Highly popular US web site Newegg who are known for their discounting has started shipping into Australia, the move is set to put pressure on local consumer electronics retailers as Newegg pricing is considerably cheaper than those offered by Australian retailers.
An example is Sandisk Extreme Pro 32GB memory cards that sell for US53 (A$57) at Newegg while at Harvey Norman the same memory card is $94.00. Shipping is $10. The new Beats Studio headphones are selling at Harvey Norman for $429 while Newegg has the same headphones listed at US$299 ($325). Shipping is $25. A Toshiba Qosmio notebook is selling at Newegg for $1,713 an almost identical spec Toshiba Qosmio at Harvey Norman is $3,499.
Newegg claim that they are expanding its reach from its existing online stores in the United States to Australia the UK, Canada, and China in an effort to grow their International business.
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The new expansion program allows consumers to order a limited range of items from the US store for dispatch to Australia and if successful Australian consumers could soon have access to the entire range of Newegg products that are applicable to Australia the Company said.
Australian visitors to Newegg are able to select their respective countries in the top left hand corner, alongside an option to change the currency shown to Australian dollars.
Selecting an individual country will also limit what is shown to what can be dispatched to the location.
What is available to be shipped to Australia already exceeds what several Australian retailers are listing as available on their web sites locally.
Newegg claim that despite several thousand items being currently listed for shipping to Australia, the retailer hopes to expand that throughout the year. Customers can also enable a “Newegg Global Eligible” filter to show just internationally-shippable products, with the cart adding estimated shipping charges, tax, and duty to orders.
Chief marketing officer Soren Mills said “”We’re extending the Newegg customer experience beyond North America, selectively addressing English-speaking countries overseas. This is an important step forward for our company and we’re taking a very deliberate approach to our international growth.”
Newegg is planning to monitor sales to Australia specially considering it is shipping internationally rather than launching a warehouse operation in each region. The extra delivery time involved with international deliveries, as well as returns, could be a problem for the company as it takes on more established retailers in Australia.
The Company claims that if Australian consumers don’t mind waiting a few days for their deliveries they will get a “significantly” cheaper product from Newegg who are known for their competitive pricing in the USA.
The Company also uses the Webcollage content delivery system to deliver expanded information to consumers.