Selling on Newegg marketplace – everything you need to know

Selling on Newegg marketplace – everything you need to know

Do you want to diversify your online business? Expanding onto new marketplaces is one of the easiest and most effective ways to reach new customers and increase your sales.

You may have already built a strong online business by trading on Amazon and eBay, as well as growing your website sales, but you could be missing out on some high-value niche audiences if you don’t cast your net wider.

Consider Newegg, one of the biggest marketplaces in the U.S.

Selling on Newegg

While Amazon’s exponential growth over the past decade has overshadowed many of its competitors, Newegg quietly built a strong niche marketplace for technology lovers.

Having previously been a first-party seller website, Newegg launched its marketplace in 2010 and generated more than $2.5 billion in revenue in its first year, according to eCommerce Worldwide. As of 2017, it has over 32 million registered users .

Newegg is best known as a platform that sells a range of technology, including desktops, laptops, mobile devices and other accessories, like video games. But it has gradually expanded its offering with categories such as apparel, arts and crafts, jewellery and home goods.

Tech-savvy men between the ages of 18 and 35 are Newegg’s biggest audience. But by broadening its offering beyond technology, it has expanded beyond this demographic.

The categories with the highest year-on-year sales are office supplies, consumer electronics, health and beauty, and automotive, according to godatafeed. This proves that the marketplace is no longer just for sellers of tech products.

Rules of the roost

As with most online marketplaces, there are a few rules. Among these,  the most important operational rules on Newegg are:

  • Ship within 48 hours: Newegg expects you to ship within 48 hours and will cancel the order if not shipped after 72 hours
  • Excellent customer service: enquiries must be responded to within 24 hours
  • A 30-day returns policy on products sold

You can learn more about Newegg’s policies here.

Newegg Business

Newegg provides sellers with the opportunity to reach both consumers and other businesses.

As well its B2C marketplace, Newegg provides a B2B marketplace, Newegg Business, that allows you to sell in bulk to over 150,000 businesses in the US.

Both US and non-US based sellers can apply to enter this marketplace. Commission ranges between 10 and 15 percent for US sellers and is fixed at 12 percent for global sellers.

Newegg counts small, medium and large business, educational institutions and government among its B2B audience.

Shipped By Newegg

The US marketplace also offers its fulfillment program called Shipped by Newegg (SBN).

This works similarly to Fulfilled by Amazon (FBA), where you send your inventory to Newegg’s fulfillment center and they do the rest. Like Amazon, SBN also provides the service to ship your orders sold on platforms outside of Newegg. Their services are designed for companies of any size, from small to large.

Newegg Premier

Newegg launched Newegg Premier, its own version of Amazon Prime, in 2014.

Newegg Premier grants you access to its highest spending customers and provides you with the ability to scale your shipments with Shipped By Newegg.

The membership program offers sellers a range of benefits, including:

  • Access to Newegg’s biggest spenders (who spend 50 percent more than normal customers)
  • Exclusive marketing programs including mailshots and homepage exposure
  • Enhance your storefront with the Newegg Premier badge

The operational standards required to join Newegg Premier are significantly higher than on the general marketplace. The marketplace has even offered up these benefits to the family and friends of the members. They are allowed have four other individuals avail of the benefits as well, which is not only a huge benefit to the members, but gives the sellers that extra bit of exposure.

To be eligible for Newegg Premier, sellers must:

  • Have a consistent customer satisfaction rate of at least four eggs
  • Never run out of stock
  • Ship 90 percent of orders within 24 hours

To learn more about joining Newegg Premier, check out Newegg’s pdf guide.

Access the US market

One of the most appealing aspects of Newegg is the opportunity it provides to trade in the USA with fewer barriers than normal.

It’s a great way for non-US based sellers to reach a tech-savvy, high-spending niche in the US. It’s an attractive option for any seller looking to expand their business into the USand beyond Amazon and eBay. It acts as the merchant of record which means you will have no liability regarding U.S. sales tax.

The same benefits apply to global sellers as domestic sellers, including access to Shipped by Newegg.

Interested? Learn more about the Global Seller program here.

With our e-commerce help desk, you can successfully manage customer support from Newegg, Amazon, eBay, Allegro, Shopify, Magento and more – in one  centralized inbox.

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Liam Keegan

Liam finds the golden nuggets in eCommerce so you don't have to. Business growth, customer support and feedback are just some of the things he eats for breakfast at XSellco.

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