Whatnot's Live Shopping Bet: From Pokemon Cards to Global Scale

In a candid conversation on The a16z Podcast, Grant, co-founder of Whatnot, shared insights into the company's rapid growth and its bet on live commerce as the future of online shopping. Whatnot, which started with a simple fascination for collecting and selling items online, has evolved into a dominant force in the live shopping space, boasting an impressive user engagement and an ever-expanding roster of categories.

From Pokemon Cards to a Billion-Dollar Business

Grant traced the origins of his entrepreneurial spirit back to his childhood, specifically to a holographic Pokemon card sale conducted via mail order in third grade. This early experience with online transactions, though primitive by today's standards, laid the groundwork for his future endeavors. "At that point in time, the internet was so nascent. You weren't doing payments online, which is just crazy," Grant recalled, highlighting the trust required for such transactions.

His path eventually led him through impactful roles at YouTube and Facebook, where he worked on marketplace initiatives. These experiences, combined with his passion for collectibles like Funko Pops and sneakers, culminated in the founding of Whatnot with co-founder Logan. The company's genesis was rooted in observing friends re-engage with their childhood hobbies and recognizing a stagnant market that could be revitalized.

The Power of Entertainment in E-commerce

Whatnot's core value proposition lies in its ability to blend entertainment with shopping, creating an engaging experience that keeps users returning. "Users don't give a shit about the market. They care about whether they're going to enjoy the thing. It provides value," Grant explained. This philosophy is reflected in the platform's design, where users spend an average of 95 minutes daily, often without making a purchase, simply enjoying the interactive and social aspect of live streams.

The platform's success is attributed to its focus on creating a compelling user experience, akin to visiting a physical retail store. "You go to the mall, you hang out with your friends, walk around, have some fun, you know, many times you wouldn't purchase something, just their own experience," Grant said, drawing a parallel to the Whatnot journey.

Live Commerce's Global Surge and US Potential

The conversation highlighted the significant disparity in live commerce adoption between Asia and the US. While Asia sees over a third of all commerce happening via live streams, the US is still in its single digits. Grant is optimistic about closing this gap, emphasizing that live commerce offers a richer and more efficient way to sell and build businesses. He noted that setting up on Whatnot is effectively zero-cost, offering access to a global audience, a stark contrast to the high costs and limitations of traditional retail.

The platform's ability to attract diverse sellers, from small businesses to established brands, and its demand-expansionary nature, driven by discovery, are key to its growth. "Live commerce is just a richer way in which to to sell and build a business," Grant stated.

Empowering Small Businesses and Expanding Categories

Whatnot's commitment to empowering small businesses is a core tenet of its mission. The platform generates billions in sales for these businesses, fostering entrepreneurship in a way that contrasts with the often obscuring nature of larger e-commerce platforms. "Whatnot is sort of the polar opposite. If you're on Whatnot, you're going to have your store, you're going to have your brand, you're going to have your customers, they're going to come back to you," Grant asserted.

The company is also actively expanding into new categories beyond its initial focus on collectibles and fashion. Fresh food and drink, golf, and even live-streamed restaurant meals are now part of the Whatnot experience, demonstrating the platform's versatility and potential to disrupt various sectors of commerce.

The Future of Whatnot: AI, Cars, and Beyond

Looking ahead, Grant outlined Whatnot's focus on empowering more businesses and enhancing the buyer experience. The integration of AI is seen as a key enabler for sellers, assisting with tasks like listing items and inferring metadata, thereby making businesses more efficient while preserving the human connection that is central to the platform. The company is also exploring ambitious new ventures, including the possibility of selling cars on Whatnot.

"There's just an incredible amount of work to do to help more and more businesses grow on Whatnot," Grant concluded. "Our business grows with all those businesses. So we just spend all of our time trying to help build great businesses and make sure that people who are transacting with those businesses have a great experience."