NewEgg Poised to Take on Amazon with NewEgg Mall

Rob Williams

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Well well, it looks as though popular e-tailer NewEgg is looking to be much more than a simple computer hardware e-tailer, and who can blame them? They have the crowd, so launching a new service split off from their primary business seems like a good idea. That's where NewEgg Mall comes in, a service that's poised to compete with Amazon.com, on a small level at first, of course.

The service is up and running, but according to Kris at DailyTech, it's not to officially launch until late May. So consider this a "beta" phase. Like Amazon, sellers are able to sign up as a merchant and begin selling their wares, and apparently NewEgg's final sale fee works on a similar scale to Amazon's. That leads me to wonder what motivation there would be to move on over, but since neither service charges you unless there is a sale (correct me if I'm wrong), then the more the merrier.

Though not officially launched, merchants can sign up now, if interested. This is a new look for NewEgg, and I'm looking forward to seeing where it will go. But for now, I'll just continue being disgruntled since they don't ship to Canada, despite demand...

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The end result is, well, Amazon. Consumers can buy from the NeweggMall site, and products are drop-shipped from the reseller. Newegg takes a portion of the revenue from the sale, which it justifies by handling the portal and logistics. Depending on category, that portion can range from 6 to 15 percent, nearly identical to the revenue share structure at Amazon.com.

Source: DailyTech
 
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