Newegg disclosed to its customers that the company suffered a month-long data breach that may have exposed its users credit card details.
According to a message sent to customers, the data breach resulted from a sophisticated third-party hack that injected malware on its platform.
Newegg also said it did not know yet how many customers were affected or what data was compromised.
The company tried to reassure customers they have removed the malware and that it is taking steps to prevent a similar issue from happening again.
Bad Timing for Marketplace Sellers
In the message, Newegg said it would provide further details by Friday, but regardless of its findings, this is bad news for marketplace sellers.
With the holiday season around the corner, a data breach that went unnoticed for about a month will probably result in a serious loss of trust in Newegg from its customers.
Typically, such a loss in trust may take a few months to overcome and the timing couldn’t be worse.
Sellers that may have seen a drop in sales will probably continue experiencing this sales decline over the next few weeks.
Third-party marketplace sellers may want to brace for a downturn on Newegg sales and look at other marketplaces to shift their listings.
If you sell on Newegg, we would love to hear from your about your sales considering this situation. Drop us a note in the comments section below or head over to our Facebook Group for Small Business Sellers.