Newegg Commerce, Inc. (NASDAQ: NEGG) announced a strategic partnership with PayPal that will embed PayPal’s agentic commerce services into Newegg’s e‑commerce platform. The collaboration will allow Newegg’s product catalog to be surfaced in AI‑powered shopping environments such as Perplexity, enabling customers to discover and purchase items directly through AI agents while Newegg remains the merchant of record.
The partnership leverages PayPal’s agentic payment solution and catalog‑and‑order‑management offering, which syncs merchants’ inventory and fulfillment data with AI agents in real time. By integrating these services, Newegg can tap into the growing AI‑shopping market, where consumers increasingly rely on conversational agents for product discovery and checkout. The move also positions Newegg alongside competitors that are exploring similar AI‑shopping integrations, such as Google’s Shopping Actions and OpenAI’s new commerce APIs.
Newegg’s broader AI strategy includes AI‑guided PC‑building tools, AI‑powered Q&A features, and a conversational shopping assistant that recommends components based on user preferences. The PayPal partnership adds a new channel that complements these initiatives, potentially accelerating sales growth in high‑margin PC hardware and gaming peripherals. Management noted that “AI is redefining the customer shopping journey, and over the past two years we’ve leveraged AI to build entirely new experiences for our customers. PayPal is pioneering innovation in this area, and its agentic commerce services enable Newegg to participate in this new shopping experience.”
Financially, Newegg has been improving its operating profile. In the first half of 2025, net sales rose 12.6% year‑over‑year to $695.7 million, while the net loss narrowed to $4.2 million from $25.0 million in the same period a year earlier. For the full year 2024, net sales totaled $1.24 billion, down from $1.50 billion in 2023, but the net loss decreased to $43.3 million from $59.0 million. Adjusted EBITDA moved into positive territory in the first half of 2025, reaching $11.3 million versus a loss in the prior year, underscoring the company’s cost‑control progress and the potential upside of the new AI partnership.
The partnership is expected to enhance Newegg’s visibility in AI‑shopping ecosystems, driving incremental traffic and conversion. By embedding its catalog into AI agents, Newegg can capture shoppers who are already engaged in AI‑driven search and recommendation workflows, potentially increasing conversion rates and expanding its customer base. The strategic shift also signals Newegg’s commitment to staying ahead of competitors in the PC‑hardware e‑commerce market, where AI‑enabled shopping is becoming a differentiator.
The announcement does not involve a financial transaction or acquisition, but it represents a significant strategic shift that could enhance Newegg’s visibility and sales channels in the rapidly growing AI‑shopping space, reinforcing its competitive position in the PC‑hardware e‑commerce market.
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