Newegg, a dark horse in the US live streaming e-commerce industry, has made millions of dollars in revenue in the first half of the year

According to DigitalCommerce360, in less than two years, Newegg, an American electronic technology product e-commerce platform, has carved out a niche in the live streaming market, achieving significant growth in revenue and user numbers. From zero live streaming content to 150 hours of live streaming per week, Newegg's growth process has many things worth learning from.

In October 2021, Newegg launched its live streaming business for the first time, and later established Newegg Media to be responsible for the live streaming business. In early January this year, Newegg Media was spun off from its parent company Newegg as a wholly-owned subsidiary.

According to Drew Roder, head of Newegg Media, at first, Newegg's live broadcast equipment was very simple, mainly using smartphones for filming, and only three anchors joined. Today, Newegg's live broadcast team has 25 members, 30 professional anchors and five live broadcast venues equipped with professional lighting and recording equipment. It is reported that the sixth live broadcast venue is under construction, with a total area of ​​10,000 square feet, located in Los Angeles.

In addition to its shopping website, Newegg also reportedly conducts live streaming on its six social media accounts, each with a specific audience, product focus and differentiation strategy. It is reported that the language style used by Newegg's anchors on each platform is also different during live streaming, mainly based on the characteristics of the platform's audience.

What did Newegg gain from betting on the live streaming e-commerce model?

The reason why Newegg continues to increase its investment in live e-commerce is that this model has visible effects. Since the launch of live streaming, as of mid-May 2023, 26 million consumers have watched live broadcasts on Newegg.com, and its average monthly audience on TikTok has reached 260,000.

The most direct thing is that live e-commerce has indeed brought real money growth to Newegg. In the first half of 2023 alone, the live broadcast business brought Newegg millions of dollars in revenue, and the traffic of product detail pages displayed by live broadcasts also increased, but Newegg did not share specific traffic or sales data.

In addition to the sales revenue generated by live streaming, Newegg has also opened up many new sources of income by leveraging the surge in traffic in its live streaming rooms.

For example, brand sponsorship. The brand pays Newegg a sponsorship fee, and Newegg will specifically introduce the brand's products during the entire live broadcast or a certain period of time during the live broadcast. In addition, the brand's logo or poster will be displayed in the background of the live broadcast room. Roder said that Newegg receives brand sponsorship once a week or sometimes every day.

Another source of revenue is to provide white-label services for its live streaming services, that is, allowing other retailers and brands to use its live streaming studios and equipment, or helping other brands set up live streaming rooms and charging a certain fee, which helps to enhance Newegg's professional reputation in this field.

Overall, Newegg is very satisfied with the results of its bet on live streaming. Among the local retailers that have recently bet on live streaming, Newegg is the fastest growing one. However, this process has not been smooth sailing. As Roder said, since there is no previous experience to draw on, the whole process is carried out through trial and error.

TikTok has the highest engagement rate, which indirectly proves the effectiveness of live streaming in bringing goods

According to reports, TikTok is the place where Newegg's live broadcasts receive the most views and user engagement among all its social media channels, followed by YouTube. From January to mid-May this year, Newegg's live broadcasts received 4.5 million views, 6 million likes and 300,000 comments on TikTok.

In addition to the fact that TikTok has more traffic, Newegg anchors will deliberately guide consumers to TikTok and YouTube to watch programs when broadcasting on other platforms. The reason is that shoppers can be added to the TikTok live broadcast room, and consumers can directly click on the product link and jump to the Newegg website to purchase, shortening the purchase path.

During the live broadcast, if the audience asks the anchor on Facebook, Newegg will also add the question to the queue of TikTok so that more viewers can comment. This also improves the engagement of its TikTok live broadcast, which further increases the exposure of Newegg live broadcast according to TikTok's algorithm recommendation.

The success of Newegg's live streaming has, to a certain extent, verified the feasibility of this model in the U.S. In fact, according to a survey of U.S. online shopping consumers by DigitalCommerce360 and BizrateInsights, live streaming programs are still gaining recognition among U.S. consumers, and this varies by category.

According to a survey conducted by DigitalCommerce360 in April 2023 on 1,038 home online shoppers, 5% said they would buy home furnishings through live streaming; a survey of 1,003 clothing online shoppers in June 2023 showed that 6% would buy clothing through live streaming; and according to a survey of 1,053 cosmetics online shoppers in March 2023, 15% said they would buy cosmetics through live streaming.

For the future, Newegg plans to continue to double down on its investment in live streaming content, open more accounts and expand into more categories.

Editor✎ Ashley/

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