Newegg Investor Relations Presentation

March 2024

Confidential 1
Disclaimer

This presentation of Newegg Commerce, Inc. (the “Company,” “Newegg,” “we,” “us,” or “our”) includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking
statements. These statements include statements or assumptions about our plans, strategies, financial performance, financing plans, prospects, capital structure, cash flow, liquidity, goals and objectives for
future operations, growth or future events. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. These
statements may be identified by the use of words like "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "will", "should", "seek" and similar expressions and include any projections or
estimates set forth herein. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management team, are inherently
uncertain. A more complete description of these risks and uncertainties can be found in the Company’s filings with the SEC available for free at www.sec.gov. We caution you not to place undue reliance on any
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This presentation contains financial information prepared in accordance with U.S. generally accepting accounting principles (“GAAP”) that have been extracted without material adjustment from audited GAAP
financial statements and/or extracted or derived from unaudited accounting records that have been used to prepare GAAP financial statements. This presentation also contains certain non-GAAP financial
measures which have not been and will not be audited. These non-GAAP financial measures are not recognized measures of financial performance or liquidity under GAAP, but are measures used by Newegg’s
management to monitor the underlying performance of Newegg’s business and operations. These non-GAAP measures may not be indicative of Newegg’s historical operating results nor are such measures meant
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non-GAAP financial measures. Certain financial information contained herein is unaudited and is based on internal records and/or estimates.

Market and competitive position data in this document has generally been obtained from industry publications and surveys or studies conducted by third-party sources. There are limitations with respect to the
availability, accuracy, completeness and comparability of such data. The Company has prepared this presentation based on information available to it, including information derived from public sources that have
not been independently verified, and no assurance can be given of its accuracy or completeness. Certain statements in this document regarding the market and competitive position data are based on the
internal analyses of the Company, which involve certain assumptions and estimates. These internal analyses have not been verified by any independent sources and there can be no assurance that the
assumptions or estimates are accurate.
 Newegg Investor Relations Overview

1 Who we are

2 Our strategy and operations

3 2023 financial information

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Our Vision: Provide Leading E-Commerce Platform Dedicated to Technology
NEWEGG: WHERE TECH EXPERTS GO TO BUY TECHNOLOGY

TECH

We popularized the PC-building We are the largest e-commerce

movement and developed a cult company primarily focused on
following among PC and DIY direct sales and marketplace
enthusiasts platform for IT computer
components

VERTICAL E-COMMERCE PEERS

AUTO PET HOME

Vertical category leaders achieved scale by serving vendors, sellers and customers in their vertical markets
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Newegg is a Trusted Retailer in a Large, Growing Electronics Market

Global Electronics/eCommerce Market ($Billion)

Source: Statista Market Insights as of 2023/10

Business Overview At a Glance

Business Direct Online Marketplace

Model and Platform
Sales

Networking
Product Systems & Electronics for
Gaming and Smart Software
Categories Components Automotive
Home

Business
Properties
Newegg’s Reputation & Scale
❖ #1 Web-only Consumer ❖ Best Online Stores to Buy PCs ❖ Newsweek's America's Best
ACCOLADES Electronics e-Commerce
company in North America
and Electronics in 2023, Readers’ Online Shops 2023 (Consumer
Choice, by PC Magazine Electronics)
According to Digital Commerce
360

FINANCIAL

$1,265 Million $1,041 Million $390 -$17 Million

2023 YTD Q3 GMV 2023 YTD Q3 Net Sales Average Order Value 2023 YTD Q3 Adjusted
EBITDA

SCALE

29% 2.5 Million 4.8 Million+ 6.2 Million+

Repeat Purchase Rate Active Customers Reviews SKUs
(FY 2023)

Sources: #1 Web-Only CE Category – Digital Commerce 360; Best Store to Buy PCs and Electronics in 2023 – PC Magazine; America’s Best Online Shops - Newsweek
Note: Average Order Value, Repeat Purchase Rate, Active Customers, Reviews as of FY 2023. SKU count as of 12/31/23.
Investment Thesis

TECHNOLOGY CATEGORY LEADER HOLISTIC E-COMMERCE ECOSYSTEM

1 ▪ Longstanding partnerships with top-tier industry brands
2 ▪ Continuously evolving tech platform with cutting-edge
in the IT vertical AI technology
▪ Personalized shopping tools designed exclusively for ▪ Diverse and enriched service offerings create a value
tech enthusiasts chain ecosystem connecting Asia and North America.

EVOLVING BUSINESS MODEL LARGE MARKET WITH GROWTH DRIVERS

3 ▪ Started as a direct online retailer and reached scale
4 ▪ Global electronics eCommerce market with a 12% CAGR
▪ Expanding into marketplace & partner services ▪ Market demand driven by innovation, advancing
technology, and AI-enabled products

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 Newegg Investor Relations Overview

1 Who we are

2 Our operation and strategy

3 2023 financial information

9
 Operational Evolution

2001–2011 2012–2018 2019–2023 2024–BEYOND

BEGAN SELLING POPULARIZED THE TRANSFORMATION IN LOOK AHEAD FOR NEXT-

PC COMPONENTS PC-BUILDING MOVEMENT PROGRESS LEVEL TRANSFORMATION

• Founded Newegg • Launched Shipped by • Launched Strategic • Expand latest & greatest product
• Launched Canada website: Newegg (SBN) Partnership Program to portfolios, including growing
newegg.ca • Launched Marketplace for enhance collaboration opportunities in AI-related products
• Launched B2B website: B2B and Canada with vendors/suppliers • Further evolve and grow Newegg Partner
neweggbusiness.com • Received an Investment • Expand Newegg Partner Service program offering end-to-end
• Launched a Marketplace from Liaison Interactive Service program service solutions tailored to overseas
and International Seller • Expanded Globally to 20+ • Launched innovative tools, brands
Program Countries, including China programs, and services to • Implement automations that enhance
deliver superior customer business operation efficiency
experience • Introduce transformative tech upgrades
powered by AI technology
• Create a media presence on social
platforms to meet younger consumers
where they are. 10
Newegg Connects Electronics Vendors Directly to Consumers
▪ Robust network of platforms and services with a reach into 20+ countries, for NEWEGG’S IT & DISTRIBUTION PARTNERS
two decades

▪ Longstanding relationship with Tier 1 vendors

− Newegg’s marketing team collaborates with partner (vendors) to
target demographics, bridging customers and suppliers for
enhanced engagement and product enhancement.
− End to End integration through API, Automation
NEWEGG VENDOR PORTAL

Customer Reviews Self Service

▪ Newegg Vendor Portal is an online product
and order management entry for various
industry manufacturers, distributors, and
dropship vendors who have or are willing to
have partnerships with Newegg.com and its Batch Process Order Management
affiliates
▪ Vendors have access to the portal 24 x 7 via a
secure login
Contract Management Report Center

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Newegg Provides a Host of Service Solutions For Marketplace Sellers
▪ We leverage years of experience in eCommerce businesses to provide brand MARKETPLACE BRAND SELLERS
owners and resellers with diverse seller platform services spanning across
borders and regions.

▪ Leveraging AI, our solutions extract key data points from cross-channel sources
and deliver insights to help seller enhance sales performance and boost
customer engagement.

NEWEGG SELLER PORTAL

Revenue-Driving Unique Brand-Building

Marketing Services Support
▪ Newegg Seller Portal is an online portal that offers
effective marketing and merchandising programs which
help grow sales. Cost-Saving Logistics Early-Adopter
▪ Seller can use the Newegg Seller Portal to access easy Programs Customers
deal submissions, automated item promotions, and
customizable shipping options at the item level, all
integrated into one platform. Customer Service - Dedicated Seller
For Any Issue Managers

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 Newegg Ecosystem to Serve Tech Vendors, Sellers & Consumers

GLOBAL LOGISTICS SERVICE CONSUMER E-COMMERCE PLATFORM LOCAL LOGISTICS SERVICE

Support Global Sellers/Vendors with door-to- Purpose-built to serve tech enthusiasts Support Global Sellers/Vendors with
door Shipping to North America as well as the average consumer comprehensive Logistics to end
Customers in North America

Vendors,
Distributors & / / PC Builder /
Gaming PC NAS Builder / Consumers
Seller Finder Nor th American Pick & Pack T r ansportation &
I n bound Goods War ehouses L ast Mile Delivery
War ehouse Con solidation
I n ternational
Ocean/Air Freight

INTE RNATIONAL LOGISTICS M emory Finder Laptop Finder PS U Calculator LOCAL LOGISTICS TRA NSPORTATION
▪ On-demand warehouse in China ▪ 4 Wa rehouses in North America ▪ S m all Parcel
▪ S t orage ▪ 1.2M Square Feet ▪ Truckload
▪ Goods Consolidation ▪ Full Cycle Logistics ▪ Int ermodal
▪ E xport Processing
▪ Int ernational Shipping

Seller Direct Order Fulfillment

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Scaled Logistics Infrastructure With Automation To Support Continued Growth

KEY FEATURES

▪ Reliable and efficient B2C and B2B order fulfillment with proprietary warehouse management
software and automated order picking system. New advanced robotic order picking systems
(AMR) has been fully implemented in Newegg’s Ontario, CA warehouse
▪ Optimized inventory locations for cohesive customer experience with strategic warehouse
locations and proprietary inventory balancing software
▪ Flexible and cost-effective shipping options through both small parcel and heavy freight,
including LTL shipping, truckload shipping, intermodal shipping, rail freight, expedited, and
international shipping 1
▪ Customized value-added services offering storage, packaging, customer return, and light repair
▪ Integrated with most major e-commerce platforms and service providers for fast client
integration
Geek+ AMR Picking System Features
Investment $1.6MM
Inventory Location Capacity 24,000+
FULL-SERVICE LOGISTICS SOLUTIONS KEY METRICS Fulfillment Throughput Capacity 10,000+ packages per shift
Warehouse Footprint Requirement 60%+ reduction
▪ Warehousing and Fulfillment Solutions Same-Day Fulfillment Rate 99%+ Operations Efficiency 30%+ improvement
System Scalability Plug n play
▪ Transportation Services
2-Day Ground Coverage 96%+
▪ Reverse Logistics INTEGRATION PARTNERS:
▪ Value-Added Services Inventory Accuracy 99%+

1 Note: Newegg partners with dependable national and global carriers to cater to all service levels and packaging sizes
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Newegg Media Service Builds Brands

Shoppable Social Content Influencer / KOL

Livestreams Campaigns

Vendors and Sellers Use Newegg Media to Produce

Engaging Content that Tech Enthusiasts Love

• Video content educates, entertains, and engages a

younger audience YouTube & Video Product Commercials
• Programming is funded by tier-one vendor Content Demonstrations
sponsorships
• Resource offering for Asia-based sellers wanting to
build trust with US consumers with content marketing

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Transform Customer Experience with AI Innovation
PC Builder AI Shopping Experience
Integrated with ChatGPT/NPL AI technology, Newegg PC Builder allows customers to
interact in a more natural way and generate two million build lists from customer queries as
of Feb 2024

Review Bytes
Using ChatGPT, Newegg integrated AI-review summaries of customer reviews, beating Amazon to it
by 1 week. The PR was the largest in Newegg history by UVM.

E m a il M a r ket ing
Email Promotion
Using ChatGPT to auto-generate email subject lines tied to daily promotions, increasing
website traffic and email GMV significantly.

D ig it a l M a r ket ing

SEM Content Generation

Powered By AI Leveraged OpenAI to boost SEM content, keywords, ad optimization & data analysis. Achieved
improved campaign performance and better business results.

AI-Powered Image Providers

Applied AI to automate image processing, including background generation, content
recognition, and creation of promotional visuals.

Newegg AI Shopping Assistant

AI-powered shopping assistant providing end-to-end ecommerce capabilities including optimized product
search & comparisons, personalized recommendations, real-time order and delivery tracking,
warranty/discount sourcing, and competitive price matching.
Growth Drivers With Respective Initiatives

1. ENHANCE LOGISTICS 3. GROW FINISHED TECH PRODUCTS

INFRASTRUCTURE & SERVICES
Diversify and expand sales channels for
3PL services
broader market reach
Cross border service solutions Expand AI-enabled product portfolio,
Logistics network spanning servers, AI PCs.

2. GROW 3rd PARTY

4. DRIVE MARKETPLACE
PLATFORM SALES Platform
Brand amplification Catalog diversification
Additional sales avenue Scale-up seller base
New customer segment acquisition Holistic service solutions

5. ENHANCE TECH INFRASTRUCTURE

Business and operation automation

Big data applications

AI-driven analytical capabilities 17

Newegg Investor Relations Overview

1 Who we are

2 Our operation and strategy

3 2023 financial information

18
2019 – 2023 Financial Overview

* Actuals as of September 30, 2023 (unaudited) plus 2023 Full Year Guidance (High End)
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As of September 30, 2023 2023 Ful l Year Guidance (High End)
2019-2023 Summary
Newegg has experienced significant volatility in consumer demand during the pandemic and post-pandemic period.

During the pandemic, Newegg experienced a sudden surge of demand for IT/CE products, leading to an all-time high of $3.0 billion GMV for fiscal year 2021.

Post-pandemic, Newegg faced a slowdown in demand due to shifts in consumer behavior, return to office mandates, and delayed upgrade cycles as a result of pandemic-driven
purchasing. We temporarily experienced excess inventory levels, but were able to quickly correct the issues and maintain healthy inventory levels to achieve break-even Adjusted
EBITDA in 2022.

2023 inflation, demand remained slow due to overall economy, inflation, and high interest rates. Management team took swift actions to right -size the company
through cost reductions.
o Comparing full-year 2019 to 2023:
▪ GMV is expected decline 8.8%, mostly driven by declines in our marketplace business.
▪ Gross margin % is projected to increase by 1.0%; gross margin dollars projected to increase by $2.7M
▪ Additionally, we streamlined business processes and optimized headcount to create a projected reduction of$18.4M in comp and benefit expense.
▪ We reduced external marketing expenses by 50% and brought marketing efforts in-house by establishing Newegg Media.
▪ We focused on higher margin service revenue in fourth quarter of 2023, which we expect will continue into 2024.
▪ At the same time, we consolidated warehouse locations and implemented robotic picking process with Geek+. This resulted in approximately $600K of savings per month and is
expected to result in a projected annual savings of approximately $7.2M in 2024.

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2023 Full Year Guidance

The Company previously issued the following guidance on December 22, 2023:

• GMV to be between $1.78 billion to $1.83 billion

• Net Sales to be between $1.42 billion to $1.47 billion

• Gross Profit to be between $160.0 million to $165.0 million

• Net loss to be between $56.0 million and $60.0 million

• Adjusted EBITDA to be between $(21.0) million and $(25.0) million

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