Shpock Business Model | How Does Shpock Make Money?

Shpock Wallet users can quickly move their funds from Shpock Wallet to their bank accounts after configuring the Wallet.

This is the app for you if you are looking to sell your used appliances quickly. This service is ideal for sellers as it is entirely free to list items.

Shpock business model is based on boot sale & classified advertisements make purchasing and selling used items easier and more secure than ever. 

PayPal will transfer your earnings to you. The Shpock app, which stands for SHop in your POCKet, is an iOS and Android app that competes with eBay and Gumtree (take a look at how the prices compare).

Shpock Business Model

Once the seller receives payment via the Shpock Wallet, they have 150 days to set up the account before the money is refunded to the buyer. 

Shpock describes itself as one of the most popular boot sales, flea market, and classifieds applications available. 

The software makes it easier and more secure to find and purchase used items through boot sales & classified ads. 

We will make every effort to make sure your item arrives as described, or we will refund you in full! The app does not charge listing or selling costs, and it simplifies listing items and connecting with prospective buyers.

Please submit the request with the e-mail address that you used to create your CoinBR/Stratum account so that it can be identified as yours.

Shpock is a noteworthy digital marketplace because it sells not only things and articles but also services. 

You can buy and sell items in your neighborhood with Shpock. While it is often associated with business-to-consumer (B2C) transactions, eCommerce is incredibly diverse.

What is Shpock?

Shpock is an online marketplace that allows users to buy and sell anything. Shpock’s website and mobile applications provide access to the platform.

Shpock earns money through subscription fees, referral payments, and by providing advertising space on its website and app. 

Shpock was founded in 2012 and has grown to become one of the major classifieds platforms in Europe. Over ten million people access the platform each month.

How Does Shpock Work?

Users can buy and sell a wide range of products on Shpock, an online marketplace. Customers  can browse through a variety of categories, including:

  • Garden & Home
  • Automobiles & Motors
  • The electronic sector
  • The fashion industry
  • Services

… and several others. You can access Shpock via the company’s website or its mobile app (available on both Android and iOS devices).

Shpock Business Model

Users must register on the website or app to use the service. A user can then list the items he or she wishes to sell by uploading a photo, providing a description, and deciding on a price range.

A customer can then directly make an offer on the website if they are interested in buying the product. You can also create a wish list if you wish.

A buyer can decide whether to complete a transaction on the platform or off (e.g., by paying in cash when meeting in person).

Shpock offers even buyer protection in some cases to protect its customers’ money. Furthermore, customers can review sellers on the site, improving their level of confidence.

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How Does Shpock Make Money?

Shpock makes money by selling advertising space on its platform, subscription charges as well as referring customers.

Here, we’ll examine each of them in more detail.

Subscription Fees

There are quite a few people who sell things professionally on Shpock besides the average person.

Shpock offers a membership service for these professional sellers. The Shpock+ Shops subscription includes the following features:

  • Owners can list products, sort them according to various criteria, or manage sales status with the Shop Manager feature.
  • Providing advanced reporting
  • Customer support dedicated to your account

…and several others. The current price range for the monthly subscription plans offered by Shpock is between €19 and €99 per month (prices paid on an annual basis).

You can reach a wider audience by increasing your price. A cheaper plan, for example, provides regional exposure only, whereas a more expensive program provides national exposure.

Dealers can offer customers Shpock+ Motors a comparable service. The pricing information for Motors products is accessible only on request.

The platform allows Shpock vendors to market their products to differentiate their products.

Advertisers will have the option to place banners and video ads at various locations, including the page’s top and sidebar. You can view advertisements on both mobile and desktop platforms.

Whenever a buyer views a piece of advertising (also known as an impression), Shpock is compensated. Advertisers set up a monthly budget from which money is taken.

An advertisement’s cost per impression varies with the type of buyer it targets. You can target buyers based on their location, age, gender, interests, and search phrases, among other things.

Referral Fees

A complete overhaul of Shpock began in November 2019, which saw the platform move from a local listing platform to a transactional one.

A digital wallet, an in-app payment system, and buyer protection were available as part of the program.

Shpock Business Model

Shpock works with Parcel2Go and Royal Mail to provide nationwide delivery within the United Kingdom. 

Shpock is rumored to receive a small percentage of each shipment order for referral fees from these shipping companies, although this has not been confirmed.

Who is the Owner of Shpock?

Russmedia Equity Partners owns 100% of Shpock, a subsidiary of Finderly GmbH. The hedge fund acquired Shpock for an undisclosed price in June 2021.

Shpock was previously acquired before the acquisition. Schibsted Classifieds Media acquired  91 percent of the company in 2015 for approximately $214 million.

Schibsted acquired the remaining 9%, which was held by the founders, in January 2019. The company then went public with its classifieds firm, Adevinta, in April of that year.

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Success Story of Shpock

Shpock was founded in 2012 by Katharina Klausberger and Armin Strbac in Vienna, Austria.

Entrepreneurship was introduced to both founders at an early age. Both of Klausberger’s and Strbac’s fathers were business owners.

Strbac started his own business as a teenager, providing video animation services to other businesses. His lack of experience caused the company to close soon afterward.

As they both graduated high school, their paths diverged, and they opted for a traditional job instead of launching their businesses.

Austria’s most prestigious business school, Wirtschaftsuniversität (WU) Vienna, is attended by nearly every young and career-driven Austrian adolescent. Both earned their degrees in the mid-2000s.

Klausberger’s academic career continued at Washington University with a doctorate in entrepreneurship. Strbac worked for Boston Consulting Group for nearly six years. 

He even began working on his dissertation. He ran into Klausberger, who was a former classmate at WU.

A desire to finally go out on their own led them to co-found a firm. As genuine business students, they participated in a local startup event and even created an 80-page business plan.

The website was eventually called Finderly and launched in 2010. Users could find the best electronic products with the help of a crowdsourced platform. Platform users could recommend the best solution based on a customer’s requirements.

Government subsidies, prize money from startup competitions, and the founder’s resources were used to fund the business. The business was created by Klausberger and Strbac over the next two years.

A smartphone app for Finderly was developed in 2012 to capitalize on the booming smartphone market. The participants of a workshop they scheduled to iron out the kinks in the app continually complained about the time it takes to list things online.

The German-speaking market was dominated by eBay’s classifieds business (called eBay Kleinanzeigen). 

Kleinanzeigen, which at the time didn’t have an app, required about 30 minutes of data entry for each purchase. A lack of customer reviews made the product and the seller suspect and the quality of the goods.

The team was also likely inspired by app-based services such as LetGo and OfferUp, gaining traction in the United States.

Shop in Your Pocket, better known as Shpock, was first introduced to the public in September 2012.

The app was initially only available in German. The app has already been downloaded over 100,000 times in less than three months.

Shpock had surpassed 1.2 million downloads by mid-2013. Shpock and his team raised their first round of funding for the new venture simultaneously (the company was still incorporated as Finderly GmbH, but the app had already been discontinued).

The fundraising round allowed the team to significantly improve the in-app experience, for example, by redesigning the platform or by enhancing buyer and seller communication. The app was improved over a dozen times between 2013 and 2015.

Shpock Business Model

Shpock also expanded into other markets, including the UK (among others), in  2014. Shpock’s downloads increased from 1.2 million in mid-2013 to over ten million in  August 2015.

After a sustained expansion period, the company finally became a household name – and an attractive acquisition target. A subsidiary of Schibsted Classifieds Media (which runs 25 classifieds websites) acquired 91 percent of Shpock in September 2015 for $214 million.

Schibsted was an early investor in Shpock during its 2013 investment round. Following its spectacular rise, they decided to increase their investment. Klausberger and Strbac each retained 4.5 percent of the remaining 9%.

The founders were both active in the firm’s daily operations until late March 2017. 

Baumann (who joined the company two years before as Head of Marketing) was appointed CEO that same month. Shpock had over 120 employees and over 30 million downloads by then.

A goal of further expansion was set. Italy, Sweden, and Norway are going to be added to the list in the future. Schibsted has committed an additional 100 million euros to the project.

Shpock slowly began to realize reality as the year came to a close. Schibsted’s parent company was preparing to take its classifieds business (called Adevinta) public, so profitability took precedence over overgrowth.

Shpock’s headcount was reduced from 180 to 100 by Schibsted in November 2018. Furthermore, Esteve Jane Ribera replaced CEO Baumann, who had taken responsibility for the company’s Spanish ads business.

Schibsted purchased Klausberger and Strbac’s remaining 9% in January 2019  for an undisclosed sum. Shpock experienced the most significant rebranding and restructuring in its history in November.

Local markets evolved into transactional marketplaces. A buyer protection program, in-app payments, a digital wallet, and purchase options were all available.

Adevinta bought eBay’s classifieds business for $9.2 billion in July 2020. eBay acquired a 44 percent stake in Adevinta as part of the transaction.

The parties also agreed to divest their remaining assets (such as Shpock, Motors.co.uk, and Gumtree) to conform with antitrust laws.

Shpock (along with several other assets) was sold next year, in June 2021, to Russmedia Equity Partners, an investment group focused on online marketplaces and SaaS companies. Costs have not been disclosed.

Shpock is also doubling down on existing market segments, according to Russmedia’s summary.

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