Product Update: We Teamed Up with Newegg to Launch Newegg Capital, Powered by Payability

Leading online marketplaces wouldn’t be successful without the small businesses behind them. But, these small online sellers don’t always have access to the right resources and tools to grow their businesses. And, as I pointed out recently, it’s important to enable these businesses; their success benefits the platforms they sell on, the consumers that buy their products, and the economy at large. 

One critical resource small online sellers have difficulty accessing is financing. Traditional banking isn’t geared towards the unique and unpredictable nature of eCommerce. There’s credit checks, weeks-long approval processes, and funding limits. 

Recognizing this urgent need in the market, Payability and leading online marketplace Newegg teamed up to provide a seamless financial solution for their rapidly growing third-party sellers. 

Let’s look at the opportunity of selling on Newegg, and how Newegg Capital, Powered by Payability gives online sellers access to the capital they need to invest in and grow their businesses. 

Why Sell on Newegg? 

Newegg has been a PC components and electronics retailer since 2001. In almost two decades, they’ve built a loyal and savvy customer base of over 40.2 million members that’s always looking for the greatest in tech products. In 2011, they launched the Newegg Marketplace, opening up their platform to new product categories over the years. 

Newegg is no longer just an electronics marketplace. Categories like home automation, automotive and industrial, health and sports, apparel and accessories, and toys are showing promising growth. Now, you can sell in just about every category on Newegg. They also offer Newegg Premier, a membership subscription that gives users exclusive access to deals and services like free shipping and returns. 

For growing online sellers, they’re a go-to marketplace for diversifying your brand and expanding your audience reach. 

Special Offer: Sign up to sell on Newegg before November 30, 2020 and receive the first two months of your Elite membership at no cost just for being referred by Payability. 

How to Sell on Newegg

You can sell on Newegg Marketplace in just a few easy steps. 

1. Apply for a Newegg Account 

First, apply and create an account. During this process, you’ll answer some basic questions about your business like: 

  • Location
  • Number of employees 
  • Type of business like retailer versus manufacturer
  • Type of products you’ll sell
  • If you sell your own brand 

After approval, your account will automatically set to Newegg’s free Standard Membership plan. You can upgrade your account to other paid tiers to boost your brand. We’ll cover more about the difference in Newegg’s membership tiers below.

2. List Your Products

After creating your account, you can list your products in your Newegg seller portal. Remember, Newegg isn’t just an electronics marketplace anymore. They likely have your product category available. But, if they don’t, they can usually create the category for you. For each of your items, you should include the following basic information: 

  • Industry and subcategory
  • Item condition
  • Product display title
  • Manufacturer
  • UPC/ISBN item code
  • Product description (including any images)
  • Price
  • Inventory quantity available
  • Shipping

When listing your items, there are best practices to follow to ensure customers find your products and have confidence to buy them. 

  • Using correct categories
  • Detailed, complete, and accurate product attributes and descriptions 
  • Clean and accurate product images
  • Competitive pricing
  • Affordable shipping 

Also, it’s always a good idea to read and understand Newegg’s Marketplace Policies to ensure you’re following their rules and guidelines. 

Pro Tip: If you sell the same products on other marketplaces, you will have to manage separate product information for each marketplace to meet their unique requirements. Otherwise, your listings could be incomplete. If you have a large product catalog, you can consider upgrading your Newegg membership, which gives you access to their API to do bulk uploads of your product data. 

3. Promote Your Products

After creating your product listings, you should work on promoting and advertising them to drive sales. For Newegg, there’s two key ways to bump up your listings on the competitive marketplace. 

General Promotion

Within your seller portal, you can apply “general promotions” to your Newegg product listings. This allows you to adjust your MSRP price and shipping rates for promotional discounting. Newegg also gives you full control over who can see the discounts, length of the promotional period, and setting an inventory quantity limit. 

Advertising 

Like other marketplaces, Newegg also gives sellers the opportunity for Sponsored Product Ads. Their Sponsored Ads use keyword targeting to match a customer’s search terms with your relevant product listings. This helps drive visibility of your products, especially as a new seller. 

Pro Tip: Remember that you can use other marketing tactics to drive customers to your Newegg listings like your own social media accounts, email marketing, and Google Adwords. 

4. Ship Your Products

Like any marketplace, shipping is an important part of the customer experience. Not only do you want to have favorable rates, you want to be sure you can deliver on your promise. 

While you always have the option to handle shipping yourself, sellers can also leverage Newegg’s own fulfillment service, Shipped by Newegg. Similar to Amazon FBA, Shipped by Newegg allows you to send your products to one of their warehouses where they’ll pick, pack, and ship your orders for you. 

We’ll cover Shipped by Newegg in detail below. 

5. Get Paid by Newegg

The last step to selling on Newegg is making sure you receive your funds for your sales. Newegg pays its sellers weekly via ACH direct deposit into your designated bank account. You can manage these payments in your seller account.

Within your seller account, you’ll also have access to different business reports to analyze your seller performance, sales revenue, and commission rates. Note that Newegg’s selling fees range from 8% to 15% depending on the product category. 

While Newegg pays you weekly for your sales, new and growing online sellers often need more capital and/or faster payouts to continue to grow their business. That’s why Newegg and Payability teamed up to offer Newegg Capital, Powered by Payability. Our market-leading financial solutions Instant Access, accelerated daily payouts, and Instant Advance, a cash advance, will be available right in your account. 

Learn more below about how Newegg Capital can provide the financing you need for marketing, inventory, and other ways to grow your online business. 

For more on Newegg’s payment terms for sellers, check out our post on how Newegg Marketplace payments work

Newegg Membership Tiers Explained

As a new seller on Newegg, one of your first decisions is choosing your membership tier. While a Standard account is free, you could pay a monthly subscription for added perks. The Professional tier starts at $29.95/month and Enterprise at $99.95/month.

The main benefits of both Elite Memberships are: 

  • Increase number of item listings 
  • Access to their API for bulk data uploads like large product catalogs
  • Customizing your seller storefront
  • Eligibility for their curated marketing campaigns like social media, video, and more
  • Personalized post-purchase email
  • Discounts for Shipped by Newegg Fulfillment
  • Discounts for Newegg Shipping Label Service

Choosing a tier comes down to a few things — size of your product catalog, shipping volume, and whether Newegg is a major selling platform for your business. If you’re doing a majority of your business on Newegg, then paying for an Elite Membership will be worth it. 

New Newegg sellers referred by Payability who sign up to sell on the Newegg Marketplace before November 30, 2020 will receive a complementary Elite membership for the first two months.

Shipped by Newegg 

Shipped by Newegg (SBN) benefits both customers and third-party sellers. When you enroll in SBN, your product listings will include the special Shipped by Newegg logo that customers associate with free and fast shipping. This can help boost your sales. 

Newegg realizes that most online sellers aren’t logistics experts. Outsourcing fulfillment to them can help save you time and money. Here’s how Shipped by Newegg works:

  1. You send your inventory to Newegg.
  2. They store it in one of their strategically located warehouses.
  3. Your customer orders from you. 
  4. Newegg picks, packs, and ships your products to your customers. 

To use these fulfillment services, sellers do pay fees based on package size, weight, storage length, and returns. Your fees will depend on the types of products you sell and their shelf life. See their shipping fees here to calculate your costs. 

Overall, most sellers still save money using a service like Shipped By Newegg versus fulfilling items yourself. They can leverage volume discounts and warehouse optimization that you couldn’t achieve otherwise. Also, it gives you peace of mind knowing that you can guarantee free and fast shipping to all your customers (you can use SBN for your non-Newegg orders too!). 

Introducing Newegg Capital, Powered by Payability 

Another big advantage of selling on Newegg is access to Newegg Capital, Powered by Payability. We partnered together to provide Payability’s friction-free cash flow and funding solutions for online sellers on Newegg Marketplace. Newegg Capital is a turn-key financing solution right in your portal. 

Why does it matter? You need access to capital to keep your online business running smoothly. You can use these financing solutions to invest in marketing, inventory purchases, shipping costs, or cover any other expenses to grow your business. 

And, funding approval is fast (24-hours) and based on eCommerce-factors like sales history, product categories, and supply chain. It’s about the health of your online business, and not your personal credit history that traditional banks use.

Newegg Capital gives you access to Payability’s market-leading solutions: 

Instant Access: While Newegg pays out to sellers weekly, you can access your cash next day, every day with Instant Access. Having the ability to cash out every day gives you more flexibility. You’ll always have money in the bank to cover unexpected expenses like shipping or marketing. For Instant Access, approval is based on account health and sales performance, with no credit checks. You can receive funding in just 24 hours, which is critical if you need to cover last minute expenses fast. 

Instant Advance: If you need access to a lump sum of cash for bigger costs like that next round of inventory, then Instant Advance provides a capital advance based on your future sales on Newegg AND any other marketplace you sell on like Amazon. Sellers usually receive around 75% – 150% of their monthly sales and they go from $1,000 to $250,000. As with Instant Access, there are no credit checks and sellers can get approved as soon as the next business day. 

Both Instant Access and Instant Advance are debt-free and equity-free. An Instant Advance is not debt, but a purchase of your future sales, while Instant Access makes it easier to self-fund by giving you your own revenue faster. 

Payability is excited to bring these working capital solutions to Newegg sellers, so you can continue to invest in and expand your online business!

Keith Smith
Keith Smith is the Co-founder and CEO of Payability, a FinTech company that provides financing and payment solutions to eCommerce sellers. Its patented technology utilizes machine learning algorithms to underwrite customers based on sales quality and historical eCommerce performance - rather than simply looking at personal credit scores. Previously, Keith founded and ran multiple startups, including; CyberMortgage, Zango, and BigDoor. Keith lends his time to early-stage startups via Techstars and serves as an adviser, investor, and board member for multiple tech startups.

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