Growth Hacking To A Billion Dollar Marketplace

TL;DR

Whatnot, a live stream shopping platform and marketplace, shares the story of their first five launches, from starting with fake listings to finding success through live shopping.

Transcript

welcome to the first five where growth stage companies funded by y combinator look back on their first five launches hi everyone my name is Anu hariharan I'm a managing director at Y combinator and work without growth stage companies I'm here with grad LaFontaine the co-founder and CEO of whatnot a live stream shopping platform and Marketplace what... Read More

Key Insights

• 🚀 The first launch of whatnot was a website for buying authenticated Funko pops, with fake listings created until actual inventory was acquired from eBay.
• 🔍 Whatnot chose Funko pops as their initial product category due to its size and lack of alternative marketplaces, aiming to target a new generation of collectors.
• ⚡️ The first launch was promoted through Facebook ads, but initially resulted in little to no sales, leading to a need for customer acquisition adjustments.
• 📱 The second launch was the introduction of a mobile app with a "drop" feature - a raffle and referral system that encouraged user engagement and efficient acquisition.
• 📊 The drop feature gained momentum, attracting more users to the app and increasing participation in the raffle.
• 🌟 To address customer trust concerns, a collaboration with Funko Pop influencers was established, boosting credibility and broadening the user base.
• 💰 The next inflection point involved building a strong seller base on whatnot, transitioning from priced inventory to real sellers and implementing cross-listing tools for increased sales.
• 📺 The fifth inflection point occurred with the launch of a live shopping feature, leveraging the power of live video and driving significant growth for the business.

Questions & Answers

Q: Why did Whatnot initially choose Funko Pops as their focus for the marketplace?

Whatnot chose Funko Pops because it was a popular collectibles category with a large market size and limited alternative platforms for buying and selling.

Q: How did Whatnot acquire their first customers after the initial launch?

After launching their website, Whatnot relied on Facebook ads for customer acquisition but faced challenges with high customer acquisition costs and low sales initially.

Q: What was the purpose of Whatnot's second launch, involving a mobile app and the drop feature?

The second launch aimed to address the lack of user engagement and find alternative growth channels by introducing a mobile app and a drop feature that offered raffle tickets for sharing and referrals.

Q: How did Whatnot build trust with potential customers who were hesitant to use their platform?

To build trust, Whatnot worked on collaborating with Funko Pop influencers who already had a trusted reputation in the community and leveraged their support to convey the safety and trustworthiness of the platform through YouTube videos and endorsements.

Q: How did Whatnot transition from fake listings to having real sellers on their marketplace?

As Whatnot built its buyer base, they started attracting collectors who also became sellers on the platform. Additionally, they leveraged their reputation on eBay to persuade new sellers to join by offering cross-listing tools.

Q: What was the significant inflection point for Whatnot's business in terms of growth?

The launch of their live shopping feature was a game-changer for Whatnot, leading to a drastic increase in sales and growth. Within a few hours of going live with the feature, they sold out $5,000 worth of Funko Pops, signaling the success of live stream shopping in the collectibles category.

Summary & Key Takeaways

• Whatnot's first launch was a website with fake listings of Funko Pops, where they would purchase and authenticate the items after a customer made a purchase.

• The company chose Funko Pops as their initial focus because of the growing collector market and the lack of alternatives for buying and selling.

• After launching their website, they quickly moved on to their second launch, which involved building a mobile app and introducing a drop feature with raffle tickets to drive user engagement and growth.