Whatnot, the livestream marketplace platform for trading card collectors and sneakerheads alike, is offering a bit of positive news at a time when the overall livestream shopping industry is failing to gain traction in the U.S.
The company announced on Wednesday that its annual gross merchandise volume (GMV) in livestream sales surpassed $2 billion this year — a milestone that followed its recent product launch: Rewards Club, a customizable loyalty program where sellers can create their own rewards for buyers to earn, including coupons, free shipping, and access to exclusive shows and merchandise.
Whatnot believes its growth metric indicates there’s still hope for the live commerce business in the U.S. — a market that’s still far behind China, where livestream shopping is a $512 billion business, buoyed by its entertainment aspects. In the U.S., however, live streaming shopping apps struggled and even Meta exited the space given the lack of traction.
Whatnot revealed its latest figure alongside its annual “State of Livestream Selling” report, which said that the top 500 sellers each sold $1 million or more on the platform. Additionally, two-thirds of sellers (66%) earn more than $10,000 per month through livestream selling, and 1 in 4 sellers make over $300,000 annually. Over 175,000 hours of live streams are hosted each week on Whatnot, it claims.
Despite Whatnot being popular among millions of users, the rise of competitors in the space poses a significant challenge for the five-year-old platform. Whatnot launched four years before TikTok Shop entered the U.S. market; however, the short-form video app is already way ahead. TikTok reportedly plans to expand its U.S. business to around $17.5 billion in GMV this year.
Meanwhile, one of Whatnot’s direct competitors, CommentSold, claims to have facilitated the sale of more than 180 million products with over $4.4 billion in lifetime GMV.
While Whatnot’s GMV may not seem as substantial as that of TikTok Shop or other platforms, it’s worth acknowledging that Whatnot has successfully carved out a niche for itself as a platform catering to collectors, particularly in contrast to others that primarily focus on selling fashion and beauty products. One of Whatnot’s biggest differentiators is that it was initially created for selling sports trading cards, action figures, comic books, and memorabilia. However, the platform has since expanded to support more categories to garner traction, such as fashion, beauty, electronics, and even live plants.
Whatnot further stands out due to its “sudden death” auctions, where the buyer who bids last gets the item, creating competition between users and hype around the livestream.
Regarding app installs, Whatnot has garnered an estimated total of 11 million first-time downloads, according to Appfigures.
Whatnot aims to stay competitive with its rivals by introducing a rewards tool for sellers to help encourage repeat purchases and interaction. The new Rewards Club feature enables buyers to complete specific achievements to progress through the Bronze, Silver, Gold, Platinum, and Diamond levels to access more and more rewards. Each seller establishes their own criteria for accomplishments and rewards for each level.
To unlock the Bronze level, buyers need to either make a purchase from a seller, spend a minimum of $10 on their products, or watch at least three of their live shows for ten consecutive minutes. To reach the Silver, Gold, Platinum, and Diamond tiers, buyers must buy a specific number of products from the seller or spend a predetermined amount of money.
Rewards Club has been available to a group of 160 beta testers for a few months now, and the company reports that it has shown promising results. When using the program, buyers increased their spending by 12%, and sellers experienced a 12% boost in hourly sales. In addition, the number of repeat buyers making two or more purchases from individual sellers increased by almost 20%.
The program is now available to all eligible sellers who have demonstrated “an ongoing record of success on Whatnot,” as explained by the company. To qualify for the Rewards Club, sellers must have completed 50 orders, earned over $1,000 in lifetime sales revenue, been active for at least 30 days, and have a seller rating of 4.7 or higher. They also can’t violate Whatnot’s guidelines.
Rewards Club operates on a seasonal basis and resets every three months. The current season began on September 9 and runs through December 2.