Madison Reed has raised $32.1 million since launching 15 months ago.
More than 60 retailers now participate in the free shipping membership program.
ShopRunner, which sells a membership program for consumers to receive free shipping and other exclusive deals from a network of online retailers, today announced the addition of three new participating merchants: Brooks Brothers Group Inc., No. 156 in the Internet Retailer Top 500 Guide; MacMall and Claire’s Stores Inc. This brings the company’s total network of retailers to more than 60, it says, including other top retailers such as Toys ‘R’ Us Inc., No. 29 in the Top 500; RadioShack Corp., No. 275; and PetSmart Inc., No. 315.
"In advance of the holiday season, we are excited to be able to offer these new retailers as a part of our growing network," says Scott Thompson, CEO of ShopRunner. "ShopRunner remains committed to providing value not only to our retail partners, but also to our members. Increasing merchandise assortment in popular online categories is a vital part of that and we look forward to continuing this momentum."
For $79 per year, ShopRunner members receive free two-day shipping for select products at participating e-retail stores, signing in at checkout or using a two-click express checkout to initiate the service. The two-click checkout also gives consumers the option to pick up products at a nearby retail store rather than have them shipped, ShopRunner says.ShopRunner competes with Amazon.com Inc.’s Prime membership, which also includes free two-day shipping for $79 per year.
Among participating retailers, 75% of ShopRunner orders come from new customers, the company says. “Momentum in the business is very strong and merchandise sales have accelerated substantially year over year,” says Fiona Dias, ShopRunner’s chief strategy officer.
ShopRunner launched in 2010 as a subsidiary of GSI Commerce. When eBay Inc. acquired GSI in 2011, it sold 70% of ShopRunner to a holding company led by GSI’s founder and former CEO, Michael Rubin, because the business did not fit into eBay’s long-term growth strategy, eBay says.