Flip App’s viral referral program turbocharged customer growth

Access chart in Dash.

Customer growth accelerated triple digits at the video based marketplace Flip App in October and November after its referral program went viral on other social media platforms, according to Earnest credit card data. Flip App in its current form launched in 2021 as a video based ecommerce app, but customer growth slowed by mid-2023. In October, Flip App’s customer growth reaccelerated as its referral program went viral, but sales remained below year ago levels according to Earnest data (access chart in Dash). 

Flip App joins an increasingly crowded space of apps that blend entertainment and ecommerce. Whatnot’s livestream platform is popular with second hand and vintage sellers. TikTok Shop and Instagram Shop blend those app’s entertainment platforms with the ability to buy items advertised by influencers. Temu gamified discounts to keep users shopping by driving down prices with additional purchases. 

Despite the growth, Flip App remains a small player in the ecommerce segment compared to other marketplaces and social media platforms. Less than 0.1% of TikTok Shop and Temu shoppers made a purchase on the platform in December (access chart in Dash).