how-does-shpock-make-money

How Does Shpock Make Money? The Shpock Business Model In A Nutshell

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.

Background

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.

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.

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.

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.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"