Whatnot is a live shopping platform enabling sellers to host real-time auctions and sales. Sellers need to understand how their earnings are calculated, verified, and transferred. This guide details the multi-step process, which is crucial for managing cash flow and forecasting when sale proceeds will arrive.
How the Whatnot Payment Process Begins
The journey from a completed sale to an available balance starts with immediate post-transaction requirements. Once a buyer wins an auction or completes a “Buy It Now” purchase, their payment is secured, but the funds remain in a holding status. The most important action a seller must take is to promptly ship the item and upload valid tracking information. This tracking number serves as the official record that the package has entered the shipping carrier’s system.
The payout clock officially begins ticking once the carrier provides the initial scan of the label, confirming the item is in transit. For most sellers, the funds do not move from the pending status to the available balance until proof of delivery has been received. This process ensures that the buyer has received the product before the seller gains access to the earnings, maintaining a layer of buyer protection.
The Standard Payout Schedule and Timing
The standard Whatnot payout schedule is directly tied to the physical movement of the sold item and its confirmation of arrival. For most sellers in the United States, funds transition to the seller’s available Whatnot balance within approximately four hours after the shipping carrier confirms the item has been delivered to the buyer’s address. Once the delivery scan is registered, a short verification window allows the platform to finalize the transaction before releasing the net earnings.
For sellers located outside of North America, the standard timeline involves an additional settlement period of 96 hours after the sale occurs and the item is delivered. This extended timeframe is put in place to ensure the buyer’s payment has fully settled in the system before the platform securely releases the earnings. Once the funds are available in the Whatnot account balance, the seller must manually initiate a payout request to transfer the money to their external bank account. The subsequent transfer typically takes between one to two business days to complete, though the exact arrival time can extend up to five business days depending on the specific processing times of the seller’s financial institution.
Setting Up and Managing Your Payout Account
Receiving funds requires sellers to establish a connection with a dedicated third-party payment processor, such as Stripe. This partnership handles the secure and compliant transfer of funds from the platform to the seller’s personal bank account. Sellers must complete a one-time setup process by navigating to the “Payment & Payout” section within the seller hub and linking a valid bank account.
Sellers must accurately provide their bank’s routing number and account number to ensure transfers are routed correctly. Any error in this information will cause payout requests to fail and result in delays until the details are corrected. Once the account is linked, the payment processor handles the secure transfer of the available balance upon the seller’s request.
Common Factors That Delay Payouts
Several specific circumstances can prevent earnings from adhering to the standard timeline, often related to security or verification requirements. Whatnot may place a temporary payment hold on earnings for sellers who are new or have an infrequent sales history. These funds are typically held for 48 hours after delivery is confirmed to allow for a review of the transaction and seller activity. A sudden, large increase in sales volume or an unusual selling pattern can also trigger a similar security review, temporarily delaying the release of funds.
Another frequent cause of delay relates to shipping documentation. If a seller uses a shipping method that lacks standard tracking, or if the carrier fails to provide a clear delivery scan, the funds will not be automatically released. The platform must then manually verify the delivery, which can significantly extend the processing time. Payouts can also fail if the linked bank account information is incorrect or if the financial institution rejects the transfer.
Understanding Whatnot Fees and Deductions
Whatnot automatically deducts two primary types of fees from every sale before the net earnings are released to the seller’s account balance. The first is the Whatnot commission fee, which is a percentage taken as the platform’s cut for providing the marketplace and services. This commission is generally 8% of the final sale price for most product categories, though specialized categories like Coins & Money may have a reduced rate of 4%.
The second deduction is the payment processing fee, which covers the cost charged by the third-party processor for handling the financial transaction. This fee is calculated as a percentage of the total order value, which includes the item price, shipping costs, and any buyer-paid tax, plus a small flat fee per transaction. A common structure for this processing fee is 2.9% of the total transaction amount plus $0.30 per order. These two fees are subtracted automatically, meaning the amount that becomes available in the seller’s Whatnot balance is the final net profit from the sale.