Shpock is a mobile and browser-based online marketplace and classifieds platform, which name recalls “shop in your pocket.” Founded in 2012 by Austrian entrepreneurs Armin Strbac and Katharina Klausberger. In September 2015, classified website conglomerate Schibsted Classifieds Media acquired a 91% stake in Shpock worth $214 million. Further growth saw Shpock expand into Italy, Sweden, Norway, and the United Kingdom to name a few countries.
Aspect
Description
Advertising
One of Shpock’s primary sources of revenue is advertising. The platform displays advertisements to users as they browse listings, search for items, or interact with the app. Brands and businesses pay Shpock for ad placements to reach its user base. These ads can include banners, sponsored listings, and promoted posts. Revenue is generated from ad impressions and user interactions with these advertisements.
Premium Features
Shpock offers a range of premium features and paid subscriptions to enhance the user experience. For example, users can pay for features like “Top Listing” to boost the visibility of their listings, or “Highlight” to make their listings stand out in search results. Premium subscribers may also enjoy additional benefits such as ad-free browsing and access to advanced statistics. Fees generated from these premium features contribute to Shpock’s revenue.
Transaction Fees
Shpock charges transaction fees when users opt to use the integrated payment and shipping services for their transactions. These fees are typically a percentage of the total transaction value. The platform provides a secure way for buyers and sellers to complete transactions and handles the payment processing, which results in a fee for Shpock.
Premium Membership
Shpock offers a premium membership known as “Shpock+,” which provides users with additional benefits such as early access to new features, discounts on premium features, and enhanced customer support. Users subscribe to Shpock+ for a monthly or yearly fee, generating recurring revenue for the platform.
Promoted Listings
Sellers on Shpock have the option to promote their listings by paying for promoted listings. These promoted listings are displayed more prominently to potential buyers, increasing the visibility of the items being sold. Sellers pay a fee to have their listings featured in this way. Promoted listings provide an additional revenue stream for Shpock.
Challenges and Competition
Shpock operates in a competitive market, facing competition from other online marketplace platforms. Staying relevant, maintaining a user-friendly interface, and ensuring a safe and secure environment for transactions are ongoing challenges. Balancing the user experience with the monetization efforts is crucial.
Future Growth Strategies
Shpock’s future growth strategies may involve: – Market Expansion: Expanding its presence to new countries and regions. – Enhanced Mobile Experience: Continuously improving the mobile app and its features. – User Engagement: Fostering a strong user community and encouraging active participation. – Data Monetization: Leveraging user data for targeted advertising and insights. – Seller Tools: Providing sellers with tools to streamline their listing and selling processes.
Shpock is a mobile and browser-based online marketplace and classifieds platform. The name of the platform is a portmanteau of the phrase “shop in your pocket”.
Shpock was founded in 2012 by Austrian entrepreneurs Armin Strbac and Katharina Klausberger.
After graduating from a prestigious Austrian business school, the two founders went their separate ways for a few years. Strbac continued studying to earn his doctorate in entrepreneurship, while Klausberger spent almost six years working for a consultancy firm.
Fuelled by a desire to create something of their own, the pair reconnected in 2010 and participated in a start-up event.
There, they wrote a business plan for a website called finderly – a site helping consumers find the best electronic products using a community-based recommendations tool.
Two years later, they held a workshop designed to flesh out a new app that would support the website.
During the workshop, they heard consumer complaints about the cumbersome nature of listing products for sale online.
This was particularly true for eBay Kleinanzeigen – a classified app dominating the German-speaking market forcing users to spend around thirty minutes uploading the required information.
Shpock was launched to the same market in 2012 and had amassed over 100,000 downloads in just three months. Nine months later, this figure had grown to 1.2 million downloads. Funding was then secured to completely redesign the app and enhance the user experience.
Further growth saw Shpock expand into Italy, Sweden, Norway, and the United Kingdom to name a few countries.
Value Proposition
Local Marketplace: Shpock provides users with a local marketplace platform where they can buy and sell a wide range of new and second-hand items within their local community. By focusing on local transactions, Shpock offers convenience and accessibility, allowing users to browse, buy, and sell items without the hassle of shipping or long-distance transactions.
Variety of Items: Shpock offers a diverse selection of items across various categories, including fashion, electronics, home goods, furniture, and more. Users can discover unique and affordable items, both new and pre-owned, catering to their individual needs, preferences, and budgets.
User-Friendly Interface: Shpock features a user-friendly interface and intuitive design, making it easy for users to browse listings, communicate with sellers, and complete transactions seamlessly. With features such as in-app messaging, search filters, and location-based search, Shpock enhances the user experience and facilitates smooth interactions between buyers and sellers.
Safety and Security: Shpock prioritizes safety and security by implementing measures to protect users from fraud, scams, and counterfeit products. The platform offers secure payment options, user verification processes, and buyer protection policies to instill trust and confidence among users, ensuring a safe and reliable marketplace environment.
Shpock revenue generation
Shpock has a revenue generation model typical of many online marketplaces.
Following is a look at some of the core components.
Advertising
Shpock offers advertising to sellers which it claims allows them to take advantage of “a young, curious and mobile-first user base, who love exploring new things – everyday. People who browse on Shpock are truly in a shopping mood and are particularly valuable to advertisers.”
Sellers have a lot of flexibility with Shpock advertising. They can choose from a variety of ad placement positions and types. They can also target buyers based on location, interest, gender, age, and search terms.
Shpock earns money through advertising on a per-impression basis. When a buyer sees an advert, the company takes money from the monthly advertising budget of the advertiser.
Premium membership
Premium members get access to several perks, including:
Shpock Super Boost – allowing sellers to choose two items per month to appear at the top of product listings.
Unlimited Photo Credits – allowing sellers to list products with ten accompanying photos instead of five.
Ad-free – lastly, an ad-free experience on both mobile and web.
After a one-week free trial, membership prices depend on geographic region.
Shpock+ Shops
Shpock+ Shops is a service helping businesses sell their products to users on a commercial basis – either directly or through a shop.
Features include customizable storefronts, unlimited product listings, branding, customizable price points, and related product suggestions.
Prices range from €19 to €99 based on the level of functionality desired for a yearly-based subscription. A similar service, Shpock+ Motors, is available for the automotive industry.
Prices are available on request.
Revenue Model
Listing Fees: Shpock generates revenue by charging sellers a fee to list their items for sale on the platform. Sellers may pay a nominal fee per listing or a commission-based fee for higher-value items or premium placement in search results. Listing fees provide Shpock with a steady stream of income while incentivizing sellers to list high-quality items on the platform.
Promoted Listings: Shpock offers sellers the option to promote their listings for increased visibility and exposure to potential buyers. Sellers can pay for promoted listings, featured placements, or sponsored ads within the Shpock app, allowing them to reach a larger audience and attract more buyers to their listings. Promoted listings generate additional revenue for Shpock while helping sellers increase their sales and visibility.
Transaction Fees: Shpock may charge sellers a transaction fee or commission on completed sales made through the platform. The transaction fee is typically calculated as a percentage of the final sale price or a flat fee per transaction. By collecting transaction fees, Shpock monetizes successful sales transactions and incentivizes sellers to use the platform for their selling needs.
Premium Features: Shpock offers premium features and subscription packages to sellers who want to access advanced selling tools, analytics, and benefits. Premium features may include enhanced visibility for listings, access to seller insights and analytics, priority customer support, and other premium perks. Sellers pay a subscription fee or one-time payment to unlock these premium features, providing Shpock with additional revenue streams and offering sellers valuable tools to optimize their selling experience.
Marketing Strategy
Social Media Marketing: Shpock utilizes social media platforms such as Facebook, Instagram, Twitter, and YouTube to engage with its target audience, promote its platform, and showcase popular listings. Through engaging content, sponsored ads, influencer partnerships, and user-generated content campaigns, Shpock leverages social media to drive brand awareness, user acquisition, and engagement.
Search Engine Optimization (SEO): Shpock invests in search engine optimization strategies to improve its visibility and rankings on popular search engines such as Google. By optimizing its website and content for relevant keywords, Shpock aims to attract organic traffic, increase website visits, and acquire new users who are actively searching for online marketplaces and local buying/selling platforms.
Partnerships and Collaborations: Shpock collaborates with strategic partners, brands, retailers, and local businesses to expand its reach, attract new users, and offer exclusive promotions or discounts. Partnerships may include co-branded marketing campaigns, cross-promotions, affiliate marketing initiatives, and integration with third-party platforms or services to enhance the user experience and drive user engagement.
Referral Programs: Shpock incentivizes its existing users to refer friends, family members, and acquaintances to the platform through referral programs. Users may receive rewards, credits, or discounts for successful referrals, encouraging them to spread the word about Shpock and invite others to join the community. Referral programs serve as a cost-effective way to acquire new users and grow Shpock’s user base through word-of-mouth marketing.
Distribution Channels
Mobile App Stores: Shpock distributes its mobile application through major app stores such as the Apple App Store for iOS devices and the Google Play Store for Android devices. By making its app readily available for download and installation on smartphones and tablets, Shpock reaches a wide audience of mobile users and facilitates access to its marketplace platform.
Online Platforms: Shpock operates a web-based platform accessible through internet browsers on desktop and laptop computers. The online platform provides users with an alternative way to access Shpock’s marketplace, browse listings, and engage in buying and selling activities without the need for a mobile app. The online platform complements the mobile app and offers users flexibility in accessing Shpock’s services across different devices and platforms.
Social Media Channels: Shpock leverages social media channels such as Facebook, Instagram, and Twitter as distribution channels to promote its platform, share user-generated content, and engage with its audience. Through social media posts, ads, stories, and live streams, Shpock drives traffic to its platform, increases brand visibility, and encourages user participation and interaction within the Shpock community.
Partnership Integrations: Shpock may integrate its platform with third-party websites, apps, and services through API integrations, partnerships, or collaborations. By integrating with complementary platforms or services, such as classifieds websites, local business directories, or community forums, Shpock expands its distribution reach, taps into new user bases, and enhances its value proposition by offering users additional channels to discover and access its marketplace.
Key takeaways:
Shpock is an online marketplace and classifieds platform created by entrepreneurs Armin Strbac and Katharina Klausberger. Both saw a need to improve the inefficient process of listing products for sale online.
Shpock makes money through advertising by charging sellers on a per-impression basis. It also offers sellers a premium membership to enhance their listings.
Shpock also offers solutions to commercial sellers who need to sell unlimited products through a storefront. The company charges an annual subscription fee based on the level of functionality desired.
Key Highlights
Origin and Founding: Shpock is a mobile and browser-based online marketplace and classifieds platform founded in 2012 by Austrian entrepreneurs Armin Strbac and Katharina Klausberger. The name “Shpock” derives from “shop in your pocket.”
Inception: The founders initially started with a business plan for a website named “finderly” that aimed to help consumers find the best electronic products through community-based recommendations. However, they shifted their focus after recognizing the cumbersome process of listing products on existing platforms.
Early Success: Launched in 2012, Shpock quickly gained traction in the German-speaking market, amassing over 100,000 downloads within three months and reaching 1.2 million downloads within nine months. The positive response led to securing funding for app redesign and user experience enhancement.
Acquisition and Expansion: In September 2015, Schibsted Classifieds Media acquired a 91% stake in Shpock for $214 million. The platform expanded its presence to multiple countries, including Italy, Sweden, Norway, and the United Kingdom.
Revenue Generation Model: Shpock follows a revenue generation model typical of online marketplaces, utilizing various components for income.
Advertising: Shpock offers advertising opportunities to sellers, targeting a mobile-first user base that is in a shopping mood. Sellers can choose from different ad types and placements, and Shpock earns revenue on a per-impression basis.
Premium Membership: Premium members enjoy benefits like top placement in product listings, extra photo credits, and an ad-free experience for a fee. Membership prices vary by geographic region.
Shpock+ Shops: Shpock offers a service for businesses to sell products through customized storefronts. Features include unlimited listings, branding, price customization, and related product suggestions. Subscription prices range from €19 to €99 based on functionality.
Advertising Focus: Shpock’s advertising model capitalizes on its engaged user base, allowing sellers to target potential buyers based on various criteria. Revenue is generated based on ad impressions.
Premium Membership: The premium membership offering enhances sellers’ listings and provides an ad-free experience, generating additional revenue for Shpock.
Commercial Solutions: Shpock+ Shops caters to businesses with customizable storefronts and unlimited product listings, offering various subscription tiers based on functionality.
User-Centric Approach: Shpock’s focus on user experience and seller flexibility contributes to its success in the competitive online marketplace landscape.
Diversified Revenue Streams: By incorporating advertising, premium memberships, and commercial solutions, Shpock diversifies its income sources and appeals to a wider range of users and businesses.
Entrepreneurial Success: Shpock’s evolution from recognizing a market need to becoming an acquired platform with international presence showcases the entrepreneurial journey of its founders.
A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model success.
A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.
A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.
A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.
The term “crowdsourcing” was first coined by Wired Magazine editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Though the practice has existed in some form or another for centuries, it rose to prominence when eCommerce, social media, and smartphone culture began to emerge. Crowdsourcing is the act of obtaining knowledge, goods, services, or opinions from a group of people. These people submit information via social media, smartphone apps, or dedicated crowdsourcing platforms.
While the term has been coined by Andrew Lampitt, open-core is an evolution of open-source. Where a core part of the software/platform is offered for free, while on top of it are built premium features or add-ons, which get monetized by the corporation who developed the software/platform. An example of the GitLab open core model, where the hosted service is free and open, while the software is closed.
Open source is licensed and usually developed and maintained by a community of independent developers. While the freemium is developed in-house. Thus the freemium give the company that developed it, full control over its distribution. In an open-source model, the for-profit company has to distribute its premium version per its open-source licensing model.
The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a business model. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.
A freeterprise is a combination of free and enterprise where free professional accounts are driven into the funnel through the free product. As the opportunity is identified the company assigns the free account to a salesperson within the organization (inside sales or fields sales) to convert that into a B2B/enterprise account.
In a franchained business model (a short-term chain, long-term franchise) model, the company deliberately launched its operations by keeping tight ownership on the main assets, while those are established, thus choosing a chain model. Once operations are running and established, the company divests its ownership and opts instead for a franchising model.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
