Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 70

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 70
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 fulfillment and logistics
services for themselves or for third parties, whether online or offline; and (iv) companies that design, manufacture, market, or sell
consumer electronics, telecommunication, and electronic devices.

We believe the principal competitive factors in
our market are:

  breadth and quality of product offerings;  

  pricing;  

  fulfillment capabilities;  

  brand recognition and reputation;  

  customer service;  

  ability to respond more quickly to changing consumer preferences;  

  ability to reach a geographically broader set of customers; and  

  ability to be more flexible in marketing to a specific set of potential customers.  

Some of our current and potential competitors
have greater resources, longer histories, more customers, greater brand recognition, and greater control over inputs critical to our various
businesses. They may secure better terms from suppliers, adopt more aggressive pricing, pursue restrictive distribution agreements that
restrict our access to supply, direct consumers to their own offerings instead of ours, lock-in potential customers with restrictive terms,
and devote more resources to technology, infrastructure, fulfillment, and marketing. Each of our businesses is also subject to rapid change
and the development of new business models and the entry of new and well-funded competitors. Other companies also may enter into business
combinations or alliances that strengthen their competitive positions.

Our principal market is in the United States,
where we compete with retail stores and resellers, including superstores such as Best Buy, Costco and Walmart, hardware and software vendors
that sell directly to end users, online retailers such as Amazon, and other marketers and resellers of IT/CE products.

See also Item 3 under the heading “ Risk
Factors,” the subheading “ Our business faces intense domestic and international competition.”

Seasonality

Our business performance is subject to seasonal
fluctuations. We have undergone and expect to continue to undergo an increase in activity during the year-end holiday period. These seasonal
effects cause differences in revenues and expenses among the various quarters of any financial year, which means that the individual quarters
should not be directly compared with one another or be used to predict annual financial results. This intra-year seasonal fluctuation
in demand is in accord with historic experience in the retail and e-commerce industries, with increased volumes during the fourth calendar
quarter of the year.

Government Regulations

We are subject to U. S. federal and state consumer
protection laws, including laws protecting the privacy of customer personal information and regulations prohibiting unfair and deceptive
trade practices. Other existing and future laws cover issues