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Newegg Takes on Amazon Prime With $50 ‘Premier’ Service

Newegg Premier
Newegg

Newegg is the go-to website for computer geeks looking to score cheap electronic equipment. Now it's rewarding regular shoppers with Newegg Premier, its answer to Amazon Prime.

Starting Wednesday, Newegg, which boasts 25 million registered users, is offering its new Newegg Premier service for $49.99 a year. What do you get for your money?

  • Free three-day shipping, as well as discounts on one- and two-day shipping.
  • Members-only deals and early alerts for sales.
  • Free returns with complimentary shipping.

“Free expedited shipping is in itself a great benefit, but beyond that we’re including many other perks to enhance the shopping experience," Soren Mills, chief marketing officer of Newegg North America, said in statement.

Compare that to Amazon Prime — which includes free two-day shipping, as well as the ability to stream thousands of movies and videos with Prime Instant Video — for $79 a year. That price could be boosted by as much as $40, according to Amazon chief financial officer Thomas Szkutak.

Of course, Amazon sells pretty much anything you could imagine, while Newegg focuses mostly on electronics. Ponying up $79 doesn't seem so bad when you can choose from millions of items, from toothpase to sweaters to a new tablet, as well as streaming video.

Newegg does sell some other items, like home goods and automotive products. But to justify $49.99 price tag, the ideal member will probably have to be somewhat of a consumer electronics junkie.

Newegg is hoping to entice new members with a free 30-day trial and 100 free "EggPoints" — which is enough to buy exactly one USB cable on Newegg.com.