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In sales and marketing, we generally use the phrase ‘spoiled for choices’ to describe the consumers’ dilemma of having too many buying options.
Today, many online sellers also face the same challenge. With dozens of online marketplaces on the block, sometimes it becomes quite difficult to pick the most suitable selling platform.
Besides the obvious picks like Amazon and eBay, some seemingly under-the-radar platforms also hold great potential for online sellers.
Case in point: Newegg.
If you are one of those sellers interested in selling on Newegg besides Amazon and can’t decide between the two platforms, continue reading on.
This article will help you get around this dilemma .
Once dedicated to electronic accessories, Newegg has transformed into a big e-commerce hub for all sorts of products since its re-launch in 2010.
The growth afterward has been so impressive that Newegg is now the fifth-biggest web-only marketplace in the US. On the other hand, it is also maintaining its dominance in the electronics space where Newegg is the second most popular electronics retail website in the US.
It’s only natural that sellers have started comparing Newegg to Amazon after that remarkable performance.
If you’re also looking for a Newegg vs. Amazon comparison for sellers, you’ve landed at the right place. Here, you’ll find out an impartial comparison of the two platforms from the selling standpoint.
Whether you’re starting your journey as a seller or diversifying your selling portfolio and trying to reach out to new markets, this comparison guide will come in handy.
Before diving deeper into the features of both platforms and their comparison, let’s have a bird’s-eye view of the Newegg vs. Amazon debate.
From the sellers’ perspective, the two platforms share various similarities. However, Amazon certainly has an edge over Newegg, or any other e-commerce marketplace for that matter, due to its sheer size, scale, and operational capability.
Before head-to-head comparison, let’s skim through some of the frequently asked questions centered on the Newegg vs. Amazon debate.
No, Newegg is not owned by Amazon. Newegg is listed as an independent company at NASDAQ by the name Newegg Commerce, Inc.
No, Newegg is not cheaper than Amazon in an absolute sense. As a seller, you will find one cheaper than the other for different product categories, listing, fulfillment, and shipping scenarios.
If we particularly talk about the US, Newegg has a better shipping record than Amazon. Newegg fulfills almost 90% of all its orders within two days whereas the same delivery time is a privilege limited to Amazon Prime users.
Newegg charges a commission between 8% and 15% per item, depending on the product category. You’ll have to pay a monthly fee if you opt for a professional or enterprise seller account.
Yes, you can now sell used items on Newegg’s marketplaces as well. It is important to mention here that Amazon only allows sellers to sell two types of used items without needing a refurbishing certificate: Kindles and software products.
A one-on-one comparison is really vital to fully understand how these two platforms stack up against each other. Without any further delay let’s compare Newegg and Amazon feature by feature.
Newegg came into the limelight as a thriving marketplace for computer accessories and other electronic appliances. Even today electronics sales make up the largest chunk of its net revenue. Besides electronics, Newegg now provides a selling-buying platform for over 20 different product categories.
Meanwhile, Amazon is known for its impressive 30+ product categories that cover most things that any consumer needs and buys on daily basis. From home cleaning products to electronics and apparel to food, everything is available on Amazon with loads of variety.
There are particular niches where Amazon is miles ahead of Newegg. For instance, the food category is nearly nonexistent on Newegg. Sellers can only list vitamins and supplements on the platform. In contrast, Amazon lets you sell a range of packaged foods and drinks. And not just for humans, you can also sell pet foods.
Verdict: When it comes to the available choice of product to sell, Amazon is a clear winner. However, if you’re a niche specialist and just want to focus on a single product category (mainly electronic accessories), then you can opt for Newegg as well.
Global outreach is another factor that sellers consider before picking an e-commerce platform as their launchpad. Both Amazon and Newegg operate in more than one geographical marketplace (region/country).
With its cross-border selling program Newegg Global, Newegg facilitates sellers in selling their products to customers in 21 countries across six continents. Newegg also provides complete fulfillment (packing and shipping services) for those global destinations.
Surprisingly, Amazon has limited global outreach in terms of marketplaces. The e-commerce giant officially operates in 13 countries.
Verdict: Newegg wins this round with its better global coverage. However, it is important to understand that this might not be that important for you as a seller. Despite having fewer global marketplaces, Amazon’s market penetration is unprecedented and which is why it has 10 times more customers than Newegg.
In short, it is possible to get better returns while operating in fewer Amazon global marketplaces than getting exposure to Newegg’s more international avenues.
E-commerce platforms taking up the entire process of picking, processing, packing, and shipping products have transformed the entire online shopping landscape. This “fulfillment” facility has enabled individuals to become sellers and introduce their own private labels.
Amazon is known for its fulfillment services. In fact, it’s one factor that has made the astronomical success of Bezos’ brainchild possible. Many other platforms have also followed in the footsteps of Amazon and started their fulfillment services. Newegg is one of them.
The platform is offering impressive fulfillment services in the US with its Shipped By Newegg program (SBN). Newegg is delivering more than 55,000 packages daily across the US from their fulfillment centers while maintaining a 2-day delivery time for almost 91% of packages.
Verdict: When it comes to fulfillment services, both Amazon and Newegg are neck-and-neck. With its 1-day fulfillment turnaround for various states on the East Coast, you can provide quick delivery with your products on Newegg. Quicker fulfillment also means faster cash/revenue flow.
On the other hand, Amazon’s fulfillment services with its 175 centers (against Newegg’s 3 centers) are tried and tested across the US and around the world. Therefore, Amazon will be the best bet if you want to sell across most US states and international markets.
Some products are more relevant and sought-after among certain demographics. As a seller, you need to know what age groups your product attracts the most. Similarly, it is important to be aware of the demographic divide of users in the marketplace you want to operate in.
As mentioned earlier, Newegg operated as a marketplace for electronic devices and tech accessories for a long time. This profile has made Newegg a more popular website among the male population of 18-35. Today, Newegg lets you list products relevant to every age group. However, its popularity remains mostly confined to the young male population.
On the other hand, Amazon cuts through all demographics with the wide assortment of product listings it allows. From homemakers to teenagers, you’ll find everyone buying from Amazon.
Verdict: If you want to target more than one consumer profile and persona with your product, then Amazon is a way better option than Newegg.
Sales commission is the lifeline for any online marketplace. It makes the largest chunk of revenue for them. Amazon calls its commission referral fee and charges it in the range of 8% and 15% for most product categories. Products falling in the apparel category entail a 17% referral fee.
For Amazon device accessories, the referral commission shots up to 45%. Also, Amazon charges closing fees on some products (particularly belonging to the media category).
Newegg has taken a leaf out of Amazon’s book and set a varied commission structure based on product categories. Interestingly, Newegg’s commission rates also linger between 8% and 15%. However, you don’t have to pay any closing fee while selling on Newegg.
Verdict: Both Amazon and Newegg more or less charge the same commissions for most products. The edge Newegg has over Amazon here is that you can sell media items on its marketplaces without paying any closing fee.
Besides commission, many online marketplaces also charge a certain seller fee for a particular selling plan. As an Amazon seller, you have two options to pick from i.e. pay a $0.99 fee for each item sold or pay $39.99 per month irrespective of the number of sold items.
Newegg provides more options to sellers with its Elite Seller Program. It offers three seller plans i.e. Standard, Professional, and Enterprise. The standard seller plan has zero fees but with limited privileges (no dedicated account manager, premium seller store, curated marketing program, and personalized post-purchase email).
The professional accounts cost $29.95/month and come with all the privileges including a 5% discount on SBN and Newegg Shipping Label Service. The Enterprise seller plan comes at $99.95/month with all the privileges and a 10% discount on SBN and shipping label service.
Verdict: Newegg fares better than Amazon when it comes to seller fees. Not just does it offer a free selling plan, its professional seller account fee is also less than Amazon. For sellers treading a tight rope with the budget, Newegg seems like a more reasonable option.
The web footprint is a crucial indicator in determining the outreach of an online marketplace. Here, Amazon performs exceptionally better than Newegg. Search for any random product on any search engine and you will find Amazon listings among the topmost entries on Search Engine Result Pages (SERPs). You can test out this web/search engine dominance of Amazon right now.
Search for a keyphrase “12v battery” and you will find Amazon search results among the top entries. For the same query, you have to search “12v battery Newegg” to find the relevant listings on Newegg.
Verdict: The winner of this round is quite obvious. On search engines, the omnipresence of Amazon is unparalleled.
Return policy is an integral part of online marketplace dealings. It plays a crucial role in determining the reputation of an e-commerce platform among its consumer base. Therefore, all the leading platforms have devised very lenient return policies for end-consumer. This leniency has a contrasting effect for sellers. For them, a lenient return policy means dealing with a ruthless product return regimen.
Both Amazon and Newegg have the same return policy for sellers. They require sellers to provide a 30-day money-back guarantee to customers. Buyers can return the product for any reason within 30 days after receiving it. You can set a more lenient return policy (e.g. 90-day money-back guarantee). However, a 30-day return is a minimum requirement you need to comply with as a seller.
Verdict: With the same consumer-friendly return details, there’s no winner in Amazon vs. Newegg return policy debate.
With increasing competition among sellers across online marketplaces, you need to have a robust promotional plan to cut above the rest. Both Amazon and Newegg offer various promotional avenues through which you can market your listings more effectively.
On Amazon, you can use PPC marketing, discount offers, and complimentary add-ons to get a better podium for your product. You can also enroll in Amazon’s Vine Program to get your product reviewed by seasoned most reliable customers. Those authentic reviews can eventually translate into a sales bump. You can also promote your Amazon listings via Facebook ads and on other social media platforms.
Newegg lets its sellers promote their listings through several of its “merchandise vehicles”. This includes Shell Shocker, Daily deals, flash sales, and promotional emails.
Verdict: Even though both platforms offer ample ways for product promotion, Amazon remains slightly ahead with its more accommodating promotional system.
Amazon and Newegg offer sellers to reach out to their most prized consumer base with their Prime and Premier programs respectively. However, you need to fulfill certain criteria to become eligible for those programs. For selling to Amazon Prime members, you need to:
Newegg Premier gives sellers access to the highest-spending customers of the platform (those spending 50% more than regular customers). You need to fulfill these requirements to become a Newegg Premier seller:
Verdict: With their equally demanding eligibility requirements, both Amazon Prime seller and Newegg Premier seller are on the same plan. However, in terms of outreach, Amazon Prime sellers can sell to a larger lucrative consumer base.
We hope that the above discussion helps you understand both marketplaces in a comparative sense. To sum it up, you should sell on Newegg if you are:
On the other hand, opt for Amazon if you want to:
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