Newegg started as an online computer hardware retailer and quickly became a beacon for DIY PC enthusiasts. With its cult following, the company was integral in popularizing the PC-building movement. Two decades later, the DIY PC dream is still alive, with video content creators frequently showing off their latest builds using components they bought from Newegg.
Newegg is now one of the internet’s top online shopping destinations for gaming hardware, smart home products, consumer electronics, and more. The site’s tech community is also thriving, offering customers the opportunity to interact with other enthusiasts from around the globe.
In recent years, the number of technophiles shopping at Newegg has expanded in connection with the company’s product assortment. Younger consumers began coming to the site, but discovered they were not able to afford the upfront cost of the products they desired.
“Newegg carries thousands of consumer electronic products, many with higher-than-average price points. These higher-priced products created a challenge for younger customers who often lacked the financial means to shop our site,” says Nikki Tanlioco, Newegg’s VP of Finance. “Some of the most sought-after product categories were especially difficult for this customer segment. For example, within the Gaming category, a video game console is several hundreds of dollars and a gaming laptop is several thousand dollars.”
Time to troubleshoot. To make these high-demand products attainable for younger shoppers, Newegg knew it would have to rethink its payment options at checkout.
“We wanted to provide younger customers with more flexible payment options. Partnering with Zip helped us become more competitive by providing a simple and affordable BNPL plan that resonates with millennials and Gen Z,” says Tanlioco.
Since integrating with Zip on a custom platform in 2020, Newegg has been able to attract a new customer base — and keep them — by bolstering their quality products with a flexible checkout experience.
Zip clicked. Newegg was able to make tech products more attainable to more customers. Taking advantage of Zip’s app, Newegg experienced a significant increase of new customers.
Because they offered customers the option to level up their gaming gear now and pay later, Newegg also saw a lift in average order value for those who purchased using Zip.
Overall satisfaction has improved as well. Newegg techies using Zip are happy — 92% say they would continue using Zip at Newegg.
Based in part on the success with Zip, Newegg plans to continue to engage with customers by prioritizing product attainability and a seamless shopping experience.
“It is encouraging to work with Zip who employs people that are well informed and up to date with the ever-changing digital marketing trends. Looking forward to 2022 and beyond as we continue to experiment on new and innovative ways of reaching and engaging our target audience.”Chae Yi, Partner Marketing Manager
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