The UK’s Department for International Trade (DIT) – formerly the Department for Trade & Investment – announced a partnership with US eCommerce marketplace Newegg at the start of December.
DIT is looking to use the new collaboration to showcase British tech companies and their products to US shoppers, and the link-up will see DIT launch its first B2C advertising campaign.
Newegg is an online retail business that focuses on selling tech products, and it has more than 32 million registered users around the world. Retail Connections caught up with Sophia Tsao, vice president and global marketplace head at Newegg, to hear more about the company, its live-streamed online show called Newegg Now, and its ambitious growth plans.
Tell us about Newegg, your current strategy and your USP?
Newegg Marketplace was founded in 2011 as an expansive business unit of Newegg.com. Having been a PC components and electronics retailer since 2001, our core business has since built up a loyal and savvy customer base of over 32 million customers, who are always looking for the latest and greatest in tech products.
Our technical expertise that began with consumer electronics and computer hardware has now grown to other tech-related fields such as home automation, virtual reality, automotive electronics, drones, and STEM (Science, Technology, Engineering, and Maths), sourcing products from both wholesale and third-party partners.
Incorporating this hybrid model offers our customers a premier and wider product assortment. As our assortment grows, we recognise the growing demand of our international customers seeking products from different parts of the world. This year, Newegg extended its services to 50 additional countries providing sellers and customers alike access to these new markets.
Why would a UK retailer choose to market their products on your platform, as opposed to going it alone in the US?
Marketplaces, in particular Newegg, can have a significant impact on how successful UK retailers penetrate and establish themselves in the US market. From an operations perspective, marketplaces reduce cross-border complexities that otherwise sellers would be dealing with. As they say, the devil is in the detail, so attention to localising logistics, marketing, and payment processes can easily become burdensome.
Newegg’s marketplace model takes the load off. We’ve established a logistics ecosystem capable of handling global transactions. The same goes for our payment processes. Newegg’s marketing and merchandising team stays up to date with the latest product trends and industry best practices ensuring sellers set up appropriate and effective marketing campaigns. UK retailers on Newegg are assigned a dedicated account manager that can assist with all these different aspects of the business.
Why would people shop with you rather than Amazon or eBay?
When it comes to tech products, Newegg leads on that front. Not only in assortment, but also in our technical understanding of integrating technology for everyday use. Interest in both STEM and Smart Home categories, for example, have grown steadily over the past two years. The recent launch of Newegg Now, a live-streamed show, engages customers in a new way that other marketplaces don’t. Customers tuning in can expect to receive keen insights on the latest technological trends and products. Additionally, products being discussed can be purchased at a discount once the segment concludes.
Your name’s cropping up quite a bit over here at the moment, why is that? What are your plans in Europe?
Newegg’s recent global expansion efforts have been well received by European sellers. Many of them are attracted to the various services and programmes offered, and we help sellers streamline their international operations by utilising our key partners who know the ins and outs of individual markets.
In the past two years, we’ve hosted a Newegg Seller Day, a conference that connects European sellers to industry experts. The conference propagates knowledge sharing as it relates to strategy and execution. We hope that as we host more conferences in the future, more European sellers will see the business potential and ease of selling globally. Stay tuned for more news in 2018.