Newegg's Cyber Monday Sale Bombs; Leaves Customers Dazed and Confused

zekrahminator · Nov 30, 2007, 12:19 PM

Newegg hardly needs an introduction, boasting a reseller rating of 9.90. On the traditional day of online sales, dubbed "Cyber Monday", though, that reputation was put to the test. It all started innocently enough: Newegg was offering 20% cash back on anything purchased via PayPal between Monday and Wednesday (November 26th through November 28th). They promised to put the cash in by January 31st 2008. The only rule Newegg gave customers was that the refund would not be any more than $50USD.

Sounds good, right? Unfortunately, about two and a half hours after people started splurging, PayPal ran out of funds to give people cash back, and Newegg was forced to call a hasty end to the promotion. This left Newegg in a very sticky situation, as the promotion banners were prominently displayed all over the site. Newegg later edited the terms-and-conditions to say that the promotion would end on 11/26, would only last "while supplies last", and began damage control. Newegg is now in the very tough position of trying to get people the refunds they deserve. If Newegg cannot get the customers the cash back they promised, they will send said customer a free gift, assuming the customer contacts Jason on the Newegg forums.

Source: DailyTech

hacker111 · Nov 30, 2007, 12:57 PM

they must be selling really bad products...even though they are seling like crazy...now they have a recall and they have supposedly ran out of money...ya right..the people that purchased the product need there money back and I can see why the people are pissed and they only get a maximum $50 back????? What if they bought something over $1000 that would be $200 for 20% and they cant dish that out??? BULL

Kreij · Nov 30, 2007, 01:17 PM

No, the cash back is not for returned items, it was a money saving promotion.
They should have never put a date spread in if there were only limited funds for rebates.
They should have made it clear that it would only be "until the rebate money is gone."

I'm not going to beat up newegg too bad, they are a great company and I have never had any problems with anything I have purchased from them.

mdm-adph · Nov 30, 2007, 01:35 PM

Paypal ran out of funds? You mean Newegg's Paypal account, or Paypal itself? One I can believe, one I can't.

Kreij · Nov 30, 2007, 01:42 PM

Quote:

Originally Posted by mdm-adph

Paypal ran out of funds? You mean Newegg's Paypal account, or Paypal itself? One I can believe, one I can't.

Neither, the amount of money that PayPal ponied up for rebates ran out.

LiNKiN · Nov 30, 2007, 02:17 PM

Foresight is a lot better to have than hindsight!

newtekie1 · Nov 30, 2007, 02:19 PM

If newegg was really really great, they would have just sucked it up and send the people the money via paypal out of their own pockets.

PVTCaboose1337 · Nov 30, 2007, 02:20 PM

I was so happy for this, I was gonna get 20% back, but newegg was being bad, and now I cannot

I wanted to buy the Phenom BTW, so as a free gift they can give... a 3870!!!

Kreij · Nov 30, 2007, 02:22 PM

Quote:

Originally Posted by newtekie1

If newegg was really really great, they would have just sucked it up and send the people the money via paypal out of their own pockets.

If disagree. Since this was a promotion to get people to use PayPal (and PayPal was putting up the money) it should be PayPal who sucks up and gives everyone the rebate for the original date range.

PVTCaboose1337 · Nov 30, 2007, 02:23 PM

Yeah, Paypal was advertising it for LOTS of etailors besides newegg... so it would be VERY unfair.

Nov 30, 2007, 02:34 PM

But Paypal is owned by eBay, and what is eBay?......

That's right, evil!

nflesher87 · Nov 30, 2007, 03:28 PM

yeah this pissed me off a bit monday, I was just about ready to use three different paypal accounts to get a total of $150 off, then it was like BAM no more promotion
paypal should have made it known beforehand that there was a max they were going to give back

HookeyStreet · Nov 30, 2007, 03:43 PM

Quote:

Originally Posted by hacker111

they must be selling really bad products...even though they are seling like crazy...now they have a recall and they have supposedly ran out of money...ya right..the people that purchased the product need there money back and I can see why the people are pissed and they only get a maximum $50 back????? What if they bought something over $1000 that would be $200 for 20% and they cant dish that out??? BULL

LOL, I think you misread or dont understand what Zek said

HookeyStreet · Nov 30, 2007, 03:44 PM

Quote:

Originally Posted by v-zero

But Paypal is owned by eBay, and what is eBay?......

That's right, evil!

Agreed! I call BS on this.....theres no way PayPal could 'run out' of funds

Kreij · Nov 30, 2007, 03:46 PM

Quote:

Originally Posted by HookeyStreet

Agreed! I call BS on this.....theres no way PayPal could 'run out' of funds

PayPal didn't run out of funds. The sales reached the limit of the funds that PayPal was willing to offer in rebates.

So if PayPal said we will only rebate up to $50,000.00 and the limit was reached, the offer ended.

SK-1 · Nov 30, 2007, 03:47 PM

Quote:

Originally Posted by v-zero

But Paypal is owned by eBay, and what is eBay?......

That's right, evil!

I have made and saved THOUSANDS with Ebay,..EVIL?

HeavyH20 · Nov 30, 2007, 04:12 PM

Quote:

Originally Posted by Kreij

PayPal didn't run out of funds. The sales reached the limit of the funds that PayPal was willing to offer in rebates.

So if PayPal said we will only rebate up to $50,000.00 and the limit was reached, the offer ended.

You are correct. This is the same kind of promotion that Buy.com does with Yahoo checkout. You get 20% off your current order if you do it via the Yahoo payment service. PayPal does this to get new accounts. I think they likely underestimated how many NewEgg customers had a PayPal account already and ripped through the allocated marketing funds in a short few hours.

zekrahminator · Nov 30, 2007, 04:21 PM

Quote:

Originally Posted by hacker111

they must be selling really bad products...even though they are seling like crazy...now they have a recall and they have supposedly ran out of money...ya right..the people that purchased the product need there money back and I can see why the people are pissed and they only get a maximum $50 back????? What if they bought something over $1000 that would be $200 for 20% and they cant dish that out??? BULL

You obviously have never got anything off of Newegg

.

zekrahminator · Nov 30, 2007, 04:25 PM

Quote:

Originally Posted by newtekie1

If newegg was really really great, they would have just sucked it up and send the people the money via paypal out of their own pockets.

If I'm not mistaken, that's what Newegg was doing, but PayPal put a set limit on how much money Newegg could give back.

mdm-adph · Nov 30, 2007, 04:27 PM

Quote:

Originally Posted by Kreij

PayPal didn't run out of funds. The sales reached the limit of the funds that PayPal was willing to offer in rebates.

So if PayPal said we will only rebate up to $50,000.00 and the limit was reached, the offer ended.

The problem is, they never said that anywhere.

HookeyStreet · Nov 30, 2007, 04:28 PM

Quote:

Originally Posted by Kreij

PayPal didn't run out of funds. The sales reached the limit of the funds that PayPal was willing to offer in rebates.

So if PayPal said we will only rebate up to $50,000.00 and the limit was reached, the offer ended.

That should have been stated in the offer description

Basard · Nov 30, 2007, 05:14 PM

Free gift? like what? A $50 paperweight? Why can't they just cut these people a CHECK. I don't see how Paypal could run out of funds, if people are "inserting" funds as they purchase items, the funds should just come in form of discount... "Cash back"... LOL what is this AT&T now.

AsRock · Nov 30, 2007, 05:24 PM

Thumbs up to Newegg.

, BUT does this mean that Paypal are spending what they don't have ?... People have the right to have there money back DAM Paypal....

F-22 · Dec 1, 2007, 01:08 AM

Quote:

Originally Posted by SK-1

I have made and saved THOUSANDS with Ebay,..EVIL?

Yea, dude, wtf are these guys talking about? Ebay is great! Also they've pretty much eliminated the eCommerce entry barrier for new businesses. That is definately NOT the definition of Evil! Also, you can find shit on there that you can't get anywhere else.

panchoman · Dec 1, 2007, 01:10 AM

paypal ran out of funs and screwed over newegg, wow...

Nov 30, 2007, 12:19 PM	#1
zekrahminator McLovin Join Date: Jan 2006 Location: My house. Posts: 6,280 (2.35/day) Thanks: 105 Thanked 340 Times in 246 Posts System Specs	Newegg's Cyber Monday Sale Bombs; Leaves Customers Dazed and Confused Newegg hardly needs an introduction, boasting a reseller rating of 9.90. On the traditional day of online sales, dubbed "Cyber Monday", though, that reputation was put to the test. It all started innocently enough: Newegg was offering 20% cash back on anything purchased via PayPal between Monday and Wednesday (November 26th through November 28th). They promised to put the cash in by January 31st 2008. The only rule Newegg gave customers was that the refund would not be any more than $50USD. Sounds good, right? Unfortunately, about two and a half hours after people started splurging, PayPal ran out of funds to give people cash back, and Newegg was forced to call a hasty end to the promotion. This left Newegg in a very sticky situation, as the promotion banners were prominently displayed all over the site. Newegg later edited the terms-and-conditions to say that the promotion would end on 11/26, would only last "while supplies last", and began damage control. Newegg is now in the very tough position of trying to get people the refunds they deserve. If Newegg cannot get the customers the cash back they promised, they will send said customer a free gift, assuming the customer contacts Jason on the Newegg forums. Source: DailyTech

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Nov 30, 2007, 01:17 PM	#3
Kreij Hardcore Monkey Moderator Join Date: Feb 2007 Location: Cheeseland (Wisconsin, USA) Posts: 12,113 (5.28/day) Thanks: 591 Thanked 5,492 Times in 2,936 Posts System Specs	No, the cash back is not for returned items, it was a money saving promotion. They should have never put a date spread in if there were only limited funds for rebates. They should have made it clear that it would only be "until the rebate money is gone." I'm not going to beat up newegg too bad, they are a great company and I have never had any problems with anything I have purchased from them. __________________ Cloud (noun, singular): A dynamic arrangement of multiple potential single points of failure, with a user at one end and their data at the other. Get more tech news on a wide variety of topics at NextPowerUp

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Nov 30, 2007, 01:35 PM	#4
mdm-adph Join Date: Mar 2007 Location: Your house. Posts: 2,426 (1.08/day) Thanks: 401 Thanked 344 Times in 247 Posts System Specs	Paypal ran out of funds? You mean Newegg's Paypal account, or Paypal itself? One I can believe, one I can't. __________________ CPU-Z validation sig pics temporarily blocked

Nov 30, 2007, 12:57 PM	#2
hacker111 Join Date: Nov 2007 Location: MA United States Posts: 332 (0.16/day) Thanks: 48 Thanked 1 Time in 1 Post	they must be selling really bad products...even though they are seling like crazy...now they have a recall and they have supposedly ran out of money...ya right..the people that purchased the product need there money back and I can see why the people are pissed and they only get a maximum $50 back????? What if they bought something over $1000 that would be $200 for 20% and they cant dish that out??? BULL

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Nov 30, 2007, 02:17 PM	#6
LiNKiN Staff Join Date: Jan 2006 Posts: 1,375 (0.51/day) Thanks: 221 Thanked 294 Times in 204 Posts System Specs	Foresight is a lot better to have than hindsight!

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Nov 30, 2007, 02:19 PM	#7
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Nov 30, 2007, 02:20 PM	#8
PVTCaboose1337 Graphical Hacker Join Date: Feb 2006 Location: San Antonio, Texas Posts: 7,478 (2.81/day) Thanks: 798 Thanked 1,174 Times in 834 Posts System Specs	I was so happy for this, I was gonna get 20% back, but newegg was being bad, and now I cannot I wanted to buy the Phenom BTW, so as a free gift they can give... a 3870!!! __________________ CPU-Z validation sig pics temporarily blocked

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Nov 30, 2007, 02:23 PM	#10
PVTCaboose1337 Graphical Hacker Join Date: Feb 2006 Location: San Antonio, Texas Posts: 7,478 (2.81/day) Thanks: 798 Thanked 1,174 Times in 834 Posts System Specs	Yeah, Paypal was advertising it for LOTS of etailors besides newegg... so it would be VERY unfair. __________________ CPU-Z validation sig pics temporarily blocked

Nov 30, 2007, 02:34 PM	#11
v-zero Guest Posts: n/a (0/day)	But Paypal is owned by eBay, and what is eBay?...... That's right, evil!

Nov 30, 2007, 03:28 PM	#12
nflesher87 Staff Join Date: Dec 2006 Location: University of Pittsburgh School of Dental Medicine Posts: 4,279 (1.81/day) Thanks: 411 Thanked 480 Times in 428 Posts System Specs	yeah this pissed me off a bit monday, I was just about ready to use three different paypal accounts to get a total of $150 off, then it was like BAM no more promotion paypal should have made it known beforehand that there was a max they were going to give back

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Nov 30, 2007, 05:14 PM	#22
Basard Join Date: Dec 2006 Location: Oshkosh Posts: 529 (0.23/day) Thanks: 12 Thanked 36 Times in 34 Posts System Specs	Free gift? like what? A $50 paperweight? Why can't they just cut these people a CHECK. I don't see how Paypal could run out of funds, if people are "inserting" funds as they purchase items, the funds should just come in form of discount... "Cash back"... LOL what is this AT&T now. __________________ Heatware.

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Nov 30, 2007, 05:24 PM	#23
AsRock TPU addict Join Date: Jun 2007 Location: US\ Uk Born Posts: 8,793 (4.07/day) Thanks: 1,674 Thanked 1,348 Times in 1,170 Posts System Specs	Thumbs up to Newegg. , BUT does this mean that Paypal are spending what they don't have ?... People have the right to have there money back DAM Paypal....

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Dec 1, 2007, 01:10 AM	#25
panchoman Sold my stars! Join Date: Jul 2007 Posts: 6,650 (3.11/day) Thanks: 339 Thanked 1,227 Times in 1,036 Posts System Specs	paypal ran out of funs and screwed over newegg, wow... __________________ Need any Graphics Made? Visit Graphic Artists United! R.I.P Megan--Heaven has a new angel

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