October 25, 2014

Scoutmob’s Shoppe ‘Experiment’ Is a Home Run, Accounts for 30-40% of Revenue

Scoutmob logo

Last week, “curious purveyor of local” Scoutmob partnered with Google’s Niantic Labs to integrate its local deals into Android mobile app FieldTrip, which serves users information based on where they currently are. But that isn’t the only good news these days for the Atlanta-based company, according to PandoDaily.

Scoutmob co-founder and head of product Michael Tavani is also sharing that his company’s e-commerce product, Shoppe, has been doing well – so well, in fact, that it now accounts for 30-40 percent of the company’s gross revenues. While Scoutmob isn’t profitable yet, the company is considering a round of funding just for Shoppe, which isn’t even fully mobile yet. Tavani says Shoppe was an experiment that involved just a couple people from the company. Despite the unexpected success, he says a pivot isn’t in the works.

In a profile of Scoutmob last month, Tavani shared with DM Confidential that Shoppe offers 1,000 handmade products for sale, and that it took just six months for it to account for a significant portion of the company’s revenue.

“Needless to say, we’re going to continue pushing on that front as we become an e-commerce company on top of a local-mobile one,” Tavani said in the interview. “And surfacing the most creative local artists in a city fits right into our mission of being purveyors of local.”

There’s clearly a trend of deals companies placing more of their resources and focus on selling goods. Groupon has made Groupon Goods a priority, while LivingSocial announced LivingSocial Shop last summer. Even smaller players like Sharing Spree are noticing the appeal of selling goods and planning a move into that arena. However, selling goods has thinner margins than selling deals, which could be a bit worrisome. It might also make these companies less appealing acquisition targets.

Below is a video overview of Scoutmob’s Shoppe:

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