ShopRunner doubles customer base in 2014

A netizen in Beijing surfs the website of ShopRunner Inc. The company more than doubled its users over the past year. [Photo/China Daily]

ShopRunner Inc, the e-commerce startup backed by Alibaba Group Holding Ltd that styles itself in some ways as the anti-Amazon, more than doubled its users over the past year and hopes to do so again in 2015, its chief executive said in an interview.

The five-year old online retailer's gains may allow it to gain more customers who prize convenience and experience over cost savings, while taking advantage of its Alibaba relationship to help American retailers sell to China's still-growing middle class.

ShopRunner borrows some of Amazon.com Inc's innovations: it charges $79 for two-day shipping to Amazon's $99. And it has an express checkout akin to its larger rival's one-click-buying feature.

But CEO Scott Thompson says ShopRunner aims to be more like an online shopping mall that showcases brands than an Amazon or eBay marketplace where the focus is on lowest price.

It also gives partners－ranging from Cole Haan and Under Armour to Neiman Marcus－ownership of customer data and relationships.

"These businesses spend a lot of money to do the right thing with their brands," Thompson told Reuters in an interview. "I want the segment of customer who says I want to pay a fair price, but I want the experience to be predictable."

ShopRunner is one of a number of startups nibbling away at Amazon's dominance of the online arena.

It remains to be seen whether any will make waves. The soon-to-be-launched Jet, for instance, is raising funds from investors at a rapid clip and hopes to carve out a niche in lowest-price shopping.

ShopRunner membership is now at 2.4 million, though it is unclear how many of those users signed on through American Express Co, an investor in ShopRunner, which also offers its cardholders free membership.