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Newegg to compete against Amazon?

Posted on Wednesday, April 23 2008 @ 20:28:57 CEST by

DailyTech reports computer etailer Newegg is poising itself as an alternative to Amazon:
The company today announced NeweggMall.com, 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.



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