California-based E-Retailer Picks Indy for New Distribution Center

Indy Chamber News Archives

INDIANAPOLIS (Nov. 20, 2013) – Newegg, Inc., an electronics-focused e-retailer, announced plans today to locate a new warehouse facility here, creating up to 150 new jobs by 2015.

The City of Industry, Calif.-headquarted company will invest $20 million to lease, renovate and equip a nearly 500,000 square-foot order fulfillment facility in Indianapolis. The expansion, which is expected to be complete by late 2014, will allow Newegg to better serve customers in the Midwest, Chicago and Great Lakes regions.

“We’ve long known that Indianapolis’ central location and transportation accessibility was a huge asset for businesses,” said Indianapolis Mayor Greg Ballard. “As the e-commerce industry continues to grow, central locations like ours are key to fast, efficient delivery of products. Newegg’s decision to locate a order fulfillment and processing center in Decatur township will not only be an asset to our logistics industry, but to the citizens of Indianapolis in need of reliable jobs.”

Newegg, which currently employs approximately 2,600 employees worldwide, plans to begin hiring workers for its new Indianapolis order fulfillment center late next year. Positions will include order fulfillment center managers and supervisors, as well as forklift and reach truck operators. There will also be positions available in receiving, order picking and packing, shipping and clerical-related operations.

“Newegg has built an outstanding logistics system with strategically placed warehouse operations across the country that allow us to get our products into the hands of customers as quickly and economically as possible," said Kunal Thakkar, vice president of operations of Newegg. “Expanding our warehouse operations to the state of Indiana is the right business decision for Newegg. This new Midwestern distribution center is part of our global strategy to continuously improve our efficiency and effectiveness for the benefit of our customers.”  

Founded in 2001, Newegg offers 8 million products to more than 22 million registered users at Newegg.com. The website includes detailed product descriptions, how-to guides and more than 2.5 million product reviews. The Indianapolis order fulfillment center will enable Newegg to handle 30,000 different products and ship tens of thousands of orders daily to its Midwestern customers, with production increases likely during peak seasons.

“The logistics and warehousing industry in Indy is building upon our long-rooted history to be attractive to e-commerce retailers,” said Brian Gildea, VicePresident and Executive Director of Develop Indy, a business unit of the Indy Chamber. “With the addition of Newegg, we’re showing the nation that Indy has the infrastructure and workforce to handle such commerce leaders as Newegg.”

The Indiana Economic Development Corporation offered Newegg, Inc up to $1,000,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Indianapolis will consider additional tax abatement at the request of Develop Indy, a business unit of the Indy Chamber.

“The Hoosier State’s reputation for a robust infrastructure separates us from the rest of the pack,” said Governor Mike Pence. “When companies like Newegg are comparing locations for new distribution hubs, they quickly discover that Indiana’s compelling story – including talented workers, low-tax policies and fiscal stability – make it a state that works for logistics.” 

Companies looking to exercise a competitive advantage in logistics find a favorable business environment in Indiana. With Indiana’s 14 interstates, it ranks first in the nation for interstate highway access, according to Conexus Indiana. Indiana’s central location and expanding infrastructure allow quick access to 80 percent of the nation’s population with just one day’s drive.

About Newegg
Newegg Inc. is the leading electronics-focused e-retailer in the United States. It owns and operates Newegg.com (www.newegg.com) and NeweggBusiness.com (www.neweggbusiness.com), and regularly earns industry-leading customer service ratings. Newegg delivers a world-class e-commerce platform and is committed to serving the online technology community, from tech-enthusiasts to small and medium-sized businesses. Both Newegg.com and NeweggBusiness.com feature a comprehensive selection of the latest computer hardware and consumer electronics products, detailed product descriptions and images, as well as how-to information and customer reviews. Newegg Inc. was founded in 2001 and is headquartered in City of Industry, California.

About Develop Indy
Develop Indy, a business unit of the Indy Chamber, is Marion County's local economic development organization. Develop Indy is dedicated to attracting new businesses, retaining and expanding existing businesses and serving as a catalyst for capital investment and quality job growth in Indianapolis/Marion County. For more information, visit www.developindy.com. 

About IEDC
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC. 

The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.

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Media Contacts: 
James Merk (Newegg) – 626.271.1420 or [email protected]
Jessica Higdon (Indy Chamber) - 317.464.2232 or [email protected]
Katelyn Hancock (IEDC) – 317.234.2294 or [email protected]