Newegg Takes on Amazon Prime with Premier Offering

Feb 07, 2014 7:34 PM  By

Newegg has launched a subscription-based program called Newegg Premier, which offers its 25 million registered customers  benefits similar to Amazon.com’s Amazon Prime, according to a post on Newegg’s blog.

For an annual $49.99 fee, Newegg Premier will receive free expedited shipping, early-bird notifications for sales and events, no restocking fees, free returns, a dedicated customer service line and exclusive members-only deals. NewEgg is also offering a free 30-day trial to customers who choose to enroll in the program.

Newegg’s announcement comes on the heels of Amazon’s announcement that it would raise its Amazon Prime annual subscription of $79 to potentially $99 or even $119.

Amazon currently offers Prime members free two-day shipping on orders on $35 and up, unlimited instant streaming of movies and television shows with Prime Instant Video, and free Kindle e-book rentals.

Amazon CFO Tom Szkutak said during its fourth-quarter earnings call that the company was looking to raise the annual fee for Amazon Prime because of rising shipping costs.

In a Dec. 26 press release, Amazon said that Prime was so popular this holiday, it limited new Prime membership signups to ensure service to current members was not impacted by the surge in new membership.

However, more than one million customers around the world became new Prime members in the third week of December.

Back in June, Newegg announced a new fulfillment service, Shipped by Neweggwhich allows its marketplace sellers the ability to use Newegg’s logistics operations, including warehouse storage, packing and shipping.