This week, we explore where resellers on TikTok Shop and Whatnot are getting their inventory. As independent selling platforms grow, brands are starting to surreptitiously source resellers under NDAs, and new companies are looking to legitimize what can be a shady business.In recent years, a vast network of independent sellers has become a huge part of the fashion retail industry. On platforms like StockX, Goat, Whatnot, TikTok Shop and more, independent sellers are doing millions of dollars of business, often as one-person businesses.
But where is all that inventory coming from? Until now, an even more fragmented network of gray market suppliers, excess stock from brands and retailers, and drop-shipped items from factories have made up the bulk of the inventory one finds on platforms like TikTok Shop and Whanot. Driven by drop culture and sneaker hype, resellers bought up limited supply of highly-hyped products to quickly flip for high margins.
As drop culture and the associated demand have cooled off, resellers have instead shifted to high-volume sales of discounted regular products, as opposed to high-priced limited products, through platforms like Whatnot and TikTok Shop. As the revenue opportunity for these marketplaces increases, new players are looking to formalize the sourcing of inventory for independent sellers.
