Online Marketplace Spotlight: Newegg
Many of the most successful e-commerce websites specialize in a specific subsection of the retail industry. While Amazon and eBay feature sellers of all types of merchandise, Newegg focuses its efforts on electronics and technology. Though its marketplace includes products like furniture and apparel, it excels in this one particular area.
How Newegg Got Its Start
Founded in 2001 by Taiwanese immigrant Fred Chang, Newegg rose quickly in revenue as it gained fans among buyers and sellers alike. It picked up numerous awards for customer service and product availability and developed high customer satisfaction ratings among critical websites and publications. It launched as a consumer-driven resource for electronics and gadgets of all kinds, but eventually expanded to include other consumer products.
As of 2013, Newegg gathered more than 25 million registered customers and reported $2.7 billion in revenue. The company is headquartered in City of Industry, California, and employs more than 2,600 people. The founders named the business “Newegg” to symbolize their hope that e-commerce would thrive after a long period of struggle and economic failure.
Why Should Sellers Advertise Their Merchandise on Newegg?
Newegg offers several benefits over other e-commerce platforms that sellers should consider. First, it’s a specialized website that caters specifically to consumers with high levels of product knowledge in computers and similar hardware. This built-in customer base makes it more of a buying destination than a browsing one, which means better chances for revenue.
The lack of competition also sets up sellers for success. With such a niche market, sellers don’t have to compete against hundreds or thousands of other companies and individuals to gain a few sales. If you can market just a few products well, you can rake in great income.
Why Should Buyers Shop on Newegg?
There are also several advantages for the buyer’s side on Newegg. For one thing, all Newegg sellers must pass a screening test. The company only wants to work with sellers who have high standards in customer service and delivery.
The site also has excellent product photography and detailed product descriptions. The reviews for most products tend to be detailed and accurate, which helps consumers make informed buying decisions. The well-structured search engine offers another perk for buyers who don’t want to waste time scrolling through page after page of irrelevant results.
Are There Any Cons to Working with Newegg?
The main strike against Newegg (depending on how you look at it) is the limited number of product categories. If you sell something outside the realm of computers, computer peripherals, video game equipment, and the like, you might have trouble finding customers. Additionally, because you’re selling to a highly educated and sometimes prejudicial audience, attempting to sell non-brand name products might become an uphill battle.
However, for sellers with the right business model, Newegg can prove extremely profitable. Research the website and its customers so you know exactly how to brand your products and appeal to their sensibilities.
We’ve partnered with Newegg to make buying and selling merchandise on this e-commerce platform even easier. Are you a company selling on Newegg? Be sure to select Payoneer as your preferred payment solution! Not yet a Payoneer user? You can sign up directly from the Newegg Seller Portal, today!