.

Our core customers include both our business-to-consumer
(“ B2C”) customers and our business-to-business (“ B2B”) customers. See “ Our Business Models” for more
information about our B2C and B2B businesses.

We believe that we offer the following compelling
value propositions to our customers:

  Wide range of technology-focused products.