Print 69 comment(s) - last by FITCamaro.. on Apr 28 at 9:59 AM

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 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

Newegg Mall is also the same division that manages the forum, a community of blogs and forums created to provide product feedback on products featured at  Certainly this forum will also be used for the new categories featured at Newegg Mall as well.

Newegg representatives tell DailyTech 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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RE: But...
By Mitch101 on 4/22/2008 5:39:27 PM , Rating: 5
NewEgg shipping prices in the last year have caused me to rethink a few purchases.

$5.99 shipping on a SD memory or USB flash drives? Come on guys.

RE: But...
By HotdogIT on 4/22/2008 5:49:46 PM , Rating: 4
They have a flat shipping cost they themselves are going to have to pay. I agree it's awkward and stupid to pay 6 bucks to ship a ~10 dollar part, but they're not unique in that regard.

RE: But...
By Basilisk on 4/22/2008 7:20:14 PM , Rating: 5
I've written to the Egg on this topic, and received a canned reply: I wrote something like "it's a shame you can't offer USPS shipment of small, inexpensive items -- like memory, MicroSD cards and some cables -- as you could cover packaging and postage for under $2. It would make shopping at the Egg more reasonable for small items." They responded with something like "We're sorry you are unhappy with our shipping costs as we try to satisfy all our customers."

Their profit model doesn't include encouraging low-cost orders. More surprisingly, they make little effort to reduce shipping costs when you bundle numerous small items into a decent total cost: I've been driven to other sites when ordering $60+ of numerous cables as the Egg didn't drop the effective per-item shipping cost as many vendors do. Then again, I don't know of any other place that regularly uses such ill-matched packaging: over the years I've spent $10K+ with the Egg and most of the items have occupied -well under- 20% of their box size. I've received minor items in a 1 cubic-foot box several times.

They aren't the worst, however: I once received a tiny item barely larger than a resistor in one of those cubic-foot boxes. Had to spread all the plastic "popcorn" across the floor to finally find the piece. Sigh.

RE: But...
By murphyslabrat on 4/23/2008 2:43:29 PM , Rating: 3
I just checked, and a $0.89 +$2.29 item went to $11.03 with an order of $10. There was no kind of "volume savings" listed, and I know that my total shipping costs for past orders have not been the sum of the shipping quotes.

RE: But...
By BoxCutterLou on 4/25/2008 4:26:04 PM , Rating: 3
I've received minor items in a 1 cubic-foot box several times

I have to reply to this, I work for a "Shipping/Supply Company", although I'm nolonger involved in the shiping process, I am involved with cost, contracts, etc. They simply do this because of cost. It cost too much to order different size boxes, I know it seems like a waste but you would be surprized at how much they save doing that. I know you guys like your numbers on this cite but you'll just have to trust me on that fact. As well, recieving your items in larger packages is better for you anyways. You should see what some of those very popular shiping services put your stuff through.

RE: But...
By Samus on 4/23/2008 1:34:07 AM , Rating: 2
UPS's minimum shipping price is about $4.00, and that's within the same zone.

It ain't the postal service.

RE: But...
By PWNettle on 4/23/2008 3:07:40 PM , Rating: 3
Paying shipping on a cheap items sucks but it's reality. Obvsiously there is going to be a minimum shipping cost. So, don't buy that one cheap item alone - bundle it with other stuff you want, or go to a retailed and have them order it (so they pay the shipping).

There are tons of advantages to shopping online but obviously buying one cheap item at a time isn't the most effective way to shop online.

RE: But...
By mattclary on 4/23/2008 8:48:09 AM , Rating: 2
It sucks for small orders, but most orders of 2 or 3 or more items, shipping works out pretty well. Over the last several years I have dropped a good $20k+ with them. Have a small computer repair business and order stuff from there VERY regularly.

RE: But...
By Seemonkeyscanfly on 4/23/2008 11:39:10 AM , Rating: 2
Try this...
find a small box. example: 4in x 4in x 4in. Put nothing inside. declared value under $100.00. Take a friend address (or your own) and go to a UPS store and ask them for the complete ship charge. Do not go on-line for the ship rate. If you ship enough items you'd already know that the on-line shipping cost is always several dollars cheaper then the real final cost that you are bill and/or charged.
Remember some one at UPS (any shipping company) is feeding their child, paying rent,... off the $5.99 they are charging you. No one is working for free. Add to this that the gas price is going up like it is. It will not be long before nothing will ship for under $10 or $15.
I suggest you just find a place that gives a fair rate when you purchase multiple items and always buy more then one item at a time.

RE: But...
By feraltoad on 4/23/2008 5:40:42 PM , Rating: 2
Unfortunately, Newegg doesn't combine shipping, add an item and add some shipping charges regardless of weight. I guess they want to subsidize the shipping of other items they ship for cheap. Buying multiple items at Amazon will save you money.

I have to pay tax on all Newegg purchases since they have a distribution center in Tennessee. After factoring in Newegg's shipping charges I can almost always purchase items cheaper elsewhere. Find you what you want on Newegg, and buy it somewhere else is how it goes for me usually.

RE: But...
By Polynikes on 4/23/2008 12:19:25 PM , Rating: 2
True, but there are plenty of more expensive items with ridiculously cheap 3 day shipping or free ground shipping.

RE: But...
By BMFPitt on 4/24/2008 3:43:07 PM , Rating: 2
I just wish they had a warehouse in Delaware, rather than NJ. That way I'd still get next-day shipping, but wouldn't pay sales tax.

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