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Why ShopRunner's Business Model is so successful?

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ShopRunner’s Company Overview

Founded in 2010 and based in Chicago, Illinois, ShopRunner's primary mission is to provide an unparalleled online shopping experience to its customers. The company partners with over 100 top retailers and brands, offering a myriad of products across various categories - from clothing and beauty products to electronics and home goods. ShopRunner provides its members with unlimited free 2-day shipping, free return shipping, exclusive deals, and seamless checkout on all partnered websites. The company thrives on its commitment to customer satisfaction and convenience, making online shopping faster, easier, and more cost-effective. Business model: ShopRunner operates under a subscription-based business model. Customers pay an annual membership fee to access the exclusive benefits offered by the company. The membership includes benefits like free 2-day shipping and free returns, which are available at all of ShopRunner's partner stores. This model allows ShopRunner to generate a steady stream of income while providing value-added services to its members. The company also benefits from its partnerships with retailers who pay ShopRunner a fee for increased exposure and sales driven by the platform. Revenue Model: ShopRunner's primary source of revenue is the annual membership fee paid by its subscribers. This fee provides members with unlimited access to the service for a full year. In addition to this, ShopRunner also generates revenue through its partnerships with retailers. The company charges a commission to its partner retailers for every purchase made by a ShopRunner member on their website. This dual revenue stream allows the company to maintain its high-quality service while continuously expanding its network of partner retailers and growing its member base.

Country: Illinois

Foundations date: 2010

Type: Subsidiary

Sector: Consumer Services

Categories: eCommerce

ShopRunner’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: rewards me, design/aesthetics, provides access

Functional: saves time, simplifies, connects, reduces effort, avoids hassles, variety

ShopRunner’s Related Competitors

ShopRunner’s Business Operations


Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.


Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

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