**Neweggmall.com is no longer a website that you can visit. NewEgg shut this business down due to lack of interest.**
Neweggmall.com was created by NewEgg.com, which is one of the best consumer electronics retailers on the web. The marketplace was first created to add a different product assortment because NewEgg doesn’t sell anything not related to consumer electronics and computers. This marketplace has been around for over a year now and is gaining some momentum, but slowly. They have a lot of categories to choose from such as apparel, sporting goods, and more. They have finally opened it up to other electronics retailers as well.
NewEgg Mall plans on putting some of the listings for electronics products on their newegg.com domain. This could really push up the traffic levels to neweggmall.com and make it more of a player in the marketplace game. There are many retailers out there that are constantly looking for new places to sell their products and diversification is key to succeeding online. While NewEgg Mall may look nice, we have dug a little deeper into what they are actually providing and how it may affect you as a retailer.
They setup the marketplace much like Amazon, where consumers come in and find your products, purchase, and you ship them the merchandise. This is where it stops being like Amazon. In order to be in NewEgg Mall, a retailer has to either have or get a credit card processing account from Chase Paymentech. If you have this provider, then it should be fine, but if you do not, then you will need to get it. Where we found issue with this is that many small and medium sized retailers use Authorize.Net or Paypal to process their credit cards on their websites. They are already charged per month for this, so in order to get on NewEggMall.com, you would need to pay per month for Chase Paymentech as well, plus a per transaction fee, like any other credit card processor. So instead of NewEgg Mall creating a payment system that retailers can use without having to setup another one, they make you do it. They don’t even allow you to use your own payment provider like PriceGrabber Stores does. This also takes the risk away from NewEgg Mall and puts it on you. You are responsible for processing the credit cards, checking for fraud, and every other aspect that comes with taking credit cards over the internet. We spoke to quite a few retailers about this and they think it is a joke. If NewEgg Mall wants to compete in the marketplace arena, then they need to be setup like a marketplace. We are sure to hear more retailers complain about this.
NewEgg Mall charges you per month, the same amount as Amazon to use their services. They also charge a commission when a product sells, much like Amazon. Their commissions seem to be pretty fair at this time. The issue that comes to attention is that they are charging the same monthly fee as Amazon is, but are not providing anywhere near the same services. This just seems ludicrous to think that retailers are actually going to get on board with this if they look at all the figures. NewEgg Mall might be able to score some smaller retailers and maybe ones that want to try it out, but if they really want to grab more of the marketshare and build a successful marketplace, then they need to revamp the whole system. It looks like it was thrown together quickly without thinking of many aspects. We know that NewEgg has a great reputation and they do things well, so it is surprising that they allowed this marketplace to go live without covering all the basis of a great marketplace.
Have you checked out NewEggMall.com? If so, what do you think and how would you change it for the better?
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September 12, 2011 
0 Comments
Many third party sellers did not want to join the “Mall” because NewEgg refused to take responsibility for any issues that might arise while selling on their platform. They seemed more content on just providing the visitors and not worrying about dealing with the issues that come with bringing sellers and buyers together. Why do you think Amazon invests so heavily in customer service for all of their customers? You have a happy customer, they are more likely to come back and shop with you. While I hate to see websites shut down, it comes to no surprise due to the lack of features and support. From my original review that I put out when NewEggMall.com first came out, you can see that I was not a fan of their site or their methods.
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