MENU

What should I know about selling on NewEgg Marketplace?

LinkedIn Twitter Facebook

 

Author: Becca McDonald, eCommerce Worldwide

Founded in California in 2001 by Taiwanese entrepreneur Fred Chang, Newegg is an online retailer specialising in technology, named to symbolise a new hope for eCommerce businesses at a time when online retailers were struggling.

Newegg launched its marketplace in 2010, generating more than $2.5bn in revenue in its first year. It now has over 30 million registered users and attracts both techies and mainstream audiences, listing 20 million SKUs.

 

Stock sold on Newegg includes computer parts, jewellery, watches and sporting goods and attracts a consumer that often already has a firm idea of what they’re looking to buy. Considered to be somewhat geeky, before opening up to third-party sellers, Newegg still has a reputation for specialising in niche products.

 

Whilst the 18-35 tech-savvy male demographic still comprises a fair amount of Newegg’s audience, more mainstream retailers shouldn’t rule it out. Out of Newegg's 17 categories, the top four year-over-year were reported to be office supplies, consumer electronics, health & beauty, and automotive1.

 

Newegg serves both the B2B and B2C markets and freely encourages cross-border trade, with the ‘international seller program’ which allows US sellers to ship abroad and the ‘global seller’ program which helps foreign sellers trade into the US. To qualify, merchants need a valid business license from their native country, certificate of company and product insurance, a signed W8BEN-e (tax reporting) form, bank details to match their business license and a US address for return handling (could be through a third-party). Sellers can receive payments through either PayPal, Payoneer or WorldFirst2.

 

NewEgg Marketplace - US eCommerce Market

 

Newegg describe themselves as 'obsessed with total customer satisfaction', so as you may expect, requirements for vendors are strict and they must be screened before they can start selling. Sellers must have a commitment to excellent customer service, with a dedicated contact who can reply to enquires within one working day and their terms and conditions state that Newegg have the right to make 'discretionary concessions' to appease unhappy customers. They are also known for their fast shipping and 100% of orders are shipped within three working days. If a tracking number isn't updated within this timeframe, then orders are voided3.

 

Commissions on products range from 10-15% depending on the category and no additional fees, such as payment processing, are charged on top of this. These rates are considerably lower than other marketplaces. However, if your products are low margin you must still keep a keen eye on the mounting costs, combined with shipping fees, in order to preserve profit.

 

In brief, Newegg represents a good opportunity for e-tailers looking to start in the US, particularly those who specialise in tech, however you must be sure to have the capability to manage customer expectations and the ability to ship products quickly. It is also important to consider that Newegg’s educated audience often know what they are looking for before they arrive on the site, so if you are a new brand you may have to think extra carefully about marketing and product descriptions.

 

 

1 - 7 Things You Didn’t Know About Newegg Article
2 - NeweggBusiness Marketplace Global Seller Information
3 - NewEgg Marketplace Information

 

LinkedIn Twitter Facebook

What can UK online retailers learn from major sales events in China?

What can UK online retailers learn from major sales events in China?

By cleverly orchestrating a string of headline-grabbing shopping holidays throughout the year, China is reinventing retail. But why are Chinese consumers embracing these shopping frenzies so readily and offers and how can overseas retailers learn from this to gain and maintain the competitive edge?
How WeChat is used for Business

How WeChat is used for Business

WeChat has been a hot topic for many marketers for a long time. However, how much do we really know about the most used social network in China? And how is WeChat used for business?
Ecommerce in Australasia

Ecommerce in Australasia

The New Zealand and Australia cross-border eCommerce markets are booming and it is looking to continue this way for the coming years. With almost 17 million savvy and highly engaged online shoppers in the region, what do you need to know about these eCommerce markets and which are the most successful retail sites there?
Ecommerce shipping to Australia

Ecommerce shipping to Australia

It’s easy for any retailer to be attracted to the impressive digital adoption Australia has taken with online retail sales of USD $9.5 bn last year. However, this success is not without its challenges as shipping into this widely fragmented country can affect your business - but how?
Online retail in the Nordics: which payment options to offer

Online retail in the Nordics: which payment options to offer

People foreign to the Nordic region might not realise that the combined markets of Denmark, Norway, Sweden and Finland are in many ways leading the world in payments innovation. And through this, it is also apparent in its consumers’ progressive payment preferences when making online purchases. However, which payment option should online retailers offer when launching in these markets?
How can online retailers earn trust in Belgium?

How can online retailers earn trust in Belgium?

Belgium’s online presence is growing year after year and with a growing healthy appetite for cross-border purchases, what should online retailers take into account if they are to enter Belgium’s eCommerce market?
Delivery preference of Dutch and Belgian online shoppers

Delivery preference of Dutch and Belgian online shoppers

Dutch and Belgian consumers are increasingly buying their goods online, but they differ in how they want those goods delivered. A savvy online retailer needs to localise its delivery options to meet these local requirements. But what are these delivery preferences?
What can UK retailers learn from the Amazon model?

What can UK retailers learn from the Amazon model?

Amazon’s reach is so pervasive that it’s overtaking Google to become the search engine of shopping. And it’s just as attractive for retailers as it is for customers, allowing brands to offer their products to the biggest audience in eCommerce, and offering attractive and easy fulfilment options. But what can UK retailers learn from the successful Amazon model?
The fundamentals of retail: Which European countries are leading the way?

The fundamentals of retail: Which European countries are leading the way?

From delivering on promise, to quickly resolving contact centre queries, to minimising the amount of returns, there are myriad aspects for retailers to get right when it comes to delivering a great customer experience. But which European countries are most successfully delivering on the fundamentals of retail?
Beyond Black Friday: Unmissable international events for 2017 eCommerce plans

Beyond Black Friday: Unmissable international events for 2017 eCommerce plans

In the US, the day after Thanksgiving has been a key focus for US shopping. Now, Black Friday is becoming the unofficial start to the Christmas shopping season in countries across the world. But there are hundreds of other events across the world to be aware of when developing an international strategy. Here are a few...

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More