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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4/22/2008 4:57:46 PM
Speaking as a guy who regularly ships lots of stuff, I can say that probably one big reason is that there are massive increases in costs when shipping something to Canada, rather than within the US and it's territories (like Puerto Rico). From MN, I can ship to Hawaii for about half the cost it would take to send something to Canada...which at that point is a couple thousand miles closer.
I believe a lot has to do with import tariffs and taxes, but perhaps also something systemic with UPS, FedEX, USPS, etc. in how they charge for shipping to Canada.
Full disclosure: while I am American (f#ck yeah!), my wife is Canadian, and I have quite a bit of experience shipping to and from Canada. Recently, when buying gifts for her family in Canada, I just go to the Canadian websites of Canadian businesses (like Best Buy) and purchase that way. You can't buy something on BestBuy.com and send it to Canada, but you can buy it on BestBuy.ca and it's no problem.
So don't knock NewEgg et al for not wanting to ship to Canada - the problem lies not with the vendor.
4/22/2008 4:59:36 PM
Oh, and forgot to mention my quick example - I used to sell lots of stuff on eBay (until they changed their rules again)...as a rule of thumb, I doubled my USPS shipping costs when a Canadian buyer bought an item.
It's pretty much 50/50 whether or not that tactic actually covered my shipping cost. Yes...it's that bad. Double or more.
4/22/2008 6:27:32 PM
MMM I guess that's where Newegg.ca might come in handy.. If they ever get around to doing it. I see the url is reserved. (A coming soon msg from the site but it's been there for some time)
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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