Whatnot: Revolutionizing Collectibles with Live Stream Shopping
Company profile
Company business details
Strategies
Launch Stage
Initial Marketplace Launch
Whatnot's first launch involved creating a website that featured tens of thousands of authenticated Funko Pop listings. The founders did not initially own the inventory; instead, they developed a pricing formula to list these items. When a customer made a purchase, they would buy the Funko Pop from eBay, authenticate it themselves, and then ship it to the customer. This approach allowed them to test the market demand for Funko Pops while building a marketplace.
Growth Stage
Mobile App Development and Referral Drops
After analyzing the initial launch data, Whatnot identified that their website was not engaging enough to retain users. They quickly pivoted to develop a mobile app, which included a feature called 'the drop.' This feature allowed users to earn raffle tickets by sharing referral codes and content, incentivizing them to invite others to the platform. The first drop attracted 100 participants, and subsequent drops saw increasing engagement, demonstrating the effectiveness of this referral strategy.
Influencer Partnerships for Trust Building
To address the lack of trust from users who were hesitant to purchase from a new app, Whatnot's founder focused on building relationships with Funko Pop influencers. By collaborating with these trusted figures in the community, they created YouTube videos that showcased the safety and reliability of the platform. This strategy helped to establish credibility and trust, leading to increased user engagement and sales.
Cross-Listing Tool for Sellers
As Whatnot began to build a buyer base, they recognized the need to attract real sellers to their platform. They developed a cross-listing tool that allowed sellers to list their inventory on both Whatnot and eBay simultaneously. This innovation leveraged Whatnot's established reputation on eBay, enabling new sellers to gain visibility and sales without having to build their own reputation from scratch. This strategy significantly increased seller participation and sales on the platform.
Launch of Live Shopping Feature
In response to the growing trend of social commerce, Whatnot launched a live shopping feature. The development process was rapid, with the team working intensively to create a minimal viable product. The first live sale, conducted by the founder, resulted in selling out $5,000 worth of Funko Pops in just two and a half hours. This launch marked a significant inflection point for the business, leading to a dramatic increase in growth from 20% to 120% in the following month.
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