The Whatnot platform has announced a new commission structure that could significantly impact sellers’ unit economics. The essence is simple: the more you sell, the less you pay. This is not charity, but a clear calculation aimed at retaining and motivating large players. Understanding what a profitable CPM is becomes key for sellers on this platform.
New Whatnot rates: counting the cash
Now, sellers who achieve monthly sales of $15,000 receive a commission reduction. The rate will continue to drop if sales exceed $250,000. For top sellers, Whatnot claims a possible commission reduction to 3%. This is presented as “the lowest commissions in the industry.”
“Our sellers made this possible. The businesses you’ve built have brought more buyers, products, and communities to Whatnot,” Whatnot said in a blog post. — “As the marketplace expands, we’ve found new ways to support what sellers are building here. Lower commissions, built into how Whatnot works, rather than offered as a temporary promotion, are the next step.”
How does it work in practice?
- Sales from $15,000 per month: commission reduction.
- Sales from $250,000 per month: further reduction.
- Top sellers: commission up to 3%.
A profitable CPM for large players is obvious. The higher the turnover, the lower the percentage of deductions, which directly increases profitability. This is a classic example where a platform stimulates growth by offering more favorable conditions for those who already generate significant revenue.
Whatnot: facts and figures
Whatnot positions itself as a pioneer in e-commerce, combining second-hand sales and live streaming. Facts:
- In 2025, the platform generated $8 billion in Gross Merchandise Value (GMV).
- Attracts 650,000 new users weekly.
- Raised $545 million in a Series G round at a valuation of $20 billion.
These figures show that the platform has a solid margin of safety and can afford to invest in seller loyalty by reducing commissions. The goal is not altruism, but strategic volume growth and retention of market leaders. This is a kind of budget alternative to seeding for the platform, motivating sellers to independently increase traffic and sales.
Seller motivation: Arkollab case study
As an example, Whatnot cites the case of seller Arkollab, who participated in the pilot program of the new rates and doubled their monthly sales. This confirms that commission reductions work as a strong incentive. For the platform, this is a way to provide a cheap hypothesis test and confirm the effectiveness of the new model.
Not just for whales: a chance for “small” players
Although the new terms primarily benefit large sellers, Whatnot states that almost 20% of sellers who achieved $15,000 in sales over four weeks were selling less than $5,000 during the same period six months ago. This indicates growth potential for everyone. If your CPM is cheaper than 50 rubles and you show growth, then this could be your path to more favorable conditions.
Frequently Asked Questions
What CPM should be considered profitable?
A profitable CPM is one that ensures positive unit economics. In Whatnot’s case, a commission reduction to 3% means that for the seller, every dollar of sales brings more net profit, making the CPM profitable at high volume.
Is AI worth it, and what’s cheaper: a banner or a blogger?
The question of the cost of uniqueizing one video or generating 100 AI videos is not directly related to Whatnot’s commissions, but it is important for a general understanding of content costs. In the context of Whatnot, where live content dominates, investments in producing quality streams may be more effective than mass production of AI videos for other platforms. What’s cheaper, a banner or a blogger? On Whatnot, the blogger is the seller, and their effectiveness directly affects the commission size. The commission reduction makes the “blogger” (seller) on the platform more profitable.
How will the new rates affect the cost of publishing 500 videos?
If we are talking about publishing 500 streams or short videos on Whatnot, then upon reaching high sales volumes, the cost of publishing 500 videos will indirectly decrease due to the reduction in the commission percentage from each sale. This makes the platform more attractive for those who are ready for intensive work.
Conclusion: cash matters
Whatnot’s new commission structure is not just about discounts, but a clear calculation for business scaling. For sellers, this is a direct incentive to increase volumes to get low commissions and increase net profit. For the platform, this is a way to retain and motivate key players, ensuring stable GMV growth. If you work on Whatnot, it’s time to recalculate your unit economics and understand how the new terms can increase your cash. Start streaming more to get your profitable CPM.
