By Jeff Garrett for Numismatic Guaranty Company (NGC) ……
As mentioned in my last article, there were several new developments that unfolded at this year’s Florida United Numismatists (FUN) convention. There was a sudden and unexpected demand for “collector” coins in the $50 to $1,000 range. One of our first wholesale clients purchased more than $100,000 worth of United States coins in that price range. Normally, our first sales concentrate on fresh coins in the $5,000-and-up price points. This year, lower-priced coins were flying off the shelf at setup.
Clearly something new was creating a demand that did not exist the year prior. After some brief research, I figured out that the new demand was being driven by two main sales channels that had been newly created for rare coins.
The first is the apparent success of VaultBox, WitterBrick, and other mystery boxes of rare coins (covered in Part 1, linked above).
The second new sales channel that had developed since last year is the explosion of streaming sales on platforms such as Whatnot, which explains its mission on its website as:
“Whatnot: Buy, Sell, & Go Live – Whatnot is a social marketplace where you can discover some of your favorite products… Explore a world of buying, selling and livestreaming.”
The platform is a bit like eBay, but with a live component. There are tons of different categories, with coins and bullion being one of the most active. A tremendous number of dealers, large and small, have started selling on the new platform. The dealers who have figured out how to make their live shows “entertaining” are doing the best. Coins and entertainment are creating a new demand for numismatics that did not exist a couple of years ago.
The livestreaming on sites such as Whatnot and the mystery box of coins such as VaultBox have also merged in a way. One of the most popular products on the streaming sales platforms is mystery boxes of rare coins. There are many different types, and sellers have made opening mystery boxes an entertaining experience. Their excitement is both contagious and inspirational.
Whatnot and other streaming platforms have created an explosion in demand for low-priced world and ancient coins. Our sales in this category have more than doubled in just the last few months. Sellers are extremely eager to find inexpensive coins with a good story. Anyone new to the hobby would love to hear about and have the chance to own a coin struck by Alexander the Great (we are sold out).
One of the most active sellers on Whatnot has been Bjorn Bergstrom (TraderBea) from Nebraska. He has jumped in with both feet and developed an amazing business in a short time on the platform. We asked Bjorn a few questions for this article:
How did you get started selling coins on Whatnot?
Bjorn Bergstrom: A friend recommended that we try selling on the site. We were not very successful the first few shows, but after hard work, things started to change. We put in an amazing amount of effort to build the channel to where it is today.
It’s really easy to start, even though it seems very hard. You need a smartphone and a lamp and inventory; personality helps. Taking it to the next level is where the real challenge begins, but if you want to build a community, the barrier to entry is very low. Be a positive member of the community and the algorithm works.
Why has the website become popular?
The community is probably the thing that keeps most people active even when they have no money to spend. It’s the social aspect of buying but while remaining anonymous if you want to. Put yourself out there if you want or hide behind a funny username. Fast and fun action with quick auctions or exciting mystery games are the things that keep most buyers coming back.
Why are some sellers, like yourself, more successful on the site?
I guess the best way to explain it is, it’s not what you think it is. You are selling an entertainment product, with a side of coins. We try and keep the content fresh. It is very important to me, even when something is working, to bring a new look to the next show. Every single time.
Is Whatnot growing the coin hobby?
Consider the accessibility for people outside of the hobby to see and feel what it is like to collect something that has tangible value and is super liquid. Pretend you are at a coin show, but you have 250 people willing to spend money all at the same time in front of you. The cross hobby/category customer acquisition is what is most exciting about Whatnot.
Anything else you want to add?
Never anywhere in the world of online business has there been a company quite like Whatnot. It’s not just a platform for selling. It is a community of buyers and sellers who interact on a minute-to-minute basis, 24 hours a day. Access from buyer to seller and seller to buyer has never been more convenient or exciting.
Whatnot’s commitment of resources to help small businesses grow is also key. On a weekly basis we have instant access to Whatnot employees who help provide me the tools and insight to grow sales every week. Since January of last year, our sales have gone up over 500% monthly. The numbers are quite mind-blowing!
The internet transformed the rare coin business about 25 years ago and continues to have a major influence on the hobby. Social media is just one of the most recent developments that has created a spark to grow the hobby.
Luckily, one of the major benefits of social media and numismatics has been the growth [in] younger folks who have discovered coin collecting. These young people are very adept at using these new tools to communicate and explore rare coins.
With the explosion of AI, it will be exciting to see what the next chapter is in the development of our hobby. Stay tuned!
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