How to Sell on Newegg Marketplace? The Guide

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Diversifying an eCommerce business is the way to find new customers and explore new opportunities. By expanding into a new marketplace, you bring your products to a whole new group of audience, which can increase your sales incredibly with a bit of luck and the right approach.

You may have already built a strong online presence by trading on Amazon, as well as setting up a shopify store, but you can be missing out on high-value niche audiences if you don’t try casting your net wider. Then why not considering Newegg, one of the biggest marketplaces in the U.S?

While major brands do have official seller stores on Newegg, this platform is still accessible and promising to any small and independent business out there. Are you one of those entrepreneurs interested in expanding your business? Then you have come to the right place to learn how to sell on Newegg.

What is Newegg?

Newegg is a tech-focused eCommerce marketplace that attracts many buyers seeking new, used, or renewed consumer electronics, computer parts, gaming equipment, and entertainment items. Visitors can also buy non-electronic goods on this eCommerce platform too - such as sports and fitness products, luggage, jewelry, office supplies, and more.

Being an award-winning platform, Newegg currently has over 32 million+ buyers from 50 countries worldwide. The site launched in 2010 and amazingly generated over $2.5 billion in revenue in the first year. The presence in many countries let US-based consumers buy and sell products online in the country, Canada, and many other regions.

While Amazon has exponentially grown over the last decade and overshadowed many competitors, Newegg could still quietly build a healthy niche marketplace for tech lovers. The site’s primary biggest audience is tech-savvy men from 18 to 35 years old.

By steadily broadening the products, Newegg continuously expands its demographic with office supplies, health and beauty, consumer electronics, and even automotive items. In 2020, Newegg processed over 14+ million packages, gained 4+ million legit customer reviews, and has 2.7k popular brands selling on the site.

Why should you try selling on Newegg?

By selling on Newegg, you can have access to all of Newegg’s marketing tools, shipping and fulfillment services, and a dedicated account manager. If you want to sell B2B, you can take advantage of the Newegg Business service, which is for official businesses, healthcare institutions, MSPs, educators, and government institutions.

The other features that Newegg has for sellers are:

• Store’s authority: It gives you the complete authority to work with your catalog based on your references. You can decide how many products you want to upload on this marketplace and apply for an official checkmark.
• Ever-expanding customer base: Newegg has over 20 million best-selling items and is still expanding its audience as one of the largest marketplaces in the U.S. By using Newegg, you can understand who are the best customers for your products.
• Strong support: Marketing, service, account manager are the tools you have to empower your Newegg business, not to mention the fulfillment service so you can ship your products with Newegg and don’t have to worry about storage.
• Faster payments: The payment service of Newegg is quick and convenient, with all transactions promised to be processed within 15 days.
• B2B customers: More than 350,000 verified business customers on Newegg can be your new buyers.

More than that, Newegg is a marketplace that has gained trust from many consumers with strong satisfaction. Selling on a trustable marketplace really helps you reach new audiences and increase the brand’s credentials.

Newegg’s pros and cons

If you are not sure whether you should sell on Newegg, let’s take a look at some of the major pros and cons to selling on this well-known eCommerce marketplace:

Selling on Newegg’s pros

• A large audience base: Be selling on Newegg, you get access to the platform’s over 32 million registered users - that is a massive number of potential buyers around the world. If you have an eCommerce website or a Shopify store, you can leverage these built-in audiences to drive traffic back to your site.

• Seller programs: As mentioned, Newegg offers services of marketing and logistics for sellers. Most notably, you have Newegg Shipping Label Service, along with other marketing tools to boost product visibility on the platform and create more sales.

• A premier seller program: As you gain experience and traction on Newegg, you can qualify for the Newegg Premier Seller Program. The special membership program gives you access to the highest-tier customers, plus incentives like extra-fast shipping.

• Access the US market: One of the most appealing aspects of Newegg is the opportunity to trade in the U.S for non-U.S based sellers. Users can reach a high-spending and tech-savvy niche in America with few barriers, and expand their business beyond eBay or Amazon.

Selling on Newegg’s cons

• Fees: Commission fees are normal for all eCommerce marketplaces, but Newegg’ can add up quickly for new sellers. Commission rates for some common categories are 14% (Apparel & Accessories), 10%(Computer Hardware), 12% (Appliances), 10% (Auto & Hardware). If you choose a paid membership plan, you need to pay for at least six months in advance until you can downgrade the plan.

• Limited features for the free plan: Newegg does offer specialized marketing programs and discounts for their shipping service - but only a paid membership plan can access these features. If you don’t want to pay a monthly membership, you will only be able to access the seller portal, data feed, and on-site promotion.

How to sell on Newegg

With all the pros and cons in mind, if you are still interested in starting a new store on Newegg, here is a step-by-step guide:

Apply to be a seller

First, you need to apply to be a Newegg seller by providing basic information about your business. Here is some of the information you will be asked to provide:

• What type of seller you are (retailer/reseller, manufacturer, or distributor)
• If you are currently selling on another marketplace
• Which countries you want to sell your products into
• Which membership plan you want to sign up for (more on that later)
• Your annual sales, number of SKUs for sale, number of employees, and the amount of inventory stocked in your warehouse
• You also have the option to tell Newegg more about your business in a text field. (A separate application is required if you want to sell to China)

Newegg will contact you if your business is accepted to sell on Newegg Marketplace. Then, you can move onto listing your items.

Let’s talk a bit about the pricing plans of Newegg. There are three membership plans: Standard (free), Professional ($29.95/month), and Enterprise ($99.95/month).

Membership plans increase in additional features and add-on services, as well as discounts for the shipping service of Newegg. Each membership has different item listing capacities: you can list up to 5,000 products with the Standard plan, 25,000 with the Professional plan, and an unlimited number of products with the Enterprise plan.

If you sign up for a paid plan, Newegg will charge your credit card for the type of account on the 21st of every month. Keep in mind that if you choose the Professional or Enterprise plan, you will be locked into your membership for at least six months. After this time, if you are not happy with your membership level, you can downgrade to the less expensive plan.

List your items

Once you are approved to become a seller by Newegg, you immediately gain access to the Seller Portal - the hub to view and manage all aspects of your store, including your listings, orders, claims, marketing, and performance reports.

But first, you need to list your items on the seller page. You will have the option of creating a new item listing, batch uploading items, or creating an item from an existing list. Don’t worry if you don’t know about these, the Seller Portal will have a guide to help you through this entire process.

Promote your store

Newegg offers to pay sellers some marketing and merchandising tools to help draw traffic to your Newegg stores. These promotional tools include:

• Featuring your products on Newegg’s Eggxtra Hot Deals, Category Store, or Specialty Store categories.
• Have Newegg promote your store’s products across their social media channels.
• Appear on a banner ad or product placement of Newegg’s monthly emails.
• Conduct post-purchase email campaigns for target customers.
• List your products on affiliate sites of Newegg, like Ebates and Slickdeals.

However, keep in mind that these marketing tools are only available for paid membership plans (Professional or Enterprise plans). But, of course, you can still market your free plan’s store in all other ways like social media advertising, email marketing, or Google ads.

Ship products to customers

Once you’ve made a sale on Newegg, you need to ship your products to the customers on time and fuss-free, which is what Newegg’s shipping model is for. With Newegg’s fulfillment service, you will ship your products to one of the company’s warehouses, then they will handle the packaging and shipping process for you.

Here is how the process works:

• Once you’ve had your Seller Portal, you can indicate the items for Newegg to handle shipping, then create inventory shipments for those items.
• Follow the instructions to send your products to a warehouse of Newegg.
• Newegg will notify you when your inventory has arrived.
• When a customer orders your products, Newegg will pick, pack, and ship them to the customer’s address.

For starters, you can use this service for items that customers on Newegg order as well as inventory you sell through different sales channels. And in addition to saving time and effort when handling your own shipping, using Newegg’s shipping service can also help garner traffic.

That said, you still have to pay a few fees if you enroll in the shipping service. The first three fees vary depending on your item having a standard size or are oversized. Fees also increase if you use the shipping service for multi-channel selling.

• Pick and Pack (per unit)
• Order Handling (per order)
• Weight Handling (based on outbound rates)
• Monthly Inventory Storage (per cubic foot/month)
• Special Handling (for oversized TV screens)
• Inventory Return (for a standard size or oversize)
• Disposal (per standard size or oversize)

There are many fees to keep track of here, but there is a Newegg’s Cost Calculation tool to view and compare how much it would cost if you fulfill orders by yourself. So you can better understand how much to pay (and how much you might save) if you use the shipping service.

Receive payments

Of course, the last step when selling on any marketplace is getting paid for your sold items. Newegg pays their sellers via direct deposit (or via Payoneer for global sellers) every Wednesday into the seller’s specific bank account. You can track your settlements in the Seller Portal, but there is also an email containing payment details from Newegg when they pay you.

Since you will give up a portion of your sales as a part of the commission rate when doing business with the platform, don’t be surprised to not see your full sales price in the bank account. But those are all the steps of finishing a sale with Newegg.

How to increase sales when selling on Newegg

Now when you are about to start selling on Newegg, the next question is how to increase your profit on the site? Two simple rules to follow are:

• Follow SEO guidelines while creating your listings on Newegg: Just insert your products with random words won’t help to sell your products. Try following a set of rules regarding SEO on the eCommerce marketplace and see more people finding your business.
• Avoid selling products prohibited by Newegg: Obviously, if you sell prohibited products, you can’t earn sales and even get punished by the platform.
• Have great images: On any marketplace, images are the first thing consumers would notice when they browse the items. If you can provide great images with real-life shots, buyers are much more likely to purchase.

Ready to sell on Newegg?

Selling on Newegg can be a fantastic option for small business owners and entrepreneurs anywhere in the world, as utilizing this marketplace can unlock a huge number of potential buyers seeking products in your niche.

To get the most out of your sales potential, you can try selling on Newegg Marketplace and have your own eCommerce store. That way, you can draw attention from Newegg’s huge, existing customer base to your website; and from there, you have more control to nurture your customer relationships and encourage repeat purchases through popup, email marketing, and more.

Are you ready to find the golden eggs on Newegg? Share your thoughts about the eCommerce platform in the comments below.