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At Whatnot, Some Are Bidding Away Their Bank Accounts
Newser • • business
Key Points:
- Whatnot, a live-shopping app focused on swipe-to-bid auctions for items like baseball cards and toys, is rapidly growing, expected to generate $1 billion in revenue this year with 20 million new accounts added in 2025.
- The app claims about 60% of the live-commerce market in North America and Europe, streams over 550,000 hours of shows weekly, and is valued at $11.5 billion with backing from major Silicon Valley investors.
- Despite its success, some users report severe financial consequences, including maxed-out credit cards and drained retirement accounts, with one user spending $1.4 million in four months, leading to personal and professional losses.
- Critics argue that Whatnot's design encourages addictive bidding behavior akin to gambling, exploiting users' impulses, while the company counters by highlighting new spending controls, stricter seller vetting, and a strong App Store rating.
- The Wall Street Journal story provides an in-depth look at the app's mechanics, user experiences, and the broader implications of this emerging live-shopping trend.
