Growth Hacking To A Billion Dollar Marketplace

Summary

The marketplace Whatnot used a pricing algorithm to display listings for Funko Pops, even without having the products. They focused on creating a great marketplace experience for collectors and iterated quickly based on customer feedback. Creative marketing strategies, such as implementing a raffle system called "the drop," helped drive user acquisition. Collaborating with Funko Pop influencers on YouTube videos built trust and grew the business. Using easy selling tools and developing a cross-listing tool for eBay helped increase sales. The development and launch of a live shopping feature resulted in $5,000 worth of sales within two and a half hours. Live commerce in the Collectibles category has achieved significant sales, solidifying the belief in its power.

First Five Launches

Whatnot is a live stream shopping platform and marketplace
Grant LaFontaine is the co-founder and CEO of Whatnot
He discusses the first five launches of his company

Buyer Hacks

The most profound aspect of the topic is the initial launch and strategy of the marketplace Whatnot, which focused on selling authenticated Funko Pops.

Key points:

The founders used a pricing algorithm to display tens of thousands of listings, even without having the products.
Funko Pops were chosen as the collectibles category due to its large market with limited alternatives.
The founders aimed to create a great marketplace experience for collectors.
The founder initially used Facebook ads for customer acquisition but faced challenges in getting sales.
They focused on understanding customer preferences and improving the product.
The founder iterated quickly, launching the initial version in about six weeks and gathering feedback.

Creative Marketing

Creative marketing strategies can drive user acquisition and build momentum for mobile apps, such as implementing a raffle system called "the drop" to incentivize sharing and referral codes.

Working with Influencers

Working with influencers is a powerful strategy to build trust and grow a business. The speaker shares their experience of collaborating with Funko Pop influencers to create YouTube videos promoting their app as safe and trustworthy. This collaboration successfully built an audience and gained trust, leading to business growth.

Collaborating with influencers can help overcome trust issues and promote a business as safe and trustworthy.
Working with influencers in a specific niche, such as Funko Pop, can attract a targeted audience.
Creating YouTube videos with influencers can effectively promote a business and build trust.
Building trust through influencer collaborations can lead to business growth.

Easy Selling Tools

Using easy selling tools to grow sales on eBay is the most profound aspect of the topic.

Key points:

Starting a marketplace without real sellers and relying on own inventory
Developing a cross-listing tool to allow sellers to list inventory on both platform and eBay
Significant turning point as it delivered more sales for sellers
Initial sellers attracted to the platform because they were already buyers and had a reputable eBay account with high ratings, building trust with sellers.

New Content Formats

The development and launch of a live shopping feature on a Funko Pop Marketplace resulted in $5,000 worth of sales within two and a half hours. This transformative and engaging experience was inspired by the success of live video on platforms like Instagram and Twitch. The team quickly developed and tested the live shopping product, integrating it into their marketplace without a formal launch event.

Key points:

The company wanted to create a more engaging experience for collectors and enthusiasts on their Funko Pop Marketplace.
They observed the success of live video on platforms like Instagram and Twitch and decided to integrate it into their marketplace.
The team developed and launched the live shopping product quickly, resulting in $5,000 worth of sales within two and a half hours.
The integration of live shopping was done without a formal launch event.

Outro

Live commerce in the Collectibles category has achieved significant sales during the first live sale.
The success of live commerce has solidified the speaker's belief in its power.
Job opportunities at Whatnot and Y Combinator's job board are mentioned in the video.

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