Whatnot, a livestream marketplace platform for trading card collectors and sneakerheads, announced Wednesday that it has surpassed $2 billion in annual gross merchandise value (GMV) this year.
GMV's milestone comes on the heels of recent product launches. Rewards Club is a customizable loyalty program where merchants can create their own rewards and customers can earn, including coupons, free shipping, and access to exclusive shows and products.
Whatnot's new growth metrics not only highlight the company's strong momentum, but also highlight the growth of its live-commerce business in the U.S., although it's still far behind China, where livestream shopping is a $512 billion business. I'm doing it.
Whatnot revealed the numbers in conjunction with its annual “State of Livestream Selling” report, which found that the top 500 sellers each sold more than $1 million on the platform. Furthermore, two-thirds (66%) of sellers earn more than $10,000 per month through livestream sales, and one in four sellers earn more than $300,000 annually. Whatnot hosts over 175,000 hours of live streams every week.
Despite Whatnot's popularity among millions of users, the rise of competitors in the space poses a major challenge for the five-year-old platform. Whatnot was founded four years before TikTok Shop entered the US market. However, short-form video apps are already far ahead. TikTok reportedly plans to expand its U.S. business to approximately $17.5 billion in GMV this year.
Meanwhile, one of Whatnot's direct competitors, 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 that it was originally founded to sell trading cards, comic books, and memorabilia. Since then, due to its popularity, it has expanded to support a wide range of categories such as fashion, beauty, electronics, and even live plants. In terms of app installs, Whatnot garnered an estimated total of 11 million first downloads, according to Appfigures.
Image credit: Whatnot
Whatnot aims to stay competitive with rivals by introducing perks tools for merchants to encourage repeat purchases and interactions. The new Rewards Club feature allows buyers to complete certain achievements to advance to Bronze, Silver, Gold, Platinum, and Diamond levels and gain access to more benefits. Each Seller establishes their own criteria for achievement and rewards for each level.
To unlock the Bronze level, buyers must purchase from a seller, spend at least $10 on the product, or watch at least three live shows for 10 minutes in a row. To reach the Silver, Gold, Platinum, and Diamond levels, buyers must purchase a certain number of products from the seller or spend a certain amount of money.
Rewards Club has been available to a group of 160 beta testers for several months now, with promising results, the company reports. Using this program, buyers saw a 12% increase in spending and sellers saw a 12% increase in sales per hour. Additionally, the number of repeat buyers who purchase from an individual seller more than once has increased by nearly 20%.
The program is now available to all eligible sellers who have demonstrated a “continued track record of success with Whatnot,” according to the company. To qualify for the Rewards Club, a seller must complete 50 orders, have more than $1,000 in lifetime sales revenue, be active for at least 30 days, and have a seller rating of 4.7 or higher. You also cannot violate Whatnot guidelines.
The Rewards Club operates on a seasonal basis and resets every three months. The season begins on September 9th and runs until December 2nd.