Newegg Commerce Inc. just announced the creation of Newegg+, a free customer membership program. To sign up, consumers must create an account on Newegg.com, or sign into their existing account. Then, they can choose to enroll in Newegg+ at no cost.

Members will gain access to perks like free shipping and exclusive deals, Newegg said.

“Joining most retail membership clubs requires a large financial commitment that really detracts from the excitement of joining the program and the potential savings,” said Kidd Liu, senior director of business systems development for Newegg. “Newegg+ is designed to help customers shop Newegg easier from day one with outstanding free benefits. Since Newegg+ is free and the positives are immeasurable, every customer should be compelled to join.”

Newegg is holding a launch sale for members through April 28.

Newegg is No. 68 in the Top 1000. The Top 1000 database is Digital Commerce 360’s ranking of the largest North American online retailers by web sales. Digital Commerce 360 categorizes Newegg as a Consumer Electronics retailer.

What are the benefits of Newegg’s membership?

The electronics retailer said it evaluated customer needs and expectations based on feedback to decide what benefits to include in the new membership. Newegg+ gives customers a “VIP-style shopping experience” on the Newegg app and website, the retailer said.

Newegg membership features include:

• Free domestic shipping on more than 1 million products featuring a Newegg+ badge.
• Exclusive early access to new products and deals.
• Member-only deals on top of other promotions.
• Discounts on product warranties.
• Advanced return processing.
• Priority customer service assistance.

The retailer plans to continue expanding the program as it gains data from members.

“The most passionate and devoted customers anywhere loyally shop Newegg for their computer needs, so we’re glad to reward them with a special membership program that gives every member front-of-the-line access to hot new products and deals,” Liu said. “We’ve assembled amazing benefits for members and expect to continue to explore ways to expand Newegg+ in the future as members share feedback.”

Loyalty programs among Top 1000 retailers

Digital Commerce 360 distinguishes between loyalty programs, which are free to join, and paid memberships, like those offered by Costco and Amazon. Newegg’s new offering is a free loyalty program. 

Fewer than one-third of Top 1000 retailers have a loyalty program. The number of Top 1000 retailers with loyalty programs has grown 16.8% since 2019, according to Digital Commerce 360 data. The majority of the growth took place in 2020 and has remained nearly flat since. 

Though not strictly necessary, “rewards programs can be very useful for retailers both because they enable them to gather information about customers and drive certain behaviors,” Neil Saunders, managing director of retail analysis firm Global Data, previously told Digital Commerce 360.

If a retailer does choose to use a rewards program, it must have a clear purpose, he said. 

“Is it to increase loyalty, to stimulate consumers into spending more, to gather data, to improve price perceptions, and so on?” Saunders said. “Knowing the purpose is vital as it then allows retailers to work out the cost of a scheme versus the potential reward.”

Other ways Newegg appeals to consumers

Newegg was an early adopter of live shopping through TikTok and other platforms. It fully embraced TikTok Shop as part of its live shopping strategy over the 2023 holidays. The technology retailer held a 24-hour livestream shopping event on the platform for Cyber Monday, with great success, it said.

“TikTok is a great way to get Newegg in front of people who have not shopped from Newegg before,” director of Newegg studios Drew Roder said.

Newegg’s top-selling products on TikTok have been gaming related, producer Ben Tibbels said. The retailer is best known for selling computer components, but TikTok Shop customers skew younger and toward gaming items, he said. Gaming controllers and other tools for co-op games have been very popular, he said. The retailer regularly sees repeat customers on TikTok Shop and takes requests on new categories to offer through the platform.

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