With a global revenue of US$765.7 bn in 2022, consumer electronics is one of the most mature eCommerce markets around the world. Furthermore, according to Statista, an estimated market volume of US$285.90bn with 32% user penetration in 2023 augurs well for the future of this niche in online retail. 

These stats emphasize the robust market demand for electronics products. The primary reasons for this is the way electronics have been integral to the lives of buyers ― electronics have transcended our lives at multiple levels and with the continual progression of technology, they hold an aspirational value as well. 

Considering these factors, it won’t be a surprise that Newegg, a consumer electronics eCommerce behemoth with 40 million plus registered users is a leading figure in the eCommerce space. 

With the eCommerce industry getting congested for marketplaces with no focus and the promise of this niche, building an electronics marketplace like Newegg presents an exciting business prospect. 

Build a marketplace like Newegg 

In order to build a marketplace like Newegg, you would need to analyze the way the marketplace operates and generates revenue, the reasons for its success, and finally the steps to build a marketplace like Newegg. 

Business operations of Newegg 

Newegg has multiple eCommerce marketplace platforms. An online marketplace is an eCommerce business in which the owner entity establishes the infrastructure, and manages backend operations like payment processing, shipping, and others. The business builds its customer base and eventually, its brand identity. It further invites third-party sellers to sell to its customers. 

Newegg has further bifurcated its operations into two distinct marketplaces ― a B2C marketplace where the buyers are end consumers, and a B2B marketplace where the buyers are businesses. Both these marketplaces have been built to offer purpose-built functionalities to their target users. 

Revenue Channels of Newegg 

A marketplace business typically opens up avenues for multiple revenue-generation channels. Newegg earns primarily via commissions on transactions via its platform. Additionally, it is also a seller itself on the marketplace and earns revenue from the sale of products. Finally, it earns through the backend services it provides to third-party sellers. 

While Newegg has these as its primary revenue generation channels, there are other revenue generation opportunities in a multi-vendor eCommerce platform:  

A business can introduce subscription packages for users. Moreover, it can also monetize advertisement banners on the platform, and earn via these. 

Steps to build an electronics marketplace like Newegg. 

The following steps can be adopted to build a marketplace like Newegg. 

Initial market survey 

Conduct a market survey to analyze user needs in the targeted location. Your business has the best chances for success if it is able to solve key consumer needs with the help of your platform. 

Understand the user needs, and based on these formulate assumptions that will give you direction moving forward. 

Develop the eCommerce platform 

There are two popular approaches that you can take to build a marketplace like Newegg. 

The first will be to develop the marketplace from scratch by hiring a development team or outsourcing the needs to an off-premises eCommerce development company. While this legacy approach has its advantages and is being used. It is getting outdated because of the commitment needed in terms of resources and time. 

The second, more dynamic approach is to use turnkey solutions to develop your marketplace platform. There are many eCommerce solutions in the market that can help you in launching an eCommerce platform by investing a fraction of your resources. While these vary among themselves, the final cost will depend upon the solution opted for. Moreover, the time to market for the business is significantly lesser. 

Launch the marketplace 

With the development of the marketplace complete, the next step would be to launch the business. A point to consider at this stage is that your business has been developed based on assumptions made in step 1. While these assumptions are based on the basis of a market survey, still these can’t be considered validated unless the target audience gives a positive response. 

At this stage then, it is better to follow the MVP approach. By this, you validate your market assumptions iteratively, rather than going for a big-bang launch straightaway. This is all the more the reason for using leading turnkey ecommerce solutions. These give essential marketplace features from the word go, while anything specific pertaining to your business can be added at a later stage. 

Wrapping Up 

The electronics niche in the eCommerce industry holds immense potential. This particular niche has been doing well, and as per multiple market projections and reports, it will continue to do well in the near future as well. 

Using a turnkey solution can give you distinct advantages ― of a market-ready platform, lesser resources invested, and a faster go-to-market time. Yo!Kart is a leading multivendor marketplace solution that has essential marketplace features. It has exclusive software for both B2C and B2B business models respectively. Moreover, an in-house team for after-sales and customization support allows one to be Agile and secure the future goals of the business. 


While the blog lists brief information regarding how to build an electronics marketplace like Newegg, one can analyze in-depth information regarding the topic before setting out the business plan.