Shopatron to begin test of order online/pick-up in store

Shopatron Inc., which funnels orders from manufacturers’ web sites to local dealers, plans to begin a test this month of in-store pickup at those stores, Ed Stevens, founder and CEO, tells Internet Retailer.

“The trend to consumers ordering online and picking up in stores is a huge, unexpected shift in what consumers are doing,” Stevens says, noting the success of store pickup programs at such major chains as Wal-Mart and Circuit City. “We are moving quickly to service this market for branded manufacturers who need this capability.”

In order to expand its services, Shopatron recently obtained $6 million in additional funding. Leading the funding round was San Francisco-based private equity firm Kern Whelan Capital with participation from existing investors, including Rivenrock Capital, a private equity firm based in Los Angeles. Stevens says the company plans to expand its headcount, now 35, by at least 50% by the end of the year.

Shopatron has conducted some early tests of the in-store pickup program this year and plans to launch a larger test this month. Stevens says a number of the company’s 400 manufacturer clients will participate, but he would not be more specific.

Until now, Shopatron has worked with manufacturers to help them accept orders online without competing with retailers that carry their goods. The manufacturers send orders to Shopatron, which publishes the orders to more than 7,000 retailers that carry those brands, enabling Shopatron to identify a retailer that can fulfill the order. Shopatron receives a commission of between 2% and 5% on each order, Stevens says.

For the past few years, Stevens says, Shopatron has been operating an order exchange that enables retailers to fulfill orders placed on manufacturers’ sites. “In-store pickup is nothing more than a super-accelerated order exchange,” he says.

Among Shopatron’s manufacturer clients are Brooks Running, Thule, Diadora, Nordica and Johnson Outdoors.