PROCUREMENT

Becoming a Billion Dollar Company: How Flip Rewrote the Success of Social Commerce Platforms  

Apr 16, 2024

Social Commerce

Becoming a Billion Dollar Company: How Flip Rewrote the Success of Social Commerce Platforms  

Flip is once again making social commerce platforms headlines. 

The social commerce app has recently received a significant boost in funding from major investors. The sum is so large, it’s making many wonder if Flip is on its way to becoming the next big thing amongst social commerce platforms

The app has been quietly climbing in downloads in the app store for some years now, with millions of users across the world loving its new take on ecommerce. 

What makes Flip so successful in comparison to other social commerce platforms, and will its trajectory continue? 

Read on to find out more. 

WHAT IS FLIP?

Established in 2019, Flip was created with the intention of being the “last honest place on the internet”. 

According to its founder, Noor Agha, Flip is the future of social commerce platforms. The app provides a place for consumers to share honest, unbiased opinions of products. Unlike other social commerce platforms such as TikTok and Instagram, Flip is not filled with sponsored content and brands. Instead, it is fuelled by real people’s real opinions. 

After filling out a short questionnaire when they first download the app, users are able to immediately access thousands of reviews from creators across the world. 

@urfavemillennial

Has anyone tried @Flip Shop ?! #flip #flipshop #socialmediastrategy #tiktokstrategy #socialmediamarketing #flipapp #microinfluencers #microinfluencertips

♬ original sound – Madison Taylor

Creators post 60-second long video reviews of products they themselves have bought. Viewers, in turn, watch these clips and are able to order the products through the shoppable videos and one-click checkouts. There is much less of a divide between user and creator on Flip in comparison to other social commerce platforms, as many users take on the role of both watching and posting. 

For up to 30 days after they post a video, creators are able to earn a profit. Creators can earn $15-25 per 1000 views, plus a commission of 10-40% from brands depending on the category. The platform is free to join for businesses that want to sell on it, but they must handle shipping and provide a portion of their sales to Flip. If brands want to make their reviews more prominent in the app, they can pay Flip to do so.

In order to ensure that all reviews are genuine, Flip immediately bans any creators or brands from the platform if they create paid content.

The result? A community based platform that shuts out the brand led, sponsored noise of other social commerce platforms and instead allows users to access free, informed reviews of the products they are interested in. 

FLIP’S SUCCESS 

Flip has had significant success from its inception. The app received $28 million of Series A funding from Streamlined Ventures in 2021, and was almost instantly popular with consumers. 

Nowadays, Flip has been downloaded around 5 million times, and recently received $144 million in Series C funding. Spearheaded by Streamlined Ventures and supported by a $50 million investment from advertising software firm AppLovin Corp., the funding round brings Flip’s valuation to $1.05 billion. 

On top of this, Streamlined Ventures has recently acquired AppLovin, and inteads to use the marketing platform to drive Flip’s advertising with its personalised AI-powered advertising tool, AXON technology. Flip’s creators believe that AXON will allow consumers to find more products to purchase, and brands will be armed to drive far more sales. 

With such major investments, it’s clear that the industry believes Flip has what it takes to make it. Yet, why? Why are investors so convinced Flip is going to make it big when so many other social commerce platforms have failed to make a splash?  

Ultimately, it comes down to what consumers really want. 

WHY DOES FLIP WHEN OTHER SOCIAL COMMERCE PLATFORMS DON’T? 

Flip’s success lies in the way it hinges itself on a single, vital, consumer truth; people want honest opinions. 

Consumers have changed the way that they make purchasing decisions. We no longer hop on Google to see what others are saying about a product, or ask our friends and family. Instead, we turn to TikTok and Instagram. We scroll through endless videos, trying to find a genuine review of the product we are interested in. 

Brands have made this task increasingly difficult. Sponsored videos are popping up left, right and centre, with influencers preaching about the brilliance of a product that they most likely have not even tried. 

That’s where Flip comes in. It provides a space for consumers to speak to other, real life people who have tried the products they are interested in. It bans sponsored content and demands honesty from all its users. 

All in all, Flip strategically improves on TikTok Shop and other less successful ecommerce sites at every turn. 

Unlike platforms such as TikTok and Temu, Flip strives to ensure that it only features genuine products. A large concern in consumers when it comes to online shopping through ecommerce platforms, is that they will be sold a counterfeit product. This is a large issue on TikTok shop, which harbours millions of products, and countless fake ones. 

@paigeconstantino

♬ original sound – paigecons🎀

Moreover, Flip’s dedication to honest reviews from real people is a major game changer in the world of ecommerce. Consumers crave authenticity above all else, and want to trust the reviews they see online. More than 70% of TikTok shoppers have made a purchase after they see a product on their feed; giving these consumers a chance to purchase directly from the video they see, a video that assures them of the quality of the product, is genius. 

For brands, now is the perfect time to get involved on Flip. The app is steadily growing every single day, so jump in now before your brand gets lost in the chaos. Flip is a fantastic way to show off the true quality of your products, and invite your consumers to see a different, influencer-less side of your brand. 

Ultimately, Flip perfectly caters to consumer interests at every turn. It tunes into the current desires for video content, authenticity, and honest reviews. It provides consumers with a place to support each other in their quest for products, and allows genuine brands to meet their audience in new ways. 

It is clear to see why investors are so certain that Flip will succeed. This little app is sure to continue to grow, as more and more users are drawn into its promises of transparency and ease of purchase. 

Yet, will Flip continue to honour its mission and steer clear of branded content? Or, will it be drawn in by the promises of more revenue? 

Only time will tell. 

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

If you want to find industry insights, visit our influencer marketing and social media blogs.

@ Socially Powerful

Author

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Ella Proctor

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