#541 - Stephen Somers - Selling on Whatnot

You'll remember that Selling on Whatnot guest Stephen joined The Next 100 Days a while back to talk about building an Amazon business from scratch.Since then, things have moved on quite a bit. Stephen's been deep into a newer side of the business, live selling on Whatnot. The team has been selling trading cards (Pokemon, specifically) and pulling in over $400,000 in the last seven months alone, teaching complete beginners with zero collectibles background to do the same.This podcast features a discussion with Stephen Somers and his evolution from Amazon to the Whatnot live-selling platform.Summary of the PodcastKey TakeawaysBusiness Model Shift: Stephen's company, Marketplace Superheroes, evolved from importing from China to a brand-direct wholesale model on Amazon and a live-selling strategy on Whatnot.Whatnot's Live-Selling Model: The platform combines live video with rapid auctions, creating an interactive, social shopping experience.Pokemon Card Strategy: The company's Whatnot success comes from selling foreign-language Pokemon cards to adult collectors (avg. age 33–38) who view them as an investment.Platform Economics: Whatnot charges shipping directly to the buyer and offers same-day payouts after a seller makes 1,000 sales, significantly improving seller cash flow.Business Evolution: Amazon to Selling on WhatnotAmazon Strategy: Evolved from importing from China to a brand-direct wholesale model.Process: Partner with smaller brands → improve their Amazon marketing → buy wholesale from them.Rationale: As brand sales grow, wholesale orders increase, creating a mutually beneficial relationship.COVID-19 Challenge: A freight company venture faced an 8x increase in shipping costs, creating a $1.1M problem.Resolution: The profitable training business offset the losses, providing a critical lesson in risk management.Whatnot Expansion: The company's first expansion beyond Amazon in 12 years, driven by the belief that live social commerce is a major trend.Whatnot: The Live-Selling PlatformPlatform Concept: A hybrid of QVC, Instagram, and Tinder, focused on live, interactive auctions.Core Functionality:Live Streams: Sellers host live video shows to auction items.Rapid Auctions: Bids are placed via a "swipe right" feature during short (e.g., 5-second) auctions.Buy-It-Now: An option for immediate purchases is also available.Growth & Competition:Revenue: ~$8–11B globally in 2025.Competitors: TikTok (with a new auction platform) and eBay (with eBay Live).Whatnot Case Study: Pokemon CardsNiche: Foreign-language Pokemon cards, chosen for their high value and appeal to adult collectors.Auction Process:A sealed booster pack is shown live.Viewers bid on the pack.The pack is opened live to reveal the cards.The winner receives all cards from the pack.Key Metrics:Sales: >£400k since Oct 2025.Profit Margin: 25–35%.Orders: >60,000 with zero returns, as buyers see the exact product they win.High-Value Finds: One card pulled was worth £800, increasing to >£1,000 after professional grading.Getting Started on WhatnotInvestment: £500–£1,000 for initial stock and setup.Seller Account: Free to create.New Seller Bonus: Whatnot offers cash matches on first-week sales (e.g., £150 bonus for £150 in sales) to attract streamers.Recommended Approach: Use a company entity for Amazon to appear professional to brands; a sole trader is sufficient for Whatnot initially.Next StepsListeners: Visit marketplacesuperheroes.com for free training on the Amazon and Whatnot models.The Next 100 Days Podcast Co-HostsGraham ArrowsmithGraham founded Finely Fettled in 2014 to provide data from The UK High Net Worth Database to marketers targeting affluent and high-net-worth customers. He's the founder of MicroYES, a Partner for MeclabsAI, creating lead generation AI Agents & Workflows and introducing the MeclabsAI Platform. Graham is an inCruises Independent Partner, and is building up interest from people around the world in the World's Largest Travel Membership - inCruises. You can sign up and access 21,000+ cruises, hotels and tours by clicking HEREKevin ApplebyKevin specialises in finance transformation and implementing business change. He's the COO of GrowCFO, which provides both community and CPD-accredited training designed to grow the next generation of finance leaders. You can find Kevin on LinkedIn and at kevinappleby.com