NewEgg Poised to Take on Amazon with NewEgg Mall

Well well, it looks as though popular e-tailer NewEgg is looking to be much more than a simple computer hardware e-tailer, and who can blame them? They have the crowd, so launching a new service split off from their primary business seems like a good idea. That’s where NewEgg Mall comes in, a service that’s poised to compete with Amazon.com, on a small level at first, of course.

The service is up and running, but according to Kris at DailyTech, it’s not to officially launch until late May. So consider this a “beta” phase. Like Amazon, sellers are able to sign up as a merchant and begin selling their wares, and apparently NewEgg’s final sale fee works on a similar scale to Amazon’s. That leads me to wonder what motivation there would be to move on over, but since neither service charges you unless there is a sale (correct me if I’m wrong), then the more the merrier.

Though not officially launched, merchants can sign up now, if interested. This is a new look for NewEgg, and I’m looking forward to seeing where it will go. But for now, I’ll just continue being disgruntled since they don’t ship to Canada, despite demand…

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.

Source: DailyTech