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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Lowest prices galore.
4/22/2008 7:44:52 PM
I think a better approach is to offer lowest price quotes on select merchandise such as sites like pricegrabber.com. It's probable that in the future, more etailers will offer their wares on their own website, thus bypassing the need to go directly to amazon, newegg, or others to save on additional fees incurred for each sale transaction.
Still, for computer parts, newegg has the best selection and better than the bricks and mortars - "Frys Electronics." As for MFR rebates, newegg always delivers fast, and Frys seems to take the longest.
What is unclear is that some small etailers list their wares on big etailer sites, then may offer lower prices when purchased directly versus purchases from the big etailer sites. This is akin to booking travel arrangements directly versus buying a package from a popular internet travel company. Perhaps all these product listings could invariably make searching for items at the "lowest price" much easier for the consumer.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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