How TikTok helped a collectibles company make $19 million in sales of trading cards, memorabilia, and more

News Room

Matt McGuckin is convinced TikTok will become “the largest shopping mall in history,” and he wants his trading-card and signed-memorabilia company Dappz Sports to be at the forefront of the phenomenon.

McGuckin brought his passion for trading cards and collectibles to social media in late 2019. He began livestreaming on Instagram, then moved over to TikTok when his content found success there.

The pandemic accelerated sales, and since then, McGuckin has made TikTok the focus of his e-commerce efforts. Even when he noticed other brands moving to different apps or platforms dedicated to livestreaming, he stayed on TikTok.

“We realized the amount of eyeballs that are on TikTok are just so much larger than any other platform,” he told Insider. “My mindset the whole time was no matter how big these apps grow, they’ll never be as big as TikTok. They’ll never have as many followers on TikTok. They’ll never have as many active users.”

That decision has proven fruitful, especially since the introduction of TikTok Shop, the platform’s e-commerce solution that allows users to purchase items directly from the app. Dappz Sports has had a years-long relationship with the social-media giant and has been beta testing TikTok Shop since 2022.

“You can have a shop in New York or a shop in Texas,” McGuckin said. “You don’t even have to have a shop. You could be in your mother’s basement creating items and selling them on TikTok. This is just the beginning of TikTok Shop. I believe they’re going to compete with Amazon.”

The main Dappz Sports TikTok account now has 950,000 followers. McGuckin and his team also created five other profiles to be able to serve a wider audience through livestreaming.

The company made $19.4 million in revenue between January 2022 and September 2023. Over $12 million came in 2023 alone. McGuckin declined to share profit numbers, but said the company has “very healthy margins.” (Insider verified this information with documentation Dappz Sports provided.)

Combining livestreaming and short-form content is McGuckin’s key to success

McGuckin said his strategy for sales on TikTok combines livestreaming with short-form content. Dappz Sports usually publishes snippets of livestreams as videos on different accounts, or funny and educational content related to the world of collectibles.

“Creating content that can live online for everyone to have access to and be educated on the market is a big part of what we want to continue to push forward, and make sure that this industry does 3, 4, 5x over the next five years,” McGuckin said.

Short-form content on the profile also has the possibility to go viral, bringing more eyeballs to the livestreams.

Another strategy the company’s been using to increase live viewership is inviting other popular creators or athletes to participate, including Dallas Cowboys linebacker Micah Parsons and former baseball player Bobby Witt. They also will occasionally organize giveaways — and users don’t necessarily have to purchase something to be entered.

‘A true stream has three people running it’

The Dappz Sports ecosystem now counts six accounts focused on livestreaming. McGuckin’s aim is to expand the types of products Dappz sells, and reach 100 streams that are ongoing 24/7.

To reach that goal, McGuckin anticipates a significant personnel growth.

A successful livestream needs three participants, he said:

  • Assistant: They help the breaker sort and sleeve cards. They also start the shipping process by packing orders. Assistants are a key factor to help streamline the process.

  • Stream Manager: They manage the livestream shops, take care of customer service, list products, and manage inventory. They make sure the schedule is flowing smoothly between livestreams, and handle urgent alerts.

So far, Dappz Sports has expanded its headcount to 40 employees, and over half of them work on the livestreaming operations. All the employees live in the Los Angeles area, close to the company’s headquarters on Melrose Avenue, where the livestreams are shot.

“We’re LA based,” McGuckin said. “We’re going to stay here and just continue to grow. We have access to the best talent in the world here.”

Read the full article here

Share this Article
Leave a comment