Shipt is a platform that has allowed several people to earn some extra bucks. This is such a welcome innovation, especially given the near-global economic paralysis of several humans on earth; a consequence of the Covid-19 pandemic. Our unanimous curiosity however remains, “How does shipt make money?”
Sincerely, I’ve wondered severally and only thought to do some research to know. then I thought, “why not just do a post about your discoveries so other curious minds like yours will have some genuine answers.”
This post answers all that curiosity about how Shipt makes its money and some more. It will also show you how you can sign up with Shipt and make some extra cash alongside the multi-million dollar company.
Thus, all I ask is that you meticulously read through this expository piece, and don’t forget to share or tell us what you think in the comment section below.
Table of contents
- Simple Facts about Shipt?
- How can I become a Member (Client) on Shipt?
- How Much Does Membership on Shipt Cost?
- How Does Shipt Work?
- Which Stores Partner with Shipt?
- How Much do shoppers make on Shipt?
- Is Being a Shipt Shopper Worth It? Pros and Cons.
- What do I Need to Work as a Shipt Shopper?
- How Does Shipt make Money?
- You may also like…
Simple Facts about Shipt?
Shipt is a delivery company that has its headquarters in Alabama and is a subsidiary of Target; one of the largest retailers on the globe, especially by the volume of revenue it pools in.
Pointedly, Shipt is that grocery delivery service that was founded by Bill Smith in 2014 and acquired by Target Corporation in 2017. This certainly explains why it is a subsidiary of the largest retailers on the globe; Target.
As of 2018, the company was valued at $1 Billion (One Billion Dollars).
Shipt prolly has a mission to simplify everyone’s life. Or is it, grocery-life now? The business simply requires customers to submit their grocery lists and have ‘shoppers’ (Shipt agents) shop and deliver items on the list for them.
How can I become a Member (Client) on Shipt?
If you want to avoid the hassle of shopping for groceries for hours, it is highly recommended that you interact with Shipt and order your groceries online. If you’re a traditional shopper who’s afraid to use an online grocery delivery service, don’t be.
Shipt promises that a personal shopper can go out and shop for you from approved stores that operate in partnership with Shipt, so you can be secure in the quality of the goods and products that arrive at your door by the end of the day.
Shipt’s Network of Stores
Shipt has a national network of participating stores. All you have to do now is locate a participating store that is near to your place. After you’ve decided on a store, you’ll need to make a shopping list. Following the submission of your list, a personal customer will visit the participating store and purchase every single item on your list, and you will be notified of any unavailable items.
The personal buyer will then update your order and deliver your groceries right to your door. You get to choose the delivery time slot so that you can be present to ensure that all is in order with your order. There are several places that provide pickup service as well, for added convenience.
To take advantage of this great service, simply download the app from the Google Play Store. Purchase a subscription package; you can choose from a monthly or annual plan, depending on your needs. If you opt for the annual subscription, you can save a lot of money. You should try out a month-long trial membership before upgrading to an annual membership to avoid burning a hole in your wallet.
iOS users are not left out of course, you can download the app from your App store and make grocery shopping your past, already!
How Much Does Membership on Shipt Cost?
The Shipt app is completely free to download and install from the Google Play store, but if you want to place an order, you must first have a valid membership. You have the option of joining one of two membership schemes.
The monthly membership plan would cost you about $14 a month, while the annual membership plan would cost you $99 a year, which works out to $8.25 a month, or just over half of what you would pay for a monthly membership. You may want to try annual membership s it saves you money in the long run than a monthly subscription.
If your order is over $35, you will not be charged any delivery fees; however, orders under $35 will be charged a flat $7 delivery fee, which will be added to your final bill. The price of items purchased via Shipt can vary marginally from the store price. This is all a ruse to mask the fact that you are being given the convenience, and the company is accessible and even outspoken about the pricing.
How Does Shipt Work?
Shipt goes through a lengthy procedure to ensure that you get only the best facilities. However, before you can take advantage of all the advantages, you must first take precautions to ensure that your groceries arrive on time and without causing any inconvenience to the shopper, store, or you.
The following is a list of links that will help you understand how Shipt functions. Without further ado, continue reading to learn more.
Download the application
The first move is to build a user account. You can do so by going to the Google Play Store and installing the Shipt app. The software is available for both iOS and Android devices. You can also sign in and build an account if you are using a PC or laptop to access the website.
All you have to do is enter your credentials into the application or website. Your account will be established after you enter your name, email address, and a strong password. You can log in to your account at any time using your computer or phone. Creating an account is absolutely free of charge.
Add your location and choose a store
You are now signed into the system after creating your account. You can use the GPS to add your location or manually enter the address where you want your groceries delivered. After you’ve entered the area, you’ll see a list of stores that operate in tandem with Shipt.
If you find a store where you already have a membership card or reward points, you can enter that information into the system to take advantage of those benefits as well.
Add products to your shopping cart
Once you’ve decided on a specific store where you want to buy your food, you’re ready to go. Begin by looking at the items you want to purchase. The items are divided into groups to make shopping even more convenient for you. You will also see what items are currently on offer.
If you’ve used the app before, it’ll give you a running total of what you’ve bought in the past, as well as a section of suggested items to round out your shopping experience. When you’ve agreed on the product you want to buy, click “add to cart.” When you’re done, you can scan your purchases and check out.
Select a membership plan
Even though downloading the app is free, you must purchase a valid membership in order to place an order. The monthly membership will set you back $14 a month, while the annual membership will set you back $99 per year.
Since groceries are a regular need, it is recommended that you choose the annual package because it will save you a considerable amount of money while also providing you with flexibility because you will not have to go through the hassle of paying for your membership every month; instead, you can do it once a year and be done with it.
Select a delivery time slot
Once you’ve chosen a membership package that fits your needs, all that’s left to do is position your order and check out. Following that, you must enter your phone number, confirm your delivery address, and choose a payment form. Due to the fact that all orders are prepaid only, you can pay with a debit or credit card. Then you must choose a delivery time slot.
There’s a good chance you’ll have your groceries delivered the same day, but that depends entirely on your location and the time you put your order. You can take advantage of a delivery window that is available for up to three days.
Then you must also decide whether or not it is appropriate for the shopper to leave the groceries unattended.
Substitute your preferences
It is likely that the particular product that you have ordered is not available at the store. It is important that you be given three choices to choose from in this situation. Continue reading to learn more.
- Please contact me so that I can make a decision.
- Choose for me
- Do not make any substitutions
Whatever choice you choose will apply to your entire order and you can then place your order after double-checking all of the details you’ve given.
Receive your order
You will receive a notification when the shopper arrives at the store to begin shopping; any adjustments can be made by you before the shopper begins working on your list, at this point. If there is a replacement, you can get a text message from the shopper.
Always ensure that you’re available for the delivery slot if you’ve rejected the offer of a drop-off and would rather confirm your delivery. You can get a text message when the shopper is on his way to deliver your groceries. The groceries are usually delivered within the first two hours of the delivery slot.
Which Stores Partner with Shipt?
The participation of various grocery stores throughout the United States of America is one of the many reasons for the groundbreaking success of the phenomenal grocery shopping app.
This merger has benefited both parties as Shipt extends the reach of these stores to more customers and the said stores rake in more revenue as a result of a wider reach.
The on-demand economy has provided offline retailers with an opportunity to gain. As a result, Shipt stands out as a futuristic app among other on-demand delivery services. The following is a list of stores that have worked with Shipt successfully.
These are the major stores working with Shipt currently, you can enquire about the stores near you that work with Shipt with the help of the application.
- Winn Dixie
- Lowes Foods
- Piggly Wiggly
- ABC Fine Wine
- Office Depot
How Much do shoppers make on Shipt?
Prior to when Shipt announced a change in its Shopper pay structure in February 2020, Shoppers would earn 7.5 % of the overall receipt and a $5 flat rate.
For instance, if a customer orders groceries worth $100, the Shopper would get $12.5 ($5 base fee plus $7.5 from the receipt). Depending on the value of the items, your shopping can be completed in minutes or may take an hour.
The new pay structure rather considers the time a shopper will take to complete and order.
Thus, the total earnings a Shopper makes on Shipt is wholly dependent on the number of orders completed as well as the market they work in.
Shipt states that experienced Shoppers can make anywhere between $16 to $22 per hour. If we take a normal 40-hour workweek as a basis, then shoppers would earn between $2,560 and $3,520 per month.
If an order is $100, you get:
- $5 per order
- $7.50 (7.5% x 100)
- PLUS TIP
Then you keep 100% of your tips.
Many customers value the help you provide them and tip you generously. As with any other job, you must be smart and creative at your work. There is a high prospect of earning quite some good bucks with Shipt.
If an order is $200, you get:
- $5 for the order.
- $15 (7.5% x 200)
- PLUS TIP
So you’re averaging around $22 per $100 orders. You’re averaging $40 per $200 orders.
However, you need to note that Shoppers have to cover their run around expenses like fuel or insurance, themselves.
Is Being a Shipt Shopper Worth It? Pros and Cons.
Like every other laudable technovention (Technology Invention), the pros and cons of a product determine if such product is worth anybody’s efforts.
Definitely, Shipt is no exception to this logical assessment. The pros and cons of Shipt include;
Pros and Cons of being a Shipt Shopper
|1. You can create your own schedule;
You can determine when you want to shop for clients via Shipt. Thus, you need not report for work as a regular 9 to 4 demands. This enables you to have a full-time job and still side hustle with Shipt.
|1. You cover all your Running Expenses;
From internet, to insurance, to gas, to automobile fitness, you bear all the ‘cost of running’ as a Shipt Shopper.
This simply means that Shipt is not concerned with how you get gas or the amount of fuel you have, as long as you deliver orders swiftly and safely in their best conditions.
Thus, every buck earned via the platform should be calculated as profit only after deducting your running expenses.
|2. You are Paid per Order;
Shipt pays per order. This means you can averagely earn up to $20/$25 per hour. Thus you see your earnings as you work. Such pay can solve small emergencies that crop up at home.
|2. You are not in the know of what orders you’ll receive;
The element of ‘surprise’ is used by Shipt to ensure Shoppers do not tamper with orders in any way.
Simply, you do not choose what to purchase or leave behind, you simply buy everything because it comes to you suddenly and you have a lil time to decide whether or not to do the shopping.
Once you decide what to complete an order, it behoves on you to judiciously buy everything on the list except the preferred store lacks it.
|3. Tips are allowed;
Often times, tips make an effort more worthwhile. On Shipt, you’re allowed to receive tips and even notified when an order comes with a tip.
|3. You shop by yourself;
Whether side hustle or main job, Shipt shopping is work and so, professional.
Thus, you are not expected to take anybody along with you, not family, not spouse, not kid (s), not friends.
Solely you, your device and the order from the client.
It’s important to heed this operative.
The disadvantage is that an area may not be safe enough, especially if you’re vulnerable to being bullied or harassed by other criminally minded humans.
|4. Free Shipt membership;
As a Shipt Shopper, you can be a client without subscribing for any paid membership plan.
This way, you don’t just earn on Shipt, you also access the plaftorm as a client without paying to be a member.
Thus, even if you do not want to use the free-membership slot, your family members can enjoy the huge waver.
What do I Need to Work as a Shipt Shopper?
The company’s requirements are very straightforward. All you simply require include;
- A formal interview on how you would handle clients. Your answers will be reviewed before you get approval.
- Valid car insurance.
- Valid driving license.
- Smartphone for the app.
- Background check.
How Does Shipt make Money?
According to Crunchbase, Shipt has raised a total of $65.2 million across 3 rounds of venture capital funding. Investors are Greycroft, e.ventures, as well as Harbert Growth Partners.
In December 2017, Shipt was acquired for $550 million in cash by Target.
Of course, these investors are not Shipt’s revenue, they only supply capital for Shipt to make more money.
Thus, Shipt generates its revenue in several known ways;
The bulk of Shipt’s revenue is generated by the membership fee that its users pay on either a monthly or annual basis.
The membership allows users to access discounts. Furthermore, users don’t have to pay for shipping on any order above $35.
The monthly subscription costs $14 while the annual membership comes in at $99 per year. Just like any modern-day subscription, the membership can be cancelled at any time. Memberships, furthermore, can be tested for 2 weeks free-of-charge.
Delivery & Service Fees
Just with any other delivery service, users will have to pay delivery and service fees. Delivery fees are used to cover the cost of shipment while service fees account for things like collecting the groceries.
These fees are then used to pay the Shoppers. In most cases, platforms like Shipt pocket a portion of those fees for themselves.
Commission On Sales
Shipt receives a commission every time a product is sold through its platform. It does so through a revenue-sharing agreement it has with its retailers.
The company essentially pockets a percentage of the price that the items sell for. The actual amount is dependent upon the agreement it made with the retailer.
Given that retail is often characterized by lower margins, it can be assumed that its commission is somewhere in the single-digit percentage range.
Last but certainly not least, Shipt also generates revenue by marking up prices. Normally, prices are anywhere between 10 to 20 percent higher on the platform compared to in-store shopping.
That means an item selling for $10 in the grocery store would cost between $11 to $12 on Shipt. Shipt, in all likeliness, employs a dedicated forecasting team that uses statistical methods to determine ‘appropriate’ prices.
Finally, we have exhausted all we researched about Shipt and how it makes money. It is pouring hope that your curiosity is magnanimously satisfied and all your concerns addressed in the same vein.
It’s very okay to sign on to the Shipt platform, either as a member or a Shopper.