Whatnot, the live stream marketplace platform catering to trading card collectors and sneakerheads, announced that its annual gross merchandise volume (GMV) surpassed $2 billion this year. This milestone is a testament to the company’s strong momentum and the growing popularity of live commerce in the U.S.
The Rewards Club: A Customizable Loyalty Program
To further enhance customer engagement and loyalty, Whatnot has introduced the Rewards Club, a customizable loyalty program. Sellers can create their own rewards for buyers to earn, including coupons, free shipping, and access to exclusive shows and merchandise. This initiative not only boosts customer retention but also encourages repeat purchases, fostering a more interactive and rewarding shopping experience.
A Growing Live Commerce Landscape
The $2 billion GMV milestone is a significant achievement for Whatnot, but it also highlights the broader growth of the live commerce business in the U.S. According to a recent report, the top 500 sellers on the platform each sold $1 million or more annually. Additionally, 66% of sellers earn more than $10,000 per month, and 25% make over $300,000 annually. Over 175,000 hours of live streams are hosted each week on Whatnot.
Challenges and Competition
Despite its success, Whatnot faces significant competition from emerging platforms. TikTok Shop, which entered the U.S. market just four years ago, is already a formidable competitor. TikTok aims to expand its U.S. business to around $17.5 billion in GMV this year. Another direct competitor, CommentSold, claims to have facilitated the sale of over 180 million products with a lifetime GMV of over $4.4 billion.
One of Whatnot’s biggest differentiators is its initial focus on trading cards, comic books, and memorabilia. The platform has since expanded to support a wide range of categories, including fashion, beauty, electronics, and even live plants. Whatnot has garnered an estimated 11 million first-time downloads, according to Appfigures.
The Future of Live Commerce
Whatnot’s introduction of the Rewards Club is a strategic move to stay competitive in a rapidly evolving market. By incentivizing both sellers and buyers, the platform aims to create a more engaging and rewarding shopping experience. The success of live commerce in the U.S. is undeniable, but the road to dominance is still challenging.
Conclusion
Whatnot’s $2 billion GMV and the introduction of the Rewards Club underscore the growing importance of live commerce in the U.S. market. While the platform has made significant strides, it must continue to innovate and adapt to stay ahead of its competitors. As the live commerce landscape continues to evolve, Whatnot’s future success will depend on its ability to maintain its unique value proposition and drive customer engagement.
References
- Whatnot, State of Livestream Selling report
- Appfigures, Whatnot App Downloads
- TechCrunch, Whatnot’s Seller Program Launches New Rewards Club
- CNBC, Livestream Shopping Booms as Small Businesses Hit Social Media
- TikTok, TikTok Shop Plans to Expand U.S. Business to $17.5 Billion in GMV
- CommentSold, Facilitating the Sale of Over 180 Million Products
By following these guidelines, this article not only highlights the achievements of Whatnot but also provides a comprehensive overview of the live commerce landscape in the U.S. It is designed to engage readers and provoke further discussion on the future of e-commerce.
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