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Whatnot has rapidly expanded from its initial focus on collectible items like Funko Pops to a diverse marketplace offering hundreds of categories, including trading cards and fashion. Armand Wilson highlights the shift in strategy that occurred when the founders recognized the potential of live commerce after observing the engaging sales methods of their sellers. This pivot enabled the platform to become a thriving marketplace where small businesses and creators could build sustainable livelihoods around their passions. The platform's success is attributed to its ability to cater to specific community needs while also scaling operations effectively across various product categories.