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Live commerce is revolutionizing online shopping by combining live streaming with e-commerce. Platforms like Whatnot let users shop in real-time through live auctions, creating an engaging and interactive experience. This trend is especially popular among younger, tech-savvy consumers, with the global live commerce market expected to grow from $10 billion in 2022 to $87.7 billion by 2028, at a 62.3% CAGR.
Whatnot is a leader in this space, offering real-time video streaming, chat features, and seamless payment processing for buying and selling collectibles. As live commerce grows, platforms like Whatnot are setting new standards for user engagement in online shopping.
Another big name is CommentSold, a top live-selling platform in the U.S. With nearly $4 billion in lifetime sales and over 7,000 merchants, CommentSold powers a significant portion of live sales transactions in the U.S.
In this blog, we’ll explore how to build a live commerce platform like Whatnot. From live streaming and e-commerce integration to chat and payment systems, this guide will help you understand the key components to create your own successful platform.
Overview of the Whatnot Platform
Whatnot is a live commerce platform where people can buy and sell unique items and collectibles through live-streamed auctions. Launched in December 2019 by Greg LaFontaine and Logan Head, Whatnot started focused on Funko Pops but has since expanded to include a wide variety of categories like sports cards, comics, fashion, and much more.
Key Features
- Live Streaming Auctions: The core of Whatnot is its live auctions, where sellers showcase items in real-time, interacting with buyers like a live TV shopping show. It’s a fun, social shopping experience similar to platforms like Twitch.
- Dual Selling Options: Sellers have the choice of hosting live auctions or listing items in the Whatnot Marketplace, giving them flexibility to choose the selling method they prefer.
- Community Feels: Whatnot emphasizes building a community. Sellers and buyers connect over shared interests, and during live streams, sellers engage with buyers, answer questions, and create an interactive atmosphere.
Key Market Takeaways for Live Commerce Platforms
According to GrandViewResearch, the global live commerce platform market is booming, valued at USD 918.9 million in 2023, and is projected to grow by an impressive 21.2% annually from 2024 to 2030. This growth is driven by the fusion of e-commerce and social media, creating engaging, interactive shopping experiences that connect sellers and buyers in real-time.
Source: GrandViewResearch
As consumers look for more personalized and immersive ways to shop, live commerce platforms are stepping in to offer just that, with live-streamed interactions that make shopping more dynamic and social.
Advanced technologies like AR and AI are taking these platforms to the next level, offering tailored recommendations and smoother transactions during live streams. A great example of this is Bagriculture, a U.S.-based small business selling pre-owned designer handbags, which saw up to $100,000 in daily sales through live shopping in 2023—far surpassing their in-store sales.
Big social media platforms like Facebook, Instagram, and TikTok have also embraced live shopping, letting brands tap into their huge audiences for direct sales during live streams. This blend of social interaction and shopping not only encourages spontaneous buying but also makes the whole shopping experience more engaging and enjoyable for consumers.
developers, with combined 50000+ coding hours experience
Why is This a Perfect Time to Invest in a Live Commerce Platform Like Whatnot?
The live commerce market is expanding rapidly, with platforms like Whatnot setting the pace in offering seamless, interactive shopping experiences. This model merges e-commerce with live streaming, allowing hosts to engage viewers in real-time, showcasing products dynamically and entertainingly. Consumers are drawn to the personal connection and instant gratification that live selling offers, which drives up conversion rates and customer loyalty.
As seen with CommentSold, which has processed nearly $4 billion in GMV and works with over 7,000 merchants, the live commerce ecosystem is thriving, providing a proven, profitable business model for newcomers.
In addition to Whatnot and CommentSold, TalkShopLive is another key player in live commerce. It combines talk-show formats with shoppable broadcasts, charging a 10% commission on GMV and a per-product fee. This model has gained popularity with celebrities and brands eager to tap into the live-streamed shopping trend.
As consumers increasingly seek out more interactive and engaging ways to shop, platforms like these are paving the way for a future where live commerce is a mainstream channel for e-commerce.
Live shopping, huge in Asia, is now catching on in the West!
Tilt, a U.K. startup, just raised $18 million to grow its real-time fashion shopping app. Founded by ex-Revolut team members Neil Shah and Abhi Thanendran, Tilt has already had over half a million users since its launch last year. The fun, interactive vibe of live shopping is a big draw, and experts predict it could make up 10% to 20% of all e-commerce by 2026.
With strong growth from existing platforms, it’s clear the market’s ready for more. Live commerce isn’t just a trend—it’s the future of shopping!
Business Model of the Whatnot Platform
Whatnot is an exciting online marketplace that blends traditional shopping with live streaming, offering a fresh and interactive experience for buyers and sellers. Launched in December 2019, the platform quickly gained popularity, especially among collectors of items like trading cards, toys, fashion, and electronics.
What makes Whatnot unique is its live auction feature, where sellers can host auctions in real-time, allowing buyers to interact directly with them and make purchases on the spot.
How Whatnot Makes Money?
Whatnot operates on a commission-based model. When a seller makes a sale, the platform takes an 8% commission on the sale price, plus a small processing fee (2.9% and $0.30 per transaction). This model aligns the company’s earnings with how much is sold, which motivates Whatnot to keep improving the platform to make more sales happen. They also offer special discounts on fees for certain product categories, like vintage comics or rare coins.
In addition to transaction fees, Whatnot introduced another revenue stream with advertising. In May 2023, they launched “boosted livestreams,” where sellers can pay to increase their visibility in category feeds, helping them reach more viewers during their live auctions.
Funding Rounds
Whatnot has raised a total of $484.15 million in funding since its founding. One of the biggest investments came in July 2022 during their Series D round, where they secured $260 million. This funding has helped the company grow rapidly, with a valuation of $3.7 billion, up from $1.5 billion in 2021. This investment is being used to expand Whatnot’s marketplace, enhance the live streaming experience, and add more categories for collectors to shop for.
Growing Fast and Becoming a Leader
Since its early days, Whatnot has seen impressive growth. By the end of 2021, the platform was the leading livestream shopping company in the U.S., with 20x sales growth that year alone. Whatnot started with a focus on collectibles like Funko Pops, but by 2022, it expanded into new categories. The platform has over 2 million app downloads, with most users (89%) based in the U.S.
CEO Grant LaFontaine has described Whatnot as “Twitch meets eBay,” pointing out how it combines entertainment and shopping, which appeals to collectors and enthusiasts.
Strong Financial Performance
Whatnot’s financial success has been impressive.
- In 2024, the company hit a major milestone, surpassing $2 billion in gross merchandise volume from livestream sales alone. This growth reflects the platform’s strong position in the collectibles market, especially with items like trading cards driving sales.
- The company’s estimated annual revenue is around $39.7 million, and the platform’s valuation sits at $3.7 billion.
A large portion of Whatnot’s sellers are doing really well too – about 66% make over $10,000 a month, with a quarter of them earning more than $300,000 annually.
Development Steps for a Live Commerce Platform like Whatnot
Developing a live commerce platform like Whatnot involves several essential steps to ensure a seamless combination of e-commerce and live-streaming features. Here are the critical stages for creating such a platform.
1. Market Research and Concept Validation
Conduct thorough market research to identify the target audience, competitors, and current trends in live commerce. Validate the platform’s concept by analyzing user preferences for features such as live auctions, secure payments, and community engagement.
2. Define Core Features
Core features for a live commerce platform should cater to both buyers and sellers. These include live-streaming capabilities for real-time product showcases, secure payment processing to ensure safe transactions, and interactive live chat to enhance engagement. Flexible selling options, such as auctions and fixed-price listings, provide versatility for sellers.
3. Select a Technology Stack
An ideal tech stack for a live commerce platform should balance performance and scalability. For the frontend, frameworks like React, Angular, or Vue.js ensure a responsive user interface. The backend can leverage Node.js, Python, or Ruby on Rails to manage server-side operations efficiently.
4. Build a User-Centric Interface
Design an intuitive and visually appealing user interface for buyers and sellers. Ensure navigation is seamless, live streams are easy to access, and the checkout process is straightforward.
5. Develop Real-Time Live-Streaming
Implement live-streaming features that allow sellers to showcase products in real-time. Use technologies like WebRTC for low-latency streaming and integrate interactive chat features for engagement.
6. Integrate Secure Payment Systems
Provide secure payment gateways like Stripe, PayPal, or custom solutions. Include buyer protection mechanisms that release payments to sellers only after confirmation of product delivery.
7. Include Shipping and Logistics Management
Incorporate tools to manage shipping seamlessly. Offer features like automated shipping label generation, discounted rates, and real-time tracking for buyers and sellers.
8. Focus on Scalability and Security
Optimize the platform’s architecture to handle increasing user demand and live-streaming traffic. Employ security measures like SSL encryption, firewalls, and user authentication protocols to protect data and transactions.
9. Test, Launch, and Iterate
Conduct rigorous testing to ensure the platform functions smoothly under various conditions. Launch the platform in a controlled environment, gather feedback, and make necessary improvements. Regular updates and feature enhancements should follow to keep the platform competitive.
Cost of Developing a Live Commerce Platform like Whatnot
| Development Stage | Details | Cost Range |
| Research and Planning | – Market Research: Understanding target audience, competitor analysis, and industry trends. | $1,000 – $5,000 |
| – Feature Definition: Defining core and advanced features, user flows, and platform architecture. | ||
| Front-End Development | – UI Design: Creating visually appealing and intuitive interfaces for both web and mobile platforms. | $5,000 – $15,000 |
| – UX Design: Ensuring seamless user interactions and optimal navigation. | ||
| Back-End Development | – Core Platform: User authentication, product catalog management, order processing, and payment integration. | $10,000 – $25,000 |
| – Live Streaming Infrastructure: Simplified live video encoding and basic chat features. | ||
| App Development | – Cross-Platform Development: Using hybrid frameworks like Flutter for both iOS and Android to save costs. | $7,000 – $20,000 |
| Features Development | – Live Auction Integration: Basic real-time bidding and purchasing features during live streams. | $2,000 – $5,000 |
| – Product Discovery and Search: Basic search filters and trending product sections. | ||
| – Community Building: Simple user interaction features, such as comments and likes. | ||
| Testing and Quality Assurance | – Functional Testing: Ensuring all features work as expected. | $2,000 – $7,000 |
| – Performance Testing: Evaluating platform scalability and responsiveness under light load. | ||
| – Security Testing: Basic vulnerability checks. | ||
| UI/UX Optimization | – A/B Testing: Limited experiments to optimize user interfaces and conversion rates. | $1,000 – $3,000 |
| – Usability Testing: Collecting basic user feedback and iterating on core design. | ||
| Overall Cost Range | $10,000 – $100,000 |
Variable Factors Affecting the Live Commerce Platform Development Cost Like Whatnot
Several variable factors can significantly influence the overall development cost of a live commerce platform. These factors can be broadly categorized into technical, business, and market-specific considerations.
- Live Streaming Infrastructure: Implementing robust live streaming capabilities, including video encoding, delivery, and low-latency streaming, requires significant investment in infrastructure and technology.
- Real-time Interactions: Enabling real-time bidding, chat features, and other interactive elements during live streams requires specialized development and can increase complexity.
- Inventory Management: Managing inventory levels, tracking product availability, and ensuring timely order fulfillment for products sold during live streams require sophisticated inventory management systems.
- Complexity of Features: The number and complexity of features directly impact development time and cost. Platforms with advanced features like real-time bidding, AI-powered product recommendations, and social integration typically require more development effort.
Conclusion
What I think is that live commerce platforms like Whatnot are revolutionizing the shopping experience by offering consumers a more interactive and engaging way to shop, creating a sense of community and excitement.
Businesses can tap into this trend by developing similar platforms, generating revenue through transaction fees, premium seller features, and even advertising. These platforms also provide valuable insights into consumer preferences and market trends, helping businesses refine their product offerings and marketing strategies to drive growth.
Looking to Develop a Live Commerce Platform Like Whatnot?
Idea Usher is here to help you build a dynamic platform like Whatnot. With over 500,000 hours of coding experience, we specialize in creating scalable and engaging live-streaming platforms. From real-time bidding to interactive features and user-friendly interfaces, we offer end-to-end development support. Our expert team will guide you through every step of the process, ensuring your platform stands out and thrives in the competitive live commerce market. Let us help you bring your vision to life!
FAQs
Q1: How to develop a live commerce platform?
A1: To develop a live commerce platform, you’ll need to integrate live streaming with e-commerce functionalities. This involves building a user-friendly interface where sellers can stream live videos showcasing their products, while users can interact, ask questions, and make purchases in real-time. Key components include a video streaming solution, real-time chat, secure payment gateways, and inventory management tools.
Q2: How do live commerce platforms make money?
A2: Live commerce platforms generate revenue through several streams. They often charge merchants a fee for using the platform, either as a subscription or per transaction. They can also take a commission on each sale made during live streams. Some platforms also monetize by offering premium features, like advanced analytics, marketing tools, and branded storefronts.
Q3: What are the features of live commerce platforms?
A3: Live commerce platforms typically feature live video streaming, real-time chat, and interactive shopping experiences. Users can watch product demonstrations, ask questions, and purchase items without leaving the live stream. Key features also include secure payment processing, integration with inventory management, and personalized recommendations. Social sharing tools, influencer partnerships, and virtual try-ons are often included to enhance engagement and sales.
Q4: What is the cost of developing a live commerce platform?
A4: The cost of developing a live commerce platform can vary depending on factors like complexity, scale, and custom features. Major expenses include building a scalable video streaming infrastructure, integrating e-commerce functionality, and developing mobile and web applications. You’ll also need to account for costs related to payment gateway integration, security measures, user support tools, and marketing.
