Newegg australia development plan (hogan) v1.8

2000-2015Newegg,Inc.Allrightsreserved.Confidential.
Newegg Australia Development Plan
By: Tomas Lee
Product Management Director
10 March 2015

Australia | Population Infographic 2015

Actual Q1/15 Q2/15 2020 2030 2050
GDP
GDP (US $M) 1560.6 1608 1615 1900 2200 2661
GDP Annual Growth Rate 2.7 3 2.79 2.54 2.79 2.72
Labour
Unemployment Rate (%) 6.4 6.37 6.45 5.8 5.7 6.38
Population (M) 23.13 23.63 23.73 25.76 28.83 33.15
Wages (AUD $/Weekly) 1123 1136 1140 1235 1409 1757
Prices
Inflation Rate (%) 1.7 1.6 1.7 3 3.2 3.2
Consumer Price Index CPI 106.6 107 107 113 121 131
Money
Interest Rate (%) 2.25 2.25 2.25 3.25 4.5 5.65
Government
Government Debt to GDP 28.6 30.11 31.08 34.73 30.72 30.72
Business
Business Confidence 3 3.68 2.68 2.73 2.69 2.69
Consumer
Consumer Confidence 100.7 101 98.59 94.92 102 102
Retail Sales YoY (%) 3.3 4.28 4.72 4.08 4.08 4.08
Disposable Personal Income (AUD $) 269,783 272,084 272,925 317,457 354,571 354,571
Taxes
Corporate Tax Rate (%) 30 30 30 30 30 30
Sales Tax Rate (%) 10 10 10 10 10 10
Australia | Economic Forecasts | 2014-2050 Outlook
Ref: http://www.tradingeconomics.com/australia/forecast

Australia | Type of Access Connection
30 Jun 2014
Mobile & fixed wireless 48.1
Cable, fibre, satellite & other 9.9
DSL 40.6
Dial-up 1.5
0 10 20 30 40 50
There were 12,483,000 internet subscribers in Australia at the end of June 2014. This is an increase of 1% from the end of
June 2013.
As at 30 June 2014, over 98% of internet connections were broadband. The number of dial-up internet connections
continued to decline.
Digital Subscriber Line (DSL) connections increased by 6% between June 2013 and June 2014 from 4.8 to 5.1 million
connections.
In percentage terms, fibre was the fastest growing type of internet access connection, increasing by 76% since the end of
June 2013, to 203,000 connections at 30 June 2014.
*Australian Bureau of Statistics, 8153.0 – Internet Activity, Australia, June 2014

Australia | P.E.S.T. Analysis
Political
• Net Neutrality (Telstra)
• Free Trade Agreements & stable governance
• Anti-competitive agreements
• Transfer Pricing Laws
• Short work week and labor pro
• Broadcasting Services Act 1992
• Product compliance and Labeling
• Import/Export laws
• “Made in Taiwan” Policy
Economic
• Slow economy growth (GDP)
• Medium skill workforce
• Low Inflation Rate
• Heavily dependable on China Export
• High yielding and highly rated assets
• Slow retail sales YoY growth
• Stable Unemployment Rate
• Average Household Income: $46k
• Market: Service > Retail
Technological
• Slow technology adopter
• IT communication & networking
• Transportation system congestion in NSW
• Quality of Postal Service
• Little innovation in business
• Poor infrastructure for Legal, Accounting, CS,
Inventory, Shipping, PM, MKTG, Payroll
Social
• Etiquette - Diverse Culture & Lifestyle
• Good sense of humour
• Equal opportunity and strong belief in
Liberty/Freedom
• Aged population & low birthrate
• Medicare and Insurance
• High cost of living
• Short General Retail Trading Hours
*Reference upon request

Australian Bureau of Statistics | Online Retail Turnover
Ref: http://www.abs.gov.au (8501.0)

Australia | Retail Ecommerce Sales | 2013-2018 Outlook
Ref:
1. http://www.emarketer.com/Article/Australian-Retail-Ecommerce-Sales-Top-10-Billion-2015/1011823
2. eBay Australia operates independently from eBay
3. Gumtree Australia is the Australia’s largest free local classified Ads site
4. OzBargin is the largest bargain hunting community in Australia
5. Bunnings Warehouse is the largest household hardware chain with stores in Australia and New Zealand
6. Amazon Australia is restrained to sell Fire & Kindle and associated products at this moment

Australia | Department of Communications | E-commerce Trends for 2014
Ref: http://www.digitalbusiness.gov.au/2014/04/08/e-commerce-trends-for-2014/
Logistic and Shipping:
• Digital Delivery Boxes located at services stations, mini-marts and other convenient places for consumers to pick
up personal items.
• Same-day delivery guarantee.
• Free Shipping with minimum purchase amount.
Personalised Shopping:
• The race is on to create computers that can see, hear, think and reason like humans but with a computer’s speed
and accuracy.
• Personalised online shopping experience.
• Targeting an individual’s preference
• Algorithms help you become your own curator
The Rise of the Micro Multinational:
• An astounding 97% of Australian commercial sellers on eBay export their products overseas.
• Become more accustomed to leveraging the internet, the volume of exports (imports) will increase.
• Small businesses will no longer be satisfied accommodating a domestic market, but expand and find a niche in a
global market.
E-Payment Solutions:
• Save time making a purchase in store, ordering ahead and digital wallets.
• Seen beyond their functional requirement to make lives easier and improve the customer experience.

Australia | Retail Trade Competition Overview
Founded Type of Ownership
Gross Sales FY14
(in AUD)
Online
Office/Showroom/
Retail Store
Alexa Global
Rank
AusPCMarket Australia Pty Ltd 1998 Proprietary Limited - PC Components/ Hardware Pick-up 409,299
City Software Group 1991 Proprietary Limited - B2B/B2C Office/ Pick-up
estore.com.au PC Components/ Hardware 183,901
Grays Ecommerce Group Ltd 1989 Public (ASX: GEG) $424.2M B2B/B2C -
Graysonline.com Online Auctioneer
16,276 (AU)
346,626 (NZ)
DealsDirect.com.au General Merchandise 27,424
Topbuy.com.au Daily Deal 63,293
oo.com.au Home & Lifestyle 34,550
JB Hi-Fi Ltd
1974 Public (ASX: JBH) $3.48B Electronics
182 Stores
(AU & NZ)
7,682 (AU)
100,439 (NZ)
Kogan Australia Pty Ltd 2006 Proprietary Limited $350M Electronics & Baby - 9,655
MegaBuy Technology Superstore 2006 Proprietary Limited - PC Components/ Hardware 1 Store 128,969
MSY Technology Pty Ltd 1997 Proprietary Limited - PC Components/ Hardware 27 Stores 28,232
Mwave.com.au 2006 Proprietary Limited - PC Components/ Hardware Office/Showroom 42,543
Techbuy Pty Ltd 1991 Proprietary Limited - PC Components/ Hardware Pick-up 78,581
*References upon request.

Australia | Recommended Retail Pricing (RRP) Comparison
Remarks:
 All price comparisons include Goods and Services Tax (GST).
 Charge for shipping and usually ships in 1-3 Days.
1 Free Delivery.
2 Newegg has the largest product assortment among all comparisons.
3 Each competition has its different degree of vendor diversification in categories.
4 Australia standard compliance required.
(in AUD$) Newegg AU2
AusPCMarket Estore1
DealsDirect JB Hi-Fi Kogan MegaBuy MSY Mave Techbuy
PC Components
Intel Pentium G3258 LGA 1150 Processor $91.29 $121.00 $110.00 - - - $88.91 $89.00 $93.99 $105.65
AMD A10-7850K Socket FM2+ Processor $195.63 $242.00 - - - - $227.78 $195.00 $204.99 $229.15
ASUS X99-A Intel LGA2011-v3 Motherboard $306.50 $429.00 $410.00 - - - $396.50 $375.00 $375.00 $431.20
GIGABYTE GA-970A-D3P AMD AM3+/AM3
Motherboard
$110.85 $149.60 $142.00 - - - $121.86 $119.00 $129.00 $141.70
G.Skill Ripjaw-X Series 8GB Kit DDR3 1600 Memory $88.68 $117.70 - - - - - $99.00 $99.00 $109.85
Corsair Vengeance LPX 16GB DDR4 2800 CL18 Memory $326.06 $462.00 - - - - $478.89 $475.00 $465.98 $536.00
Seagate Barracuda 2TB 7200RPM SATA6.0Gb/s Drive $104.33 $166.10 - - - - $115.35 $102 (5900RPM) $118.99 $126.55
Seagate Hybrid Drive 4TB MLC/8GB SATA 6.0Gb/s Drive $221.72 $292.60 - - - - $264.47 $235.00 $238.99 $288.40
Seagate Backup Plus Fast 4TB USB3.0 Portable HDD $326.06 $407.00 - - $388.00 - $735.91 - $379.00 -
Seagate 6TB 7200RPM SAS12Gb/s Enterprise HDD $652.14 - - - - - $771.82 - - $825.45
EVGA GeForce GTX 970 FTW ACX Video Card $503.73 - - - - - $538.93 $515.00 $519.00 568..00
GIGABYTE GV-N980G1Gaming-4GD Video Card $808.81 $851.40 - - - $768.00 - $775.00 - -
ASUS R7250-1GD5 Radeon R7 250 1GB Video Card $117.37 $124.30 - - - - $89.03 $105.00 $90.98 $98.65
Sapphire Radeon R9 285 2GB OC Video Card $326.06 - - - - - - - - -
Thermaltake Level 10 Titanium Limited Edition Case $1,304.29 - - - - - - $1,456.65
Fractal Design Define R4 Black Mid Tower Case $156.08 $183.70 - - - $172.47 $159.00 $137 (Titanium) $166.95
Cooler Master Storm Scout 2 White Ghost Mid Tower $141.88 - - - - $139.00 $124.36 - $129 (black) -
Corsair Carbide Series 200R Black Mid Tower Case $85.13 $104.50 - - - - $90.81 $85.00 $89.00 $95.80
Corsair CX500M 500W 80Plus Bronze PSU4 $115 (US Version) $122.10 - - - - $105.16 $89.00 $98.00 $106.25
Antec High Current Pro Platinum 850W PSU4 $299 (US Version) $319.00 - - - - - $294.00 $313.00 $321.30
Cooler Master Vanguard 750W 80Plus Gold PSU4 $142 (US Version) - - - - - $143.93 $139.00 $154.00 -
EVGA SuperNOVA P2 80Plus Platinum 1200W PSU4 $347.64 (US Version) - - - - - $377.97 $325.00 $380.98 $416.20
Samsung 850 Pro Series 256GB SSD $227.03 $251.33 - - $219.00 $213.90 $218.00 $229.00 $243.55
OCZ RevoDrive 350 PCIe 480GB SSD $1,075.58 - - - - $1,199.00 $1,160.72 - $1,219.98 $1,318.00
Intel S3500 Series 480GB 2.5" SATA6Gb/s SSD $652.72 $701.25 $527.00 $632.33 - $648.98 $689.90

Australia | PC Market | Q1 2013 - Gartner
*Ref: APAC BYOD market to continue strong growth in 2014-2015: IDC

Newegg Australia | Revenue Growth Catalysts
 Adding new customers & increasing consumer spending per cart
 Extensive & unique product assortment
 Low pricing/ Shipping strategy
 Eggcellent User Experience (UX)
 Innovative merchandising strategies
 Fast logistic and RMA services
 Merger and acquisition (M&A) activity
 Retail showrooming
 Expansion in new markets (Healthcare and Insurance)

Newegg Australia
Economy
Outlook
Talents Management
& Training
Revenue Catalyst
Cross Dept. Networking Vendor Support
Profit
Generator
Product Fulfillment
Model
Warranty
Services
Customer Satisfaction
(User Experience)
Legal
Consultation
Web Site Localisation
Brand Marketing &
Global Promotion
Hybrid Center
IT/ MIS
Infrastructure
Accounting/
Taxation
Sales
Management
System
Newegg Australia | Mind Map

Newegg Australia | Regulations and Known Issues
Displaying Prices:
Component pricing
When you present prices to your customers, you must state the total price of the good or service as a single figure, which is the minimum total cost that is
able to be calculated. This should include any tax, duty, fee, levy or other additional charges (e.g. GST or airport tax). This rule generally does not apply in
business-to-business transactions. This means you do not need to include GST if a price statement is made exclusively to businesses.
You do not need to include optional charges or extras or delivery charges – unless you are aware of a minimum delivery charge that must be paid in which
case you can chose whether to include it in the total price or as a separate component.
If you promote a price that is only part of the total price, the total price must also be displayed at least as prominently as the part price. This means that
customers should be able to identify the total price in the advertisement just as easily as prices for all the other aspects.
Credit card surcharges
Businesses can choose whether or not to pass on the cost of accepting credit card payments to their customers. However, if you decide to impose a credit
card fee, you must ensure your customers are aware—before they enter into the transaction or contract—that a fee will apply and the amount of the fee.
Advertising & promoting your business:
Managing online reviews
Offering incentives
Businesses that offer incentives to those who write positive reviews risk misleading consumers and breaching the CCA. Incentives should only be offered in
exchange for reviews of your business (its products or services) if:
• incentives are offered equally to consumers likely to be complimentary and consumers likely to be critical, and positive and negative reviews are
treated the same
• the reviewer is expressly told that the incentive is available whether the review is positive or negative
• the incentive is prominently disclosed to users who rely on affected reviews.
Star ratings
The number of reviews which form the basis of an aggregated (e.g. star) rating may be relevant to the weight which a site user gives to that aggregated
rating. If an aggregated rating system is provided, it is recommended that consumer review platforms disclose the total number of reviews that the rating
is based on next to the aggregated rating (e.g. 3 stars, 24 reviews).
Consumers' rights & obligations:
Refunds and returns signs
Signs that state ‘No refunds’ are unlawful.
The following signs are also unlawful:
 ‘No refunds on sale items’
 ‘Exchange or credit note only for the return of sale items’.
However, signs that state ‘No refunds will be given if you have simply changed your mind’ are acceptable.

Uncrewed
Landing
Fall 2018
Same Day Shipment
Guarantee
Mid 2018
Hybrid Center and Logistic
Hub at West Coast
Fall 2015
Brand, Viral and
Affiliate Marketing
Newegg Australia | Business Development Roadmap
March 2015
 Legal Entity
Registration
 Taxation & Finance
Operation
May 2015
 Global Shipping
Logistic
 Customer Service
Support
Late 2018
$40M AUD Revenue
Target
Late 2017
Newegg AU P&L
Breakeven ($26M AUD)
Fall 2016
 2 Days Shipment Guarantee
 IronEgg Price Guarantee
 Newegg Premier Membership
for Local and Global shipments
Mid 2016
 NeweggFlash
 Hybrid Center
Mid Feb 2015
Locations Survey by
OZZO
Early Feb 2015
Australia Sales Budget
Submission
Early 2017
B2B SMB Web Site
Newegg MKPL
2015 2018 2019 202020172016
Mid 2019
Newegg Express
– Sydney, NSW
Late 2016
B2B Wholesaling
Establishment
2019
 3PL Logistic
Service for
NA & China
Vendors
 ‘Service’
agent
 Trade-in
Service
Winter 2015
Talent Recruitment
and Training
Early 2016
Newegg AU Branch
Summer 2015
Product Assortment
Phase II - VF
April 2015
Web and Sales
Management Tools
April 2014
Newegg.com.au
operates
Stage I Stage II Stage III Stage IV
Orbiting
Crewed
Landing
Colonialisation

Newegg Australia | Stage I | Orbiting | April 2014
Mission:
It is to explore the business characteristics of Australia, identify all future threats and
create all necessary protocols and procedures for a successful landing. The success of
Orbiting mission will require strong collaboration of all departments.
Expected results:
Establish an internal communication token with each department, determine all required
resources and create a completed SOP check list of activities required in each stage
before Stage II | Uncrewed Landing.
Activities:
1. Project management structure (BD/PM)
2. Legal entity, Trademarks, Business/Tax ID and Patent Rights registration (LEGAL/FIN)
3. Local payment methods integration (FIN/MIS)
4. Currency exchange management (FIN)
5. Goods and Services Tax (GST)/ Income tax registration (FIN/LEGAL)
6. Shipping logistic model in Uncrewed & Crewed Landing stages (PM/OZZO)
7. Sales & marketing strategy (PM/MKTG)
8. Management software (Accounting/Sales/Marketing/Web Management) integration
9. Product portfolio and fulfillment model (PM/OZZO)
10. Web site and content localisation (WM)
11. Customer Service and RMA policy (PM/CS/OZZO)

Newegg Australia | Stage II | Uncrewed Landing | June 2015
Mission:
It is to test/pilot run the landing maneuver thru the Virtual Fulfillment (VF) and any other
remote management methods. By collecting the valuable data from the field, precise
business decisions could be made in next stage for success.
Expected results:
Newegg.com.au to launch on Oct 1st, 2015. Determine the essence of Crewed Landing in
the future Australia colonialisation project. Furthermore, the tangible risk (cost) of
operation errors should be reduced to minimum before the attempt of Stage III | Crewed
landing.
Activities:
1. Distribution Channel Partnerships
2. Virtual Fulfillment (VF) setup
3. Direct fulfillment and OPC transfer modules built
4. Crewed Landing steps of procedure (SOP) between departments
5. Manned Landing logic auditing process (BSA/BSD)
6. Re-mapping all performance under Newegg.com.au (FIN/BI)
7. Return trajectory (RMA & Customer Service) plan (PM/OZZO)
8. Inter-continental communication token establishment (IT/MIS)
9. Newegg.com.au launch vehicles and configuration (PM/MKTG)
10. Chosen the OPC Location for Crewed Landing (PM/OZZO)
11. Identify and train the elites for Crewed Landing (HR/PM)
12. Emergency escape system (PM/MKTG)

Newegg Australia | Stage III | Crew Landing | Feb 2016
Mission:
It is to utilize our best technologies and experience in constructing the permanent station
(Zero-Error Policy) for the final development stage, Colonialisation. The elite crew
members (selected from Stage II) are expected to best perform, self-support and
accomplish the final mission to return with valuable experience for future colonialisation
at other territories (countries).
Expected results:
Establish the Newegg Australia Ptd Ltd and its OPC. Thru the physical establishment, the
Newegg Australia crew shall accurately formulate, design and build up the infrastructure
to complete final mission (Being the No.1 Pure-play Online Retail Trader) within 5 years
period.
Activities:
1. Newegg elite crew assembling and Australian staffs hiring (PM/HR)
2. Vendor relationship development and management (PM)
3. Supply chain management
4. Quality of services improvement
5. Profit & Loss (P&L) management
6. Government relationship development
7. Australia’s 5-years colonialisation (Stage IV) plan

Newegg Australia | Sydney, NSW | Population Density Heat Map

Newegg Australia | Sydney, NSW |Population Density Heat Map
2
7, 8
16
17
30
20, 21
9, 10, 11
33, 34
3
8
39
40

Newegg Australia | Sydney, NSW | Housing Price Value Heat Map
2
7,
8
16
17
30
20, 21
9, 10, 11
33, 34
38
39
40

Newegg Australia | Sydney, NSW | Retail Sales Heat Map

New South Wales Property Options
January 2015
NO. Name Address
Warehouse
SQM
Office
SQM
Total Size
(SQM)
Internal
Height
Number of
Roller Shutter
Doors
Number of
Recessed
Docks
Freestanding
or Unit
Net Rent
(/sqm)
Outgoings
(additional taxes)
(/sqm)
Available
Time
Parking Lots
1 Rosehill
2 Unwin St,
Rosehill, NSW
3,419 1,137 4,556
10.7m -
12.2m
5 0 No $125 $25 May 35
2 TNT
29-33 Carter Street,
Homebush, NSW
5,198 1,624 6,822 8.5m 27 27 Yes $130 $30 Apr-15 40
3 Altech
350 Parramatta Road,
Homebush, NSW
6,089 719 6,808
8.8m -
11.1m
6 4 No $130 $33
6 weeks
notice
40
4 Flemington
141-151 Arthur Street,
Flemington, NSW
1,630 1,043 2,673
8.7m -
9.9m
2 0 No $135 $35 Now 40
Newegg Australia | Operations Processing Center (OPC) Final Options
*Property Research and Site Survey are completed by Sr. Director of Corporate Engineering, Jeffrey Zeng, and Sr. VP, Operation, OZZO, Kunal Thakkar, in Feb 2015.

What’s Done:
1. 24 hours chat/email support
2. Geo Translation software in place for current use
and future language needs. No prep time needed.
3. Nine languages currently supported for phone
contacts. Ready to hire more as needed.
4. Mandarin phone support ready as needed.
5. Real-time translation service quotes ready.
What To Do Next:
1. Create knowledge base portal for each international
country.
2. Ability to expand phone support in the to US to 24
hours.
3. Call on the vendors who are ready with quotes for
outsourcing if needed.
4. Consider local contact center at any logistics center
planned.
5. Consider the possibility of opening a local call center
at the logistics center in Australia. Estimated Costs
(as Figure 1.0).
6. Create a knowledge base portal for each
international country.
Cost for 16 people equipment/workstations Cost
Workstations (Data Drop) 1,489
Workstations (Cubicles) 9,975
Workstations (Electrical Work) 2,722
Memory 1,116
Y-cord 27
Adapters 1,406
Headsets for Call Center 1,102
Power Strips 130
Chairs 1,119
Equipment/Workstations 19,086
Travel costs for setting up a new call center Cost
Trainer (45 days) 16,650
Recruiter (15 days) 6,750
VP (15 days) 6,750
Travel Costs 30,150
Equipment/Workstations + Travel 49,236
Australia Estimate (Figure 1.0)
Newegg Australia | International Customer Service Center
*Presented by Sr. VP of Customer Service, Sue Martin

Country Manager
CS/ IT
Agents
Inbound/
Outbound
Agents
Assistant
Manager
Chief Executive
Officer
(Enterprise)
Finance Sales Operation
Management
Office
Hybrid Center
Agent
Customer
Service
LogisticMarketingAccounting
Merchandisers
Hybrid Center
Agent
Manager Manager
OPC
Managers
Manager
Newegg Australia | Management & Organization Structure
Data
Analyst
Managers
Director
Product
Management
Agent
Agent
Manager
RMA
Services Operation
Corporate
Management
Office

Newegg Australia | 5 years Term Profit & Loss Forecast
2015 - 2020
(in thousands US$) Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16* Q4-16 1H-17 2H-17 2018* 2019* 2020 5-Year Total
Net Product Sales $300 $800 $1,190 $1,250 $1,350 $2,400 $3,000 $12,000 $14,000 $40,000 $54,000 $70,000 $200,290
EIMS $1 $1 $3 $6 $8 $30 $45 $140 $180 $600 $1,200 $2,500 $4,713
Freight Margin $1 $1.5 $3 $5 $6 $29 $36 $120 $140 $160 $162 $210 $873
Gross Revenue $302 $802 $1,196 $1,261 $1,364 $2,459 $3,081 $12,260 $14,320 $40,760 $55,362 $72,710 $205,877
Selling, General & Admin. $50 $67 $99 $232 $438 $575 $629 $2,006 $2,120 $6,950 $8,240 $9,570 $30,976
% of revenue 16.65% 8.38% 8.24% 18.40% 32.09% 23.39% 20.42% 16.36% 14.80% 17.05% 14.88% 13.16% 15.05%
Compensation and Benefits $40 $40 $45 $167 $200 $250 $260 $840 $860 $3,000 $3,600 $4,200 $13,502
% of revenue 13.27% 4.99% 3.76% 13.24% 14.66% 10.17% 8.44% 6.85% 6.01% 7.36% 6.50% 5.78% 6.56%
Office/OPC Lease $0 $0 $0 $0 $150 $150 $150 $350 $350 $1,350 $1,400 $1,450 $5,350
% of revenue 0.00% 0.00% 0.00% 0.00% 11.00% 6.10% 4.87% 2.85% 2.44% 3.31% 2.53% 1.99% 2.60%
Credit Card Charges $6.0 $16.0 $23.8 $25.0 $27.0 $48.0 $60.0 $240.0 $280.0 $800.0 $1,080.0 $1,400.0 $4,006
% of revenue 1.99% 1.99% 1.99% 1.98% 1.98% 1.95% 1.95% 1.96% 1.96% 1.96% 1.95% 1.93% 1.95%
Marketing/Advertising $3.00 $8.00 $18 $25 $40.50 $84 $105 $456 $490 $1,400 $1,728 $1,960 $6,317
% of revenue 1.00% 1.00% 1.49% 1.98% 2.97% 3.42% 3.41% 3.72% 3.42% 3.43% 3.12% 2.70% 3.07%
Other Operating Expenses $1 $3 $11.90 $15 $20 $43 $54 $120 $140 $400 $432 $560 $1,801
% of revenue 0.40% 0.40% 0.99% 1.19% 1.48% 1.76% 1.75% 0.98% 0.98% 0.98% 0.78% 0.77% 0.87%
Marginal Contribution $251 $735 $1,097 $1,029 $926 $1,884 $2,452 $10,254 $12,200 $33,810 $47,122 $63,140 $174,901
% of revenue 83.35% 91.62% 91.76% 81.60% 67.91% 76.61% 79.58% 83.64% 85.20% 82.95% 85.12% 86.84% 84.95%
Depreciation - - - - 15 87 87 87 72 40 30 30 448
Pretax Income $251 $735 $1,097 $1,029 $911 $1,797 $2,365 $10,167 $12,128 $33,770 $47,092 $63,110 $174,453
Package Quantity 1,200 3,000 7,212 7,813 8,160 12,307 15,789 40,000 45,000 121,000 165,000 200,000 626,481
Headcounts 1.5 1.5 1.5 10 12 14 14 18 18 30 35 40 196
* Compensation and Benefits does NOT include the International Customer Service Center
* Mid 2016 | Hybrid Center; Late 2016 | B2B Wholesaling
* Mid 2018 | Hybrid Center & Logistic Hub at West Coast
* Mid 2019 | Newegg Express (Sydney)

Appendix

Business Name Type of Business AU Address State Zip Code Sales Call Centre Logistic
RMA/
Repair
ASUS Manufacture Unit 6, Gateway Business Park, 63-79 Parramatta Road, Silverwater, NSW 2128 x x
Intel Manufacture Level 17, 111 Pacific Highway, North Sydney NSW 2060 x
SAMSUNG (Electronics) Manufacture 8 Parkview Drive, Homebush Bay NSW 2127 x
Seagate Manufacture Level 1 55-59 Parramatta Rd, Lidcombe, NSW 2141 x x
Microsoft Manufacture 1 Epping Road, North Ryde NSW 2113 x x
Hewlett-Packard Manufacture Level 6, Building F, Rhodes Corporate Park 1 Homebush Bay Drive, Rhodes NSW 2138 x
410 Concord Road, Rhodes NSW 2138 x x
3 Bradford Close, Kotara NSW 2289 x x
353 Burwood Highway, Forest Hill (AU HQ) VIC 3131
Western Digital Manufacture
Lenovo Manufacture Level 4, 12 Help St, Chatswood NSW 2067 x
EVGA Manufacture
Acer America Manufacture 8 Baywater Drive, Wentworth Point NSW 2127 x
MSI Manufacture Unit 16, 22-24 Princes Rd East Auburn NSW 2144 x
Corsair Manufacture
DELL Manufacture Building 3, 14 Aquatic Drive, Frenchs Forest, NSW 2086 x x
G.SKILL Manufacture
GIGABYTE Manufacture Unit 3, No. 6, Garden Road, Clayton VIC 3168 x x
AMD Manufacture Level 9, 123 Epping Road, North Ryde NSW 2113 x x
Crucial Manufacture Micron Consumer Products Group Australia (PO Box Only)
Toshiba Manufacture Building C, 12-24 Talavera Road, North Ryde NSW 2113 x x
350 Parramatta Road, Homebush (National Distribution Centre and MobileCare
Centre) NSW 2127 x x
Kingston Technology Corp. Manufacture
LG Electronics Manufacture 2 Wonderland Dr, Eastern Creek NSW 2766 x x x x
Netgear, Inc. Manufacture Level 18, Tower A, The Zenith Centre/821 Pacific Highway, Chatswood NSW 2067 x x x x
HyperX (Kingston) Sub Brand
Logitech Manufacture Level 2 608 Liverpool Rd, Strathfield South NSW 2136 x
Cooler Master Manufacture
ASRock Manufacture
Sapphire Tech Manufacture
APC Manufacture 78 Waterloo Road, Macquarie Park NSW 2113 x x x x
Fujitsu Manufacture 118 Talavera Rd, Macquarie Park NSW 2114 x x x x
PNY Technologies, Inc. Manufacture
iBUYPOWER System Integrator
Newegg Australia | Top 30 Vendors Local Facilities

Distributor Vendor # Request #
Vendor
App To
Vendor
Vendor
App in
Acct
Vendor
App
Approved
Contract
to Vendor
VF Ques.
To Vendor
VF Ques.
App by VF
Contract
Signed
Testing
Started
Developm
ent
ETA
SKU
Count
Action Needed / Notes
Ingram Micro Pending Ingram USA, Wont do business without VAT
Synnex 31643 10833 X X X X X 10000 Pending new contract and edi questionaire
Altech 31382 10208 X X X X X X 5562 Pending new international contract
QVS X Need nda, edi, and voided check back
Multimedia Technology X Need all docs
Achieva Pending conference call
Anyware Corporation X X Need NDA and financial satement and void check
Rectron X Pending all paperwork
Leader Systems 31777 11199 X X X X X X 5081 Pending new international contract
Dueltek 31790 11226 X X Pending NDA
Dicker Data X Pending all paperwork
Mittoni 31792 11228 X Pending financal statement and NDA
Newegg Australia | Distributors Business Development Status Chart

Newegg Australia | Product Compliance
Restricted Imports Erasers - Novelty Erasers resembling food in scent or appearance.
Knives and Daggers Daggers, automatic knives, single handed opening knives, butterfly knives, trench knives, ballistic knives, concealed knives/blades, throwing knives/blades/axes, star knives, push knives, sheath knives, non-
metallic knives.
Laser Pointers Hand-held devices commonly known as laser pointers with an accessible emission level of greater than 1mW.
Objectionable Material
Includes publications, films, computer games and any other goods that describe, depict, express or otherwise deal with matters of sex, drug misuse or addiction, crime cruelty, violence, terrorist acts or revolting
or abhorrent phenomena in such a way that they offend against the standards of morality, decency and propriety generally accepted by reasonable adults.
Gas and electrical goods Gas and electrical goods that do not meet Australian safety and technical standards may be a serious safety risk. Those for sale online from overseas may not meet Australia’s standards. Some goods, like
barbeques and personal grooming items, may not be able to be modified to meet the Australian standards.
Electronic labelling
the supplier of a device that has a built-in display has the option of displaying the compliance label electronically on the
built-in display rather than on the surface of the device. Electronic labelling is only an option if the device has a built-in
display. Displays that connect to the device, but are external to the device, are not built-in. Suppliers that choose to use
electronic labelling are required to explain in the documentation that accompanies the device how the electronic label can
be viewed.
Full details of these requirements are addressed in the respective labelling notices for the applicable regulatory
arrangements available on the ACMA website.
Scale and Visibility
The compliance label shall be legible and visible to the unaided eye and the compliance mark shall be no smaller than three
millimetres (3 mm) in height. The label may be reproduced in any colour, provided that visibility is assured through either
contrast with the background colour or marking in relief (for example, moulding or engraving). Where supplier
identification characters are used the characters must be no less than one millimetre (1 mm) in height.
Placement
Suppliers have the choice of either applying a compliance label to the surface of the device or electronically if the device
has a built-in electronic display. In addition, the label may be placed on promotional material associated with the device.
Surface labelling
the compliance label should be a permanent feature placed on the device. It must be applied to a surface of the device that
is readily accessible to the user. The label should be durable and applied by any suitable means including printing, painting,
moulding, etching or engraving.
If it is not practical to apply a label to the external surface of the device or it is not displayed using the built-in electronic
display, it must be applied to the following items associated with the device:
the external surface of the packaging used for the device
the documentation (operating instructions, warranty or guarantee certificates) that accompanies the device when it is
supplied to the consumer.
If a label has to be applied to the external surface of the packaging used for a device, it must:
be clearly visible
occupy an area that is greater than one per cent of that external surface.
Suppliers that do not apply a label to the surface of the device are required to maintain records detailing the reasons why
and where the label was subsequently applied. This requirement does not apply to suppliers that label electronically.
Compliance marks
The ACMA has three compliance marks Regulatory Compliance Mark (RCM) Use of the mark on a compliance label
A compliance label indicates a device has been certified by the supplier as meeting any applicable standards that apply to
that device. There are requirements for compliance labels including durability, legibility, positioning and font and symbol
size.
For first-time suppliers

Newegg Australia | Product Compliance (con’t)
used to indicate the compliance of radiocommunications equipment, electrical and electronic equipment subject to the EMC arrangement, and equipment required to
meet EME standards
can continue to be used as a compliance label by suppliers issued with a Supplier Code Number from the ACMA until 1 March 2016
Use of particular marks depends largely on when you first commenced labelling products and the types of products you supply. Details of the correct use of compliance
marks are specified in the respective regulatory arrangements. For convenience these requirements are also included in the information booklets for the regulatory
arrangements.
A-Tick
used to indicate the compliance of telecommunications customer equipment and customer cabling
can continue to be used as a compliance label by suppliers issued with a Supplier Code Number from the ACMA until 1 March 2016
Where product is subject to telecommunications and EMC, EME or radiocommunications arrangements the compliance label bearing the A-Tick and supplier identification
would indicate compliance with all applicable arrangements.
C-Tick
For all previous ACMA-registered suppliers A-tick and C-tick compliance marks
References:
1. http://www.australia.gov.au/topics/economy-money-and-tax/importing-goods-to-australia
2. http://www.customs.gov.au/site/page4369.asp
3. http://www.acma.gov.au/Industry/Suppliers/Supplier-resources/Supplier-overview/compliance-marks

Newegg australia development plan (hogan) v1.8

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Newegg australia development plan (hogan) v1.8