Newegg Launches New Program from Likewize to Offer Customers Added Protection for Valuable Tech Investments
Newegg Commerce, Inc. (NASDAQ: NEGG) introduces a new protection program from Likewize to offer customers peace of mind for eligible products sold on Newegg.com and the Newegg shopping app.
Introducing a new protection program by Likewize for products sold on Newegg.com represents a strategic move to enhance customer satisfaction and loyalty. Such services can increase the perceived value of the e-commerce platform, potentially leading to higher conversion rates and repeat purchases. In an industry where margins are often thin, these value-added services can differentiate a retailer from competitors and encourage customer retention.
From a market perspective, this initiative could be seen as a response to consumer demand for more comprehensive after-sales support, which has become a significant factor in the purchasing decision process. By offering this protection, Newegg may attract a customer demographic that prioritizes product security and long-term use over initial cost savings. However, the success of this program will largely depend on the pricing strategy, terms of service and the efficiency of the claim process. The long-term impact on Newegg's financials will be worth monitoring, as it could influence both revenue streams and customer service costs.
The introduction of a protection program is a forward-looking revenue diversification strategy. Such programs typically generate additional income streams from the sale of warranties and protection plans. This can lead to an increase in average order value and improve the company's financial health. However, the financial implications for Newegg will depend on the adoption rate of the program by customers and the balance between the program's income and the cost of servicing claims.
Investors should consider the potential for increased customer lifetime value against the costs associated with administering the program and potential liabilities from claims. A successful protection program can lead to enhanced earnings stability and predictability if managed effectively. It is essential to analyze future financial statements to gauge the program's impact on Newegg's revenue and profit margins.
The decision to offer a protection program aligns with the understanding of consumer behavior, especially in the technology sector where products may be prone to defects or rapid obsolescence. Customers are increasingly seeking ways to protect their investments and a well-crafted protection plan can be a deciding factor in the consumer's purchase journey. The psychological comfort that comes with warranty protection can be a powerful motivator, potentially leading to increased consumer confidence and higher sales.
The effectiveness of this strategy, however, will hinge on how well Newegg communicates the benefits of the protection plan to its customers. If the program is perceived as valuable and trustworthy, it could significantly enhance customer satisfaction and encourage positive word-of-mouth, which is invaluable in the digital commerce space. Monitoring customer reviews and feedback will be crucial in assessing the program's reception and effectiveness.
03/06/2024 - 08:10 AM
Customers can now get peace of mind for their purchases from a leading global protection provider
CITY OF INDUSTRY, Calif. --(BUSINESS WIRE)--
Newegg Commerce, Inc. (NASDAQ: NEGG ), a global e-commerce leader for technology products, today announced that a new protection program from Likewize is now available to offer customers additional peace of mind for eligible products sold by Newegg.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240306774966/en/
When a customer adds an eligible product to their online shopping cart on Newegg.com, a Likewize protection program offer pop-up appears as an optional paid add-on. (Photo: Newegg)
Developed specifically with Newegg customers in mind, the new program from Likewize is available for most products sold through Newegg.com and the Newegg shopping app. When a customer adds an eligible product to their online shopping cart, a protection program offer pop-up appears as an optional paid add-on to give customers more comfort that their products will properly function to expectations.
Learn more about the new Likewize Protection plans by visiting https://protect.likewize.com/newegg/ .
Products covered by the protection plan include laptops, desktop computers, tablets, PC components, mobile phones and TVs.
Most new products come with a standard manufacturer warranty covering performance issues. Customers will have the opportunity to purchase an extended protection plan that will cover their item in case any defects or failures arise. Certain products, like laptops, also offer accidental damage coverage through Likewize. A damaged or nonfunctioning product that is covered by the Likewize Protection Plan can be sent to Likewize for repair.
The Likewize protection program includes:
Protection against breakdowns
Power surge protection
100% parts and labor coverage
No deductibles or hidden fees
Hassle-free 24/7 online claims portal
Free two-day shipping
Customers can choose to buy a product protection plan for eligible products. Products not eligible for protection include most non-technology products, ink and toner, cables and digital products.
In addition, refurbished products sold by Newegg through its new Newegg Refreshed program offer customers the opportunity to buy multiple years of protection with a Likewize Protection Plan, which provides coverage for any manufacturer defects or if the product stops functioning.
“We’ve given our customers peace of mind and eliminated concerns so they can depend on products they purchase from Newegg because of this new protection program from Likewize,” said Ernesto Castro, Director of Product Management for Newegg. “Likewize’s capabilities within technology protection give our customers additional confidence in their purchases.”
In addition to the protection program, Likewize’s technology leadership is being maximized in other areas to help Newegg customers. All Advanced Battlestations (ABS) PCs, Newegg’s gaming desktop PC systems, include a one-year manufacturer’s warranty from Likewize.
Likewize is also a leading device uplift and trade-in company globally providing popular name brand good-as-new products to the Newegg Refreshed refurbishment program. iPhone, iPad and MacBook products are refurbished by Likewize for Newegg Refreshed.
Founded in 1997, Likewize is the fastest growing tech protection company in the world providing device protection for over 40 million global customers.
“We’re excited to partner with Newegg and we’re honored that a company relentlessly driven to provide the very best products and experiences has entrusted us to help them take good care of their customers,” said Mark Harris, Vice President of Business Development for Likewize.
About Likewize
Likewize offers the most comprehensive protection against any technology disruption, resolving 250 million problems each year across insurance, warranty, repairs, trade-ins, recycling, and premium tech support. Trusted by the world’s largest brands, telcos, and banks to look after approximately a billion of their customers, Likewize operates in over 30 countries. For more Information, please visit www.likewize.com .
About Newegg
Newegg Commerce, Inc. (NASDAQ: NEGG ), founded in 2001 and based in the City of Industry, Calif. , near Los Angeles , is a leading global online retailer for PC hardware, consumer electronics, gaming peripherals, home appliances, automotive and lifestyle technology. Newegg also serves businesses’ e-commerce needs with marketing, supply chain, and technical solutions in a single platform. For more information, please visit Newegg.com .
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240306774966/en/
Eric Wein
eric.j.wein@newegg.com
Source: Newegg Commerce, Inc.
What is the new protection program introduced by Newegg Commerce, Inc. (NEGG)?
Newegg Commerce, Inc. (NEGG) has introduced a new protection program from Likewize to offer customers peace of mind for eligible products sold on Newegg.com and the Newegg shopping app.
How can customers access the Likewize protection program?
Customers can access the Likewize protection program by adding an eligible product to their online shopping cart on Newegg.com, where a protection program offer pop-up appears as an optional paid add-on.
Which products are eligible for the Likewize protection program?
Most products sold through Newegg.com and the Newegg shopping app are eligible for the Likewize protection program.
What is the purpose of the Likewize protection program?
The Likewize protection program aims to give customers more comfort that their products will properly function to expectations by offering an optional paid add-on when adding eligible products to the online shopping cart.
