Newegg hatches direct-to-consumer initiative

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Newegg hatches direct-to-consumer initiative

By Dan Berthiaume - 05/27/2020

A tech-focused e-tailer is offering manufacturers a chance to better engage with customers on its platform.

Newegg is unveiling a direct-to-consumer (D2C) program for vendors. The e-tailer has been developing its D2C program for six months and recently completed an initial pilot phase that Newegg says yielded a 102% year-over-year increase in unique visitors and 87% increase in sales during that same time period. Following completion of this initial pilot phase, Newegg is now opening its D2C program more broadly to additional vendor partners currently selling on its site.

As part of the program, Newegg’s marketing team works with each D2C partner to reach specific demographics via a suite of lead-generation tools. This includes social and influencer marketing, content production, email marketing and select SEM/SEO tactical elements. 

These marketing efforts are designed to reach targeted customers at multiple touchpoints and drive them to learn more about the vendor’s products on Newegg.com. Typical D2C engagements include targeted customer marketing, optimization of the on-site shopping experience, and logistical support. 

Participating vendors retain full control of the shopping experience on Newegg.com, including brand and item page management and full pricing control throughout the campaign. Newegg provides visitor analytics and customized reporting to measure campaign success and refine future campaigns as needed.

D2C partners also have access to Newegg’s enterprise logistics services, including reverse logistics management and customer service and support. Vendors can outsource logistics services to 3PL providers as needed.

“D2C represents the next big growth opportunity for e-commerce, and Newegg gives manufacturers a direct path to reap the rewards of a D2C campaign with very little effort,” said Anthony Chow, Newegg global CEO. “By extending our expertise in all aspects of e-commerce – from marketing to merchandising to logistics – we bear the heavy lifting on behalf of our vendor partners to help them deepen customer engagement and increase sales.”

eMarketer has estimated direct-to-consumer online sales will grow 24.3% to $17.75 billion in 2020, although the COVID-19 pandemic may negatively impact that growth.

Newegg is headquartered in City of Industry, Calif., with North American distribution facilities located throughout the U.S. and Canada.