Whatnot is a live commerce platform focused on real-time auctions, where sellers and content creators can interact directly with buyers through live streaming.
Its model centers around immediacy and interactive experiences, allowing users to bid in auctions, buy products directly, and participate in live chats to create a more engaging experience. Unlike traditional marketplaces, Whatnot combines entertainment with shopping by using the viral nature of live content to drive sales.
The platform was founded in 2019, initially focusing on the buying and selling of collectibles like Pokémon cards and action figures. Over time, it expanded its offerings to include categories like fashion, technology, and limited-edition items, attracting both independent sellers and large brands. Its growth was fueled by significant investment rounds and the growing trend of live shopping, solidifying its position as a key player in live commerce.
Whatnot is about connecting sellers and buyers in real time, taking advantage of the immediacy of auctions and active public participation. To achieve this, the platform has a set of features that make it a one-of-a-kind option in live commerce:
Live, Interactive Auctions: Whatnot lets sellers host real-time auctions, where buyers can place bids while interacting directly through a live chat. This creates a more dynamic and competitive experience compared to traditional marketplaces.
Instant Buy ("Buy It Now") Option: In addition to auctions, the platform offers a direct purchase option, allowing users to buy products without waiting for an auction to end.
Seller Verification and Product Curation: To guarantee trust and security, Whatnot has an approval process for new sellers and a product authentication system, particularly for categories like collectibles and fashion.
Gamified Shopping Experience: The platform integrates gamification elements, such as live giveaways and challenges, which encourage buyer engagement.
Monetization for Creators and Sellers: Streamers and sellers can earn revenue through product sales during their live streams, tapping into the direct connection with their audience and the dynamics of scarcity and exclusivity.
Social Media Integration: Whatnot allows content creators to share their streams and products on platforms like Instagram, TikTok, and YouTube, making audience and potential customer acquisition more effective.
Optimized Mobile App: The platform is primarily designed for mobile devices, providing an intuitive interface for streaming, bidding, and purchasing with ease.
Buyer and Seller Protection: It offers security features like fraud protection and a dispute resolution system to handle issues in transactions.
Its operation is based on three key factors: sellers, buyers, and the platform as the intermediary. The complete cycle around these elements works as follows:
Seller Registration and Approval: To sell on Whatnot, you need to apply for access and go through a verification process. The platform reviews the applicant's experience, inventory, and ability to manage live sales.
Creating and Scheduling Streams: Once approved, the seller can schedule live events where they showcase products, answer questions in real-time, and manage auctions or direct sales.
Auction and Sales Dynamics:
In auctions, buyers place bids in real time, and the highest bidder at the end of the auction wins the product. The auction typically lasts between 30 and 60 seconds.
In direct sales, buyers can purchase items instantly at a fixed price.
Real-Time Interaction: Users can comment, ask questions, and receive live responses from the seller, creating a more personal and transparent experience.
Payments and Shipping Management: Buyers make payments directly through the platform, and Whatnot handles the shipping process, providing sellers with prepaid labels to simplify logistics.
While both Whatnot and TikTok Shop (as well as YouTube Shopping) are platforms that integrate live commerce, each has different approaches, audiences, and business models. Here are the main differences:
Whatnot: Designed exclusively for live auctions and the sale of products in interactive streams. Its value proposition is based on immediacy, competition among buyers, and community experiences around specific niches (collectibles, fashion, technology, etc.).
TikTok Shop: An extension of TikTok's ecosystem where creators can sell products through videos, live streams, and an integrated marketplace. Its primary focus is on content-driven commerce, not necessarily in an auction setting.
Whatnot: Relies on real-time auctions and direct sales during live streams. Sellers must actively engage with buyers.
TikTok Shop: Offers multiple sales formats, including pre-recorded videos, links in posts, live streams, and an integrated shop on creators' profiles.
Whatnot: Requires a verification process for sellers, who must demonstrate experience and quality in their products. The platform maintains greater control over who sells, reducing the risk of counterfeit products or unreliable sellers.
TikTok Shop: Allows practically anyone to register as a seller with fewer restrictions, making it easier for new sellers to join. This, however, increases competition and the potential risk of lower-quality products.
Whatnot is ideal for sellers looking for a dynamic selling experience focused on niches like collectibles or fashion, but it requires ongoing interaction and active management of shipments. For buyers, it offers a more exciting experience compared to a traditional marketplace, although it’s important to avoid impulsive purchases during auctions.
If your strategy involves building an audience and selling in real-time, joining this platform could present itself as a great opportunity in the growing live commerce market.