Newegg Guns for Amazon
April 22, 2008 12:30 PM
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The world's largest computer etailer poises itself as an alternative to the world's largest etailer
Newegg, often heralded for its fast shipping times and high-tech shipping facilities, isn't happy with being the largest computer e-tailer anymore.
The company today announced
, a spinoff of the Newegg.com website and business model. Like Amazon, NeweggMall gives smaller retailers an outlet to showcase their wares but uses Newegg's logistics tracking and content management system.
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.
Newegg Mall is also the same division that manages the
, a community of blogs and forums created to provide product feedback on products featured at Newegg.com. Certainly this forum will also be used for the new categories featured at Newegg Mall as well.
Newegg representatives tell
the new marketplace will officially launch on May 27, 2008, though the site appears to be taking orders already. More information is available from
the Newegg Mall About Page
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Newegg Should Stick To Strengths
4/22/2008 3:40:30 PM
This move is akin to Newegg launching an auction site to take on eBay.
Newegg will continue to be a leader for computers and consumer electronics. But I doubt they'll even make a dent in Amazon's market.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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