The Rise and Impact of Live Selling Platforms

Key Points:

• Research suggests live selling platforms like Whatnot are revolutionizing retail by combining auctions with live chat, creating an engaging experience similar to social apps.

• It seems likely that these platforms, valued at nearly $4 billion for Whatnot, appeal to younger consumers with high engagement rates.

• The evidence leans toward brands using live selling for real-time interaction, contrasting with traditional e-commerce's static listings.

Overview of Live Selling Platforms

Live selling platforms, such as Whatnot, are transforming how people shop online by blending live streaming with e-commerce. These platforms allow sellers to host real-time auctions where buyers can interact via live chat, making shopping feel more like a social media experience. Whatnot, valued at nearly $4 billion, exemplifies this trend with its focus on collectibles, fashion, and electronics, fostering a community around shared interests.

How Brands Use Live Selling

Brands leverage live selling to showcase products in action, engage with audiences in real-time, and create excitement through limited-time offers. Many partner with influencers to host events, tapping into their followers' trust. For example, major retailers like Amazon, Walmart, and Nordstrom are experimenting with live selling to boost sales and build brand loyalty.

Comparison with Traditional E-Commerce

Unlike traditional e-commerce, which relies on static listings, live selling offers interactive, real-time experiences. Research suggests live commerce can have conversion rates up to ten times higher, driven by the social and urgent nature of live auctions. However, traditional e-commerce remains dominant for its convenience and broader reach.

Appeal to Younger Consumers

Live selling platforms appeal to Gen-Z and millennials, who value authenticity and entertainment. The social interaction, influencer-driven events, and community feel align with their digital habits. Studies indicate some brands see up to a 20% increase in younger audiences through live commerce.

Introduction

The retail landscape is undergoing a significant transformation with the emergence of live selling platforms, which combine auctions, live chat, and social media to create an engaging shopping experience. Platforms like Whatnot, valued at nearly $4 billion as of recent reports, are at the forefront of this revolution, offering a new way for brands to connect with consumers, particularly younger demographics. This report explores the mechanics of live selling, its benefits for brands and consumers, comparisons with traditional e-commerce, and its specific appeal to Gen-Z and millennials. It draws on insights from industry analyses and market trends, reflecting the state of live commerce as of April 2025.

Understanding Live Selling Platforms

Live selling platforms are online marketplaces where sellers conduct live-streamed auctions or sales events, enabling real-time interaction with buyers. These platforms typically feature live chat, allowing buyers to ask questions, make offers, and engage with sellers and other buyers. This format contrasts with traditional e-commerce by creating a dynamic, social shopping environment. Whatnot, for instance, started in 2019 focusing on collectibles like Funko Pops and has expanded to categories such as trading cards, sports cards, toys, comics, video games, fashion, and electronics. Sellers can host live auctions or list items in Whatnot’s marketplace, with live streams facilitating real-time bidding and community building.

A detailed breakdown of Whatnot’s operations, based on recent analyses, includes:

• Live Auctions: Sellers showcase products via video, interact through chat, and manage real-time bidding, often creating urgency with short durations.

• Marketplace Listings: Traditional fixed-price listings for buyers who prefer a non-live shopping experience.

• Features: Real-time interaction, niche category focus, integrated payment processing, and community engagement tools.

Whatnot’s success lies in its ability to merge the thrill of auctions with the social nature of live streaming, appealing to both sellers and buyers.

How Brands Utilize Live Selling Platforms

Brands are increasingly adopting live selling as part of their marketing and sales strategies. These platforms allow brands to:

• Showcase Products: Live streams provide an opportunity to demonstrate products in action, addressing buyer concerns and highlighting features. For example, fashion brands can model clothing, while tech brands can demonstrate gadgets.

• Engage with Audiences: Real-time interaction helps build stronger relationships, fostering loyalty and trust. Sellers can answer questions, share stories, and create a personal connection.

• Leverage Influencers: Many brands partner with influencers to host live selling events, tapping into their followers’ trust and enthusiasm. This is particularly effective on platforms like Instagram and TikTok, popular among younger users.

• Create Excitement: Limited-time offers and exclusive deals during live streams drive urgency, encouraging immediate purchases. This FOMO (fear of missing out) effect is a key driver of sales.

• Gather Insights: Brands can collect real-time feedback from buyers, helping refine products and marketing strategies.

Major retailers like Amazon, Walmart, and Nordstrom are experimenting with live selling, while established brands like Estée Lauder, Tommy Hilfiger, and Levi Strauss have hosted successful events. According to a 2021 report by MyTotalRetail, live selling is seen as "QVC on Steroids," democratizing online selling for small businesses and large brands alike, with Forbes estimating U.S. revenues reaching $25 billion by 2023.

Benefits for Sellers and Buyers

Live selling platforms offer significant advantages for both sellers and buyers, enhancing the shopping experience:

For Sellers:

• Increased Engagement: The live format allows direct interaction, leading to higher conversion rates. For instance, Canadian retailer ALDO noted a 308% increase in engagement after a 2021 livestream, with 17,000 website views in five days following the event.

• Access to Niche Markets: Platforms like Whatnot cater to specific interests, enabling sellers to reach targeted audiences passionate about particular products.

• Lower Fees: Compared to traditional e-commerce, live selling platforms often have lower transaction fees, such as Whatnot’s around 11%, making them cost-effective.

• Real-Time Feedback: Sellers can adjust strategies based on live buyer reactions, optimizing sales on the fly.

• Community Building: Regular live streams help cultivate loyal followers, turning one-time buyers into repeat customers.

For Buyers:

• Interactive Experience: The ability to ask questions and see products in real-time provides a more informed shopping experience, akin to in-store browsing.

• Sense of Community: Live selling attracts like-minded individuals, creating a community feel around shared interests, enhancing the social aspect of shopping.

• Exclusivity and Urgency: Limited-time auctions and deals create a sense of urgency, encouraging immediate purchases, driven by the FOMO effect.

• Entertainment Value: The combination of live streaming and auctions turns shopping into an entertaining event, appealing to those who enjoy social media and live content.

Comparison with Traditional E-Commerce

Traditional e-commerce relies on static product listings where buyers browse at their own pace, offering convenience and a wide selection. However, it lacks the interactive and social elements of live selling. Live commerce bridges the gap between online and in-person shopping by providing real-time interaction, mimicking the in-store experience with added digital convenience.

Research, such as a 2023 McKinsey report, suggests live commerce can have conversion rates up to ten times higher than conventional e-commerce, driven by the social and urgent nature of live auctions. A table comparing the two models highlights key differences:

Aspect	Traditional E-Commerce	Live Selling Platforms
Interaction	Static listings, minimal real-time engagement	Real-time interaction via live chat and video
Engagement	Lower, passive browsing	Higher, active participation in auctions
Conversion Rates	Typically lower, up to 2-3%	Up to 10 times higher, per McKinsey (2023)
Community Building	Limited, individual transactions	Strong fosters buyer-seller communities
Urgency	Minimal, anytime purchase	High, driven by live event timing
Appeal	Broad, convenience-focused	Niche, entertainment-focused, younger users

While traditional e-commerce dominates in market share and accessibility, live selling excels in engagement and conversion, particularly for younger, tech-savvy consumers.

Appeal to Younger Consumers

Live selling platforms are particularly appealing to Gen-Z and millennials, who are digital natives accustomed to social media and live streaming. These demographics value authenticity, interaction, and entertainment in their shopping experiences, aligning with the offerings of live commerce.

Key factors driving appeal include:

• Social Interaction: Younger consumers enjoy the community aspect, where they can interact with sellers and other buyers in real-time, similar to social media platforms.

• Influencer Influence: Gen-Z and millennials often follow influencers’ recommendations, making influencer-driven live selling events highly effective. For example, TikTok is rapidly growing as a live shopping platform, especially popular among Gen-Z, with its engaging, short-form content.

• Entertainment Value: The combination of live streaming and auctions turns shopping into an engaging and entertaining activity, resonating with their digital habits.

• Authenticity: Live selling allows buyers to see products in real-time, fostering trust and authenticity, which is crucial for younger, skeptical consumers.

According to a 2021 McKinsey report, live commerce has increased some companies’ share of younger audiences by up to 20%, with platforms like Instagram leading for influencer-driven events. A 2023 Giosg blog emphasized live selling as the best way to sell to Gen-Z, highlighting the use of influencers to boost brand exposure and profits.

Market Trends and Future Outlook

The live commerce market is experiencing rapid growth, with Grand View Research estimating its size at $11.58 billion in 2023, projected to grow at a CAGR of 32.0% from 2024 to 2030. This expansion is fueled by the shift toward e-commerce and the preference for online shopping among younger generations. The rise of omnichannel retailing also plays a role, integrating live commerce into broader strategies for seamless shopping experiences across platforms.

Emerging platforms are adapting quickly, offering more options for brands and consumers. For instance, Firework’s 2025 report noted that 55% of U.S. live shopping happens on Facebook, while Instagram and TikTok lead with younger audiences. As of April 2025, the trend continues to gain traction, with brands like Amazon Live gaining popularity through influencer-led promotions.

Conclusion

Live selling platforms like Whatnot are revolutionizing retail by offering an interactive, engaging, and social shopping experience that resonates with younger consumers. By combining auctions, live chat, and community building, these platforms provide a compelling alternative to traditional e-commerce, with research suggesting up to ten times higher conversion rates. Brands leveraging live selling can increase engagement, boost sales, and build stronger connections, particularly with Gen-Z and millennials. As the market grows, expected to reach $87.7 billion by 2028 at a 62.3% CAGR per IdeaUsher, live selling is poised to remain a transformative force in retail, shaping the future of interactive commerce.