What Is Meesho’s Business Model? | Meesho Reselling App Business Explained

meesho business model

What if I told you that doing business is as simple as posting a few product pictures on your social media handles? taking orders from your viewers and passing on the order details to the suppliers and that’s it. The customer gets his products. The seller received his payments and you earn a Commission sound like An easy source of passive income is it? yes, meesho do the same.

That’s exactly how many women across India from Tier 2 and tier 3 cities have started working as resellers. many women who started it as a side business have converted it into a full-time business, and the credit for the success of these woman entrepreneurs. goes to an online platform called Meesho.

Meesho establishes itself as a reselling platform and is also given tough competition to E-Commerce Giants like Flipkart and Amazon. and sure many of you don’t even know about this brand and may not have even heard about it. So what’s so unique about meesho? that you should know about it.

Hi. My name is MD Junaid and today’s blog talk about a seven-year-old startup that is changing the way reselling works in India. how it earns with a 0% Commission policy. what are Meesho’s strategies to disrupt the market? And what do we as marketing and management and business need to learn from meesho,

1. The Start of meesho

lets your home and your craving for your favorite food item. All you have to do is open Zomato and order it right. well, that was the same Idea behind Fashnear, the first version of meesho the founders wanted to create an online platform for all the local shop owners working in the fashion industry. all the local shop owners could register their stores on this online platform and all local customers could order from it.

They also had this unique process of purchasing when customers could order three products from a seller and choose only one at the time of delivery and return other products the main Idea behind this business is to take all the local shop owners online and creative Zomato for the fashion industry, but there were a few problems with this business model.

The cost of logistics was too high for delivering three products and taking the returned products to the suppliers. The local shop owners were already selling their products online via WhatsApp and now they wanted to explore the country the majority of the sellers on fashnear were women who were working from their homes and delivering products to the local community. And that’s how understanding all the problems and taking constant feedback from customers gave rise to an online platform

2. How meesho Works.

meesho, which was actually derived from the term Meri-E-shop. Fish near was rebranded as a selling platform called meesho. which works on this simple process.

Let’s say that three people A, B, and C person A is a business owner who has registered on meesho and has uploaded pictures of his products with a unique batch number attached to each product person B is a reseller who shares these pictures on a social network by adding a Commission on it.

As soon as person B gets an order. He informs person C that is meesho with all the order details then meesho on behalf of person B. We will collect the orders from person A and deliver them to its customers as the cycle is completed person A gets his payment person B gets the commission and customers get their products.

3. Meesho’s Revenue model.

But wait, how does Meesho earn money while doing all this? If you are still thinking about how meesho is different from Amazon Flipkart. then let me tell you something very interesting every seller on Amazon or Flipkart has to pay a commission ranging from 2 to 20 people depending upon the product.

but on meesho, it’s absolutely free meesho works on a 0% Commission policy. And how is a customer that can help you will come that the latter part of the blog? when it comes to meesho they have three major sources of revenue.

3.1 Ads and Rank push-ups.

Let’s say you as customers search for men’s shirts on meesho. The first few products shown may be sponsored products and meesho charges some amount from the sellers for the sponsored products.

This can help sellers in advertising their products on meesho. Rank their product higher when someone searches about it and increase their customer base. This is a good source of income for meesho. So just like many E-Commerce websites, the best part is sellers only have to pay for these ads only if customers click on the product and view it.

3.2 logistics

meesho’s average order value is less and generally has smaller size packages. which helps them combine many small orders into one and deliver them with the help of third-party logistics. Wish you already charges for delivery from their customers at Outsourcing the services help themselves some money for themselves

3.3 customer data,

Meesho has a lot of data about its customers. What kind of products do they buy? What is the average amount people spend on certain kinds of products which designs of working the most and much other such information? this data is very business owners in taking important decisions regarding future demands and customer preferences and meesho makes a good amount of money by providing this information to business owners with the growing demand for customer data.

many E-Commerce companies have started earning through such sources. Not only this over time meesho has developed from a reselling platform to a direct sales E-Commerce platform. Just like Amazon Flipkart. whats boosts direct sales for meesho is that its Middle-class customers and women who are looking for budget-friendly products and now for the last two years a major source of revenue for meesho.

So is coming from direct sales, which has helped meesho to being the third-largest eCommerce website in India and meesho aim to grow in the direct sales market by being the first choice of women in every Indian household for online shopping and this can be achieved only through marketing

4. Marketing strategy.

when it comes to Meesho’s marketing strategy they have tactfully incorporated women customers and resellers in the advertisements which are their main target audience, they make sure that every advertisement they make has an emotional touch to it. May it be their my story My store campaign when women address with different names,

but often feel that they don’t have any identity of their own and that meesho gives them an identity of a self-made businesswoman. or it may be their ” Sahi-Sahi lagav” campaign where in they depict how Indian customers always bargain. Looking for a budget-friendly product and how meesho does this for customers and provides products at the lowest price possible.

apart from such great marketing campaigns, even the pandemic has helped them in growing many women across India looking for an external source of income turned towards meesho for becoming a reseller at the same time due to lockdown restrictions many people from India across tire 2- 3 cities who wanted to try online shopping for the first time.

5. Feature plans of meesho.

went towards meesho because of its budget-friendly and homely marketing strategy Meesho was already doing great in the fashion industry. via direct sales and reselling. they now wish to explore new areas. They are now gearing up in grocery delivery under its app called farmers, which is now going to be incorporated into its main app and rebranded as meesho superstores which delivers a wide variety of products like Vegetable fish, and other items of daily needs.

Meesho has almost the same strategy when it comes to its superstore when their focus is mainly on budget-friendly and price-conscious customers the main aim behind these changes is to make meesho a go-to app for all the requirements of an Indian household.

They also want to create a habit of online shopping among women of Tier 2 and tier 3 cities in India and make sure that meesho is their preferred choice. meesho is planning many such expansions because they wish to launch their IPO in the first half of 2023. The company already has some big investors like Facebook and SoftBank. It is yet to decide whether to go for a public listing in the Indian market or a SPAC listing in the US market.

6. Learning from meesho.

Meesho has a really interesting story and has some great expansion strategies, so it’s very important for us. Interesting things from meesho your first Idea may not always be the one that will get you the desired success, but constantly learning and innovating will surely give your desired result as we show that perform well as meesho didn’t perform well in local Zomato for the fashion industry,

but it surely performs well as an online platform for all the resellers just like meesho we need to understand, who our target audience is and what exactly do they want. meesho designed its app, product, price, and marketing strategies as per the requirements of middle-class women customers and resellers in the same way.

We need to make changes in our brands as per our target audience and last but not least no matter how young your company is and no matter how big your competitors are. if you have the right product designed for the right set audience and if you wish to keep innovating constantly then no one can stop you from succeeding.

Leave a Reply