Newegg Marketplace, A Loyal Following, and Your Ecommerce Portfolio
Newegg makes a few claims that seem mighty impressive to any e-merchant. For starters, they claim more than 22 million loyal customers – loyal being just as key a term as 22 million, because where there’s loyalty, there’s motivation to buy.
They also state that they have the lowest commission rates of any major marketplace (and their rates already include credit card processing fees). Put two and two together and it makes sense that Newegg comes across as the optimal place to find a high return on your investment.
But is that true?
Newegg opened their site to sellers (via Newegg Marketplace) in October, 2010. However, opened is a tricky word here. Newegg is actually an invite-only marketplace, meaning that you could apply to be a seller, but Newegg doesn’t have to accept you. Here are some of the company’s minimum requirements for sellers to live up to:
- Customer satisfaction – Newegg boasts some rather favorable customer satisfaction ratings, and they’d like to keep it that way. Responses to all customer service inquiries must be made within one business day by sellers
- Shipping – Every order on Newegg is shipped within 72 business hours, thus sellers must commit to this timetable. If that seems beyond one’s capabilities, Newegg does offer Shipped by Newegg, where the company stocks your inventory and ships the product on your behalf
- Warranties/RMAs – There’s a standard return policy of 30 days for a refund or replacement. RMAs are processed within 72 hours
If the idea of being a part of an invite-only sellers club attracts you, then Newegg is up your alley. Their “invite only” approach helps them ensure the quality of their sellers, which their customer base is made aware of. Being a seller on Newegg means you adhere to specific standards, most of which are customer-based anyways, and typically good business practices.
What sells on Newegg?
Newegg has more than 75 product categories that sellers can be a part of, including appliances, jewelry, baby products, home improvements, toys, beauty and more. Some of the more popular products are automotive, jewelry, watches, home improvement and toys/games.
Okay, what’s the cost?
The cost will vary because it’s commissioned based. However, it’s worth noting that there are no additional costs or fees beyond commissions. Within that commission fee, sellers have access to Newegg’s marketing programs, including their popular email program, absolutely free.
Also, because they have an “invite only” approach, Newegg Marketplace team members are known to work one-on-one with their sellers. That being said, Newegg is a great venue for sellers who are looking for a long-lasting ecommerce relationship. That’s not the case for all sellers. Some sellers are looking to dabble in every marketplace available. In that case, the time investment you might find yourself providing to Newegg may not be worth your while.
But how can you tell for sure? Figuring how what marketplaces are best for you and your e-merchant endeavors takes time and effort. It requires in-depth analysis of your industry, of the numbers provided by each marketplace, and by your goals and expectations. To learn more about whether Newegg is the right fit for you, call OperationROI at 1-888-277-5329 or fill out our contact form.