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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 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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funny - I thought it was the other way around
By bigpow on 4/22/2008 7:02:03 PM , Rating: 3
I've been with both (newegg and amazon) since as long as I could remember.

I have to say, in the beginning, newegg was super awesome since they had the lowest price and very often, with free shipping.

Today, newegg is a shipping charging price gouger.
I still buy from newegg, but only if it's the cheapest price and/or comes with free shipping.

amazon, on the other hand, is starting to sell computer stuff. Although the price is not that good, but it's always free shipping (2-day for me) and no tax.

I can see, in the near future, I'll be using amazon even for my pc parts purchases.

RE: funny - I thought it was the other way around
By cubby1223 on 4/23/2008 4:48:42 AM , Rating: 2
Seriously, how hard is it for people to understand?!!

Free shipping == higher base price

By glennpratt on 4/23/2008 9:14:50 AM , Rating: 2
Amazon has very low shipping costs, while maintaining competitive prices (at least in my experience). They also have more reasonable shipping on small items. And their free shipping rarely means higher base (I cross shop all the time). I'm buying a TV from them that has free shipping, and it's by far the lowest price anywhere, regardless of shipping (which is $70+ on most sites).

Oh, and then there is Amazon Prime...

By crimson117 on 4/23/2008 12:27:26 PM , Rating: 2
Amazon Prime is really nice and I use it myself, but there's no way it makes money for them.

Well, it might help to drive sales, but 2-day shipping is not cheap.

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