Newegg sees the right time for e-bikes

Newegg Commerce Inc., an online retailer known for its assortment of computer hardware and consumer electronics, is getting into the sale of e-bikes.
The move is part of the company’s growth strategy “to expand globally and into new related businesses,” according to filings with the Securities and Exchange Commission.

Newegg’s initial offering includes 26 models, with prices ranging from $539 to $1,899. The City of Industry-based retailer’s marketing pitch focuses on rising gas prices and how e-bikes could replace a car.

“With rising gas prices, e-bikes are environmentally friendly and are quickly becoming a great option for local commuting and commuting to work or school,” said Michael Plaksin, vice president of growth and development of the Newegg brand, in a press release. “We have developed a detailed buying guide as a starting point to help a customer make an informed decision to purchase their first e-bike. The guide provides information so customers can consider making an e-bike part of their active lifestyle.

While the timing of the e-bike launch neatly coincided with the recent gas pump sticker shock, Newegg’s product expansion has been underway for at least a year.
“We believe a key strategic advantage we have is our broad selection of technology products, and we have been focused on growing our product selection over time,” the company said in filings with the US. DRY. “For example, as of September 30, 2021, we offered over 38.6 million SKUs in over 1,800 categories, which we believe makes us one of the top online shopping destinations for consumers in technology. Newegg will continue to expand its direct sales and market business by expanding its product line and introducing new product categories, such as 3D printers, Internet of Things devices, automotive (auto parts and accessories), cell phones, wearable devices (fitness trackers and smartwatches), and sporting goods (e-bikes, treadmills, yoga accessories, etc.).”

Newegg sources electronics from more than 2,000 brands, including Asus, Hewlett Packard Enterprise Co., Lenovo, Dell, Acer, Microsoft Corp., Samsung, LG, Gigabyte and Westinghouse. It has approximately 40 million registered customers, 32.5% of whom purchased at least one item from Newegg in the past 12 months, with an average order value of $301.

The company also caters to commercial customers, such as healthcare providers, educational institutions and government agencies, as well as various small and medium-sized businesses. In addition to direct sales, the company has set up Newegg Marketplace, where third-party sellers offer their products to the company’s customers and pay commissions.

“We believe the Marketplace model provides us with a number of benefits,” the company said in SEC filings. “Compared to direct sales, using the Marketplace model helps our working capital and cash flow because there is no need to maintain inventory. Also, as the number of sellers and brands on our Newegg Marketplace continues to grow, the choices available to customers are also expected to grow, generating strong momentum for our continued growth.

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