Livestream shopping app Whatnot adds rewards program as GMV crosses $2 billion mark

What not, that The livestream marketplace platform for trading card collectors and sneakerheads offers some positive news at a time when the overall livestream shopping industry in the US is not gaining traction

The company said Wednesday that its annual gross merchandise volume (GMV) in livestream sales exceeded $2 billion this year, a milestone following its most recent product launch: Rewards Club, a customizable loyalty program that allows sellers to create their own rewards that shoppers can earn, including coupons, free shipping, and access to exclusive shows and merchandise.

Whatnot believes its growth metrics suggest there's still hope for the live commerce business in the US – a market that's still far behind China, where livestream shopping is a $512 billion business , which is supported by its entertainment aspects. However, in the US, livestreaming shopping apps have struggled and even Meta exited the space due to lack of traction.

Whatnot released its latest numbers alongside its annual State of Livestream Selling report, which said the top 500 sellers have each sold $1 million or more on the platform. Additionally, two-thirds of sellers (66%) earn more than $10,000 per month from livestream sales, and one in four sellers earn over $300,000 per year. Whatnot says it hosts over 175,000 hours of live streams every week.

Although Whatnot is popular with millions of users, the rise of competition in this space poses a major challenge for the five-year-old platform. Whatnot launched four years before TikTok Shop entered the US market; However, the short video app is already well ahead. TikTok reportedly plans to expand its US business to a GMV of around $17.5 billion this year.

Meanwhile, CommentSold, one of Whatnot's direct competitors, claims to have enabled the sale of more than 180 million products with a lifetime GMV of over $4.4 billion.

While Whatnot's GMV may not seem as high as TikTok Shop or other platforms, it is important to recognize that Whatnot has successfully carved out a niche for itself as a platform for collectors, especially in contrast to others that focus primarily on sales of fashion and beauty focus products. One of Whatnot's biggest differentiators is that it was originally designed to sell sports trading cards, action figures, comics and memorabilia. However, the platform has now expanded to support more categories such as fashion, beauty, electronics and even live plants.

Whatnot also stands out for its “sudden-death” auctions, where the last buyer to bid gets the item, creating competition between users and hype around the livestream.

Based on app installs, Whatnot has achieved an estimated 11 million total initial downloads, according to Appfigures.

Whatnot wants to stay competitive with its competitors by introducing a rewards tool for sellers to encourage repeat purchases and engagement. The new Rewards Club feature allows buyers to complete specific achievements to reach Bronze, Silver, Gold, Platinum and Diamond levels and access more and more rewards. Each seller sets their own criteria for achievements and rewards for each level.

To unlock the Bronze level, buyers must either make a purchase from a seller, spend at least $10 on their products, or watch at least three of their live shows for ten 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 predetermined amount of money.

Rewards Club has been available to a group of 160 beta testers for several months now, and the company reports that it has shown promising results. By using the program, buyers increased their spending by 12% and sellers saw a 12% increase in hourly sales. Additionally, the number of repeat buyers who made two or more purchases from individual sellers increased by nearly 20%.

The program is now available to all eligible sellers who have “a consistent track record with Whatnot,” the company explains. To qualify for Rewards Club, sellers must have completed 50 orders, earned over $1,000 in lifetime sales, been active for at least 30 days, and have a seller rating of 4.7 or higher. You also must not violate Whatnot's policies.

The Rewards Club is seasonal and restarts every three months. The current season started on September 9th and lasts until December 2nd.