Whatnot Growth, AI Coming & More - Episode 102

https://linktr.ee/KarriKennedy

Whatnot is growing faster than anyone expected, and today I’m breaking down exactly what that means for you as a seller. I’m talking about the recent 11.5 billion dollar valuation, how Whatnot stacks up against TikTok Shop and Amazon Live, and why I think community is the real reason this platform keeps exploding. I’m also diving into the new AI tools rolling out, including catalog style listings, the carrier adjustments dashboard for shipping accuracy, and what this means if your package weights and sizes don’t match what you printed. Plus I’m giving you the scoop on the food category and why I think it’s one of the most exciting things happening on the app right now.

#WhyNotWhatnot #KarriKennedy #WhatnotSeller #LiveCommerce #WhatnotTips #WhatnotGrowth #SellerCommunity #WhatnotAI #WhatnotFood #SmallBusinessTips

Transcript

SPEAKER_00 0:29

Hey there guys. I hope everybody is doing really well. Today we are going to talk about the growth of Whatnot, AI, and the food category. So here we go. Whatnot has got a lot of publicity lately. Back in April, it was in Times 100 Most Influential Companies. In May, it was in oh, what is it? CNBC's uh article. Uh it was something like the top 50 disruptors in business or something like that. And so it is it is really growing huge. Um, and then October of 25, you know, whatnot raised 225 million dollars in funding from outside investors. And when they did a valuation with DTS Global and Capital G, they valued TikTok, I mean, not TikTok, whatnot, to be $11.5 billion, guys. This is huge. It is just growing, growing, growing. And I'm imagining that Grant Fontaine has to wake up every morning and just shake his head like Chester Cheetah and just kind of be like, what the hell? Um, yeah, this is insane. Um, here's here's some info. Okay, so we've talked about this before. Numbers have changed a little bit, but the average person spends 95 minutes on this app, and that's almost as much as they spend on TikTok. Okay. And then whatnot says certain categories are totally blowing up. Beauty sales are at 791% up, electronics is up 444%, jewelry is up 259%, and then just this year, first-time buyers are up 285%. It's insane. Okay, now I cannot prove this, and that's one of the things I don't I this is my disclaimer. Uh, whatnot says one out of every eight sellers on the platform does whatnot as their full-time job. I don't know how they would ever figure that out. I was never given a questionnaire. I mean, is that a certain amount of hours? Just because you do 40 hours on this platform doesn't mean you still have a full-time job that you're working 40 hours a week. So I don't know how Whatnot can say that one out of every eight sellers does this as their actual job, but that's what they're saying. Like I said, I'm a little uh critical of some of those numbers that they put out because it sounds like they're flexing and there's no real proof. Um, also, here's how Whatnot stacks up against some competition. Um, TikTok shop and Amazon Live, I guess, are the two big ones that I would think about, you know, in this kind of online shopping. And Amazon Live does like the product demonstrations, and TikTok, you know, has a huge algorithm to, you know, get 150 million US users. That's just US users, and TikTok is everywhere. I don't know. Um, but whatnot has about 60% of all the live commerce like that online right now. So I remember when I found out about Whatnot about two and a half years ago, and a lot of people had never even heard of it. And I mentioned in my last episode that I heard my first commercial like that day, yesterday, and uh it wasn't a real actual commercial. It was on a podcast where a guy was saying, Hey, you know, check out whatnot. So not only has it grown by itself with just you know the natural, organic, you know, people telling one another, but then they went out and they got big people, and I'm not gonna go through all that, but they got big people to come in and they did huge giveaways and blah, blah, blah. And now they're doing advertising, so it's just gonna keep growing, and um, it's already 60%, is what I'm saying. So the difference here though is TikTok and Amazon, they're not personal, they're not community. That's they're not interactive to the level like this. And so I think personally, I think because we're human and we're created for communication and relationship, that's why Whatnot is blowing up. I don't think it has anything to do with some of the stupid stuff Whatnot does, like, you know, putting these little emojis out, like my last episode talked about. I think truly it is the buyers and the sellers and the community. Half the time, people buy stuff they don't want just to support the person who's selling it, or they go into a show to chit-chat just because they like that person's personality. Um, people spend all day, every day on whatnot just visiting and talking to people because they're lonely or or they don't have anything better to do, or they're addicted, or whatever. Um, so I think whatnot will continue to grow. And I think that's good, but I also think it's quite scary because I think when you grow too fast and too much, you can't really take care of the things that need to be taken care of. I talked about some of this, uh, you know, how they're getting sued in the last episode, if you want to go back and listen to that. Um, okay, also one billion dollar uh milestone is another thing. Let's talk about this. They're saying that that whatnot has said that they have sold one billion items. Okay, one billion. Um, Grant LaFet La Fontaine, sorry, I forgot the law earlier. Uh, he told Fortune magazine back in 2020 that a big day for them was 30 orders. 30. And they were filling everything themselves out of their living room, you know, that just had a bunch of boxes. And I think they were just selling like Funko and Pokemon and that type of thing. Now they're doing a couple million orders per day. So they went from, you know, okay, it's in six years. Think about this, guys, in six years, 30 orders a day, to now selling a couple million orders per day. Um, that's huge, that's insane. And the vast majority of all of that has happened in like the last six months. It has grown substantially in the last six months. Um, whatnot announced June 2nd that they're spending the next three to six months uh building AI directly into listings with the goal of improving, um, they said pricing and shipping. The reason I think they're doing this is to, you know, go woo-hoo, you know, they're trying to, that is, I think, a good thing. I I truly I think that the growth is scary and too much, and that maybe they shouldn't be advertising, kind of let it grow naturally. Um, but the thing about this is AI, I think is a good thing because it could help sellers and buyers. And I think that that is going to be just another layer that is going to improve growth. So from their standpoint, where they're trying to grow, this is this is a good thing. Um here's what it here's what it is, basically, talking about AI now. Um, okay, so like you have right now, if you have the same item, like let's say you're selling shirts, right? And you have a red shirt and you have different sizes or colors. Well, it doesn't have to be red shirt. Okay, this generic, I'm making it up as I go, guys. A generic shirt, right? And you have it in lots of sizes and colors, you have to create a separate listing for each one. You would have to say, here's the blue shirt in size medium, whatever. Under the new system, all um, all of them are gonna list be listed under one listing, with each size having its own color and sizes. Well, each size having its own color. Okay. So that's good. It makes it more like a catalog and it's gonna make it easier to manage and um for buyers to shop. That's how it is on Amazon. That's uh I mean, I think if you look at any catalog, I I look at, you know, just think what's the Robert Redford catalog that I like so much. I can't think of the name of it. Anyways, um, that's how it is. If you look at a picture underneath, you know, the it'll say the colors and the sizes or whatever. If you go online, that's the way it does it. And so that is going to be much more manageable. If it sells out of, you know, the three red medium shirts, then you'll see there's no more left. And so that'll be good. On the shipping side with the AI, um, whatnot is rolling out what they're calling, quote, carrier adjustments um dashboard. And um it's it's live now in the US with an international markets coming soon, is what they're saying. And um, it shows you where your labels are getting flagged. So, like you can actually, this is happening with the AI stuff, okay. Right now, if somebody's like, hey, you sent the package and it's been X amount of days, you can't tell where it is or whatever. But now it's gonna allow the buyer and the seller to be able to see where the box is, where it's going, and if it gets flagged somewhere for what reason. And most of the time it's gonna come down to just being inaccurate information. There's a mismatch between what you posted and what they're holding. So, uh a good example of this is for example, let's say it said 480 ounces, and you forgot to change it to pounds, but you were somehow screwing around, your baby cried, whatever, and you put uh four pounds, eight ounces, and and you somehow messed it up, but it was supposed to be 480 ounces. That's a mismatch. You printed up the tag, they pick it up, it's way heavier, and they're like, what the heck? You know, um, it means if you entered the the weight or the size that did not match the package when it went out, they're gonna start charging you. I think that I said I I don't have it with me, guys. Uh, I said it in a previous episode, but I I think it's between August 15th and September 1st that that's happening. It might be September 1st, but you're going to have to start taking care of exactly the size and the weights of everything so this doesn't happen anymore because you're going to start getting an actual fee when this happens. Okay. On top of that, sellers who manage their inventory in Shopify are pretty soon also going to be able to sync it straight into whatnot through this new AI integration system instead of going in and doing everything by hand. I don't have Spotify, but I have definitely thought about, I mean, Shopify, have Spotify. Um, Shopify is a really cool like website that you can have, your own personal website to sell stuff. I've looked into it, guys. It's really cool. I've actually talked to somebody over there who's pretty high up when I was thinking about doing it. If that's something you're interested in, you know, having your own websites and selling when you're asleep and you're not on, you know, whatnot, I think that's a a good idea. Um, but the more sellers reuse their listing templates, the smarter this whole system gets. So whatnot says that the AI actually learns from how you're inputting the information, how you're you're using the data, whatever. So if you click on shipping profiles with shirts on a regular basis, it's gonna do that. If you're selling in a food category, for example, and you're using a certain ounce or something, it's going to figure that out. It's all based on what you're selling. And so that in itself is pretty exciting. I have to say, I like this idea. I I definitely think that this is a step in the right direction. Um, yeah, for me, this is a good win. It's a win for the buyers, it's a win for the sellers, it's probably a win for whatnot because they're not going to be paying for all these little fees through USPS. It's a win for USPS because they're not going to have to deal with as many indiscrepancies between, you know, what people are sending out. And I know a lot of sellers, I know this just from talking to different people. Um, but there's some unsavory sellers on the app, and they have been taking advantage of USPS and you know, just doing some unsavory things when it comes to that, and they're getting busted. So I'm pretty happy about that too. Um, okay, now with the last thing. Whatnot started selling shelf stable snacks and candies back in, well, I think it's been, I think it was 24, but they're saying 25. Um, but April of this year, they went into fresh food. And I just think I've said this before. I just think this is one of the coolest things ever. But I also have suggested that it switch instead of having every category and everything on one app, that they break it up. And I'm thinking that the fresh food, the digestible things, whatever could be in one area, and then like coins and trading cards and whatever could go in one area. I guess plants could go there too. Anything that's living, I think, should go or you know, something edible or living should be on a different platform. I'm just thinking, as it keeps growing, I just don't know how it can sustain. I don't know. I'm not a computer science guy. I'm not techie. I don't know. But I just I like the idea that it would separate so it wouldn't be so much competition, so that it wouldn't fall down every once in a while, so that the algorithm would really send people to where they're going instead of all over the place. You know, I don't know. That's just kind of where I'm at. But I think that this is super exciting that we have this food category. Um, between July 25 and January 26, the food category grew 30% month over month. And uh, so if you want to go check it out, I definitely suggest you go search like meats and seafoods inside the app and go check it out, guys. It is really, really cool to see this stuff and to get actually good food. There's coffee, there's tea, there's um, there's this one girl I saw recently. She's selling drinks. She shows the picture where it looks like you're actually getting like an iced drink in the mail, but it's a powder that you mix, you know, with water. But there's everything in here, guys. There's candy, there's soft drinks. I mean, it's just nuts. And it's it's really cool because it's going to open up. I just think this is going to be a category that just continues to grow. And personally, I have not actually bought any steaks or seafood. If anybody wants to send me any of that, I am more than happy to taste test for you. Um, my phone number is in my profile under Carrie Kennedy. Um, it's K-A-R-R-I Kennedy. You guys can follow me. I've uh got some shows upcoming. I'm trying to get over being sick and having a sore throat. So I'm deciding whether or not I'm having a cat show today at seven o'clock. Um, anyways, um, so yeah, that's it, guys. Whatnot's growing huge. It doesn't seem like it's gonna stop. I don't know if it'll ever, you know, split and be one thing over here and one thing over there. I don't know exactly what they're going to do as this growth continues, but now that they're doing advertising, this is gonna take it to a whole nother level because I know just Ed Ed Milette, the guy I mentioned in the last episode, the podcast, um, he's huge. He's huge. I don't know how many podcast listeners he has, but they're all gonna listen to that. And a few of them might come over to whatnot. And next thing you know, they're gonna be buyers or sellers. So if he they're doing that just on that podcast, where else are they? How uh how else are they advertising? How much bigger could this grow and be and develop? I mean, I I don't know. Um, personally, I'm still in the doghouse. I'm I've got the good rating right now because I tried to give money away and I didn't run the giveaway. I forgot about it. Whatnot's not talking to me, they're not reviewing it. So until August 17th, which is two days after my birthday, I'm in the doghouse. My numbers, even when I'm giving 60 bucks uh and in gift cards away or 50 bucks in gift cards away, which I've done the last two shows, I'm still only getting like 15 people in there on average, where I was at like 35 to 65 always. And so having your rating go down, guys, that's important. It sucks. They don't talk to you, they don't communicate with you, there's not, you know, a grace period, and they're not thinking about your intentions, you know, or how hard you work or any of that. So work, guys, to keep that rating score up. If you're unaware of how to do this, when you go into whatnot, there's a seller hub at the bottom, and you can go in there and you can check out, you know, what your your rating is, but you always need to keep it excellent to get that algorithm to go in. This is my first time this has ever happened in two and a half years, and it bites, guys. It has been awful. And I even even having these shows, I've got two shows upcoming, and I'm just like, I won't make as much money, I won't do as well of sales. There's a part of me that's like, why even keep trying? Maybe I just wait till August you know 18th when I get out of jail, because that's what I'm calling it, whatnot jail. It just it's the algorithm not rewarding me for being excellent. So if you're wondering why your sales are down or why your room size is down, you might want to go look at what your rating is. Um, anyways, that's about it, guys. Um, if this episode has helped you, leave me a five-star review. It helps more people find us. Um, and if you've got any questions of your own, if you want a review of how you're doing, if you need help getting going, yes, I am very transparent. I am very matter-of-fact. And I do about one to four consultations per week. I only do them on Wednesdays or Saturdays. Um, I don't have any actually this week on Saturday. Um, so I have an availability. If you want to call me, my phone number is 832-607-1526. You can book a $20 per 30-minute consult. Usually they're about an hour, hour and a half, dependent on what you're selling. But if you just have a quick question, you can just even text me and ask me. I have people all the time who message me and say, Hey, can you help me with this shipping issue? Or hey, do you think that um you could share this information or that information with me? And I'm always happy to do that, guys. When I started, I didn't have a clue. And I've sold in 15 categories, sold a lot of stuff on here. And uh yeah, I do a good job. Um, I'm all about integrity and best practices and doing what's right. So if you're not in that category and you're trying to pull a fast one, don't give me a call. Um, the other thing I would like to say is I think we all need to also just consider your time. This is the last thing I I've kind of gone off track here, but think about your time, how you're spending your time today, guys, how you're managing, you know, sourcing and packing and cleaning and you know, just taking care of it, how much time you're spending on the app. Um, that's just my suggestion for you. I know all of us have issues with, you know, not enough hours in the day sometimes. And uh I've been sick off and on this last week, and um I've been down, and it's hard for me as a type A to be down. But um yeah, I most of the time I'm going 90 to nothing, and it's like go, go, go, go. And uh it's not, it's not good for us, guys. Go out today, take a walk, take a time to read a book and uh, you know, pet the dog or the cat or whatever, you know, volunteer somewhere. Um, consider going to church, you know, think about your time, but also try to manage your time wisely. You know, take breaks if you're working, working, working. Set a timer for 20, 30 minutes and then take a break for 15 minutes and then go back. You know, you also have to take care of yourself because a lot of us on here, we work and we work and we work and we give and we give and we give, and it's just not a healthy balance, it's not sustainable. Okay, guys. Well, that's it. We have talked about the growth of AI of whatnot. We've talked about AI, we've talked about uh, you know, fish and steaks on the app and all of that, and uh a few little tips here. So I hope this helps you guys and uh that you have a great day. Once again, if you need anything, my phone number is in my profile. It's K A R R I Kennedy K E N N E D Y on Whatnot. And I hope you guys have a tremendously wonderful day. All right, talk to you later. Bye bye.