Meesho is the leading social E-Commerce tycoon in India. Meesho is a tough competitor to Flipkart and Amazon, pushing them back in sales within a short span of its evolution. The Meesho app is the most common app installed on mobiles.

Meesho has revolutionized Indian E-Commerce and has led thousands of entrepreneurs to grow. Meesho has contributed to the flow of the Indian Economy by empowering women, and small start-ups without investment. Meesho’s journey is groundbreaking with 18 million registered users. The company of value $ 4.9 billion has extended its empire to all corners of India.

The special quality of Meesho is that it equips resellers to sell products on this platform through their social accounts. In the following blog let’s dig in deep to know more about Meesho.

Why do people incline Meesho?

Meesho started its functioning in December 2015 with its headquarters stationed in Bangalore, India. The main idea that led the founders Vidit Aatrey and Sanjeev Barnwal towards Meesho, was to give a platform for resellers to portray their products with zero investment. The duo has made the E-Commerce Business Model to reap a profit of $689 million in 2023.

The success reflected leaving the rivals awestruck when the app was downloaded 134 million times in the same year. An incredible victory was achieved because the app provides a user-friendly interface. The app displays products from all regions and small cities. The pricing strategy focuses on allowing all people to procure the items at reasonable prices.

Meesho is the gateway for more than 600,000 small businesses to project their business online and transform lives. Ordinary people have now started to gain a clear insight into business dealings. Women are ready to learn and showcase their crafts, and customary products online irrespective of their location through Meesho.

The cost-conscious shopper’s real-time destination is Meesho since all ranges and all categories are marketed.

How does the Meesho Business Model work?

Meesho’s business model primarily aims to collaborate all benefits of individual social e-commerce business models and integrate them into one platform to reap benefits. The business model in Meesho is the outcome of drop shipping, social selling, and traditional E-Commerce.

The terms are catchy and seem similar right, but all business model techniques are unique.

A seller who has stock loaded, owns a brand, and is ready to project and multiply his business, wants a huge customer base and secure business model then he can trust Meesho.

The basic Business model of Meesho orients the business owner to display all his catalogs with the price he quotes on the app. Customers who shop can buy products and get them delivered from the seller.

The business concern is responsible for product shipping and delivery. Meesho just acts as a gateway between the seller and buyer in social selling.

Dropshipping works with slight changes to social selling, here the owners don’t procure stock beforehand, they display products that are to people’s preference and are hot selling.

If a customer wants to purchase a product and place an order the drop-selling business model facilitates the Meesho app to forward the request to store owners and handles the rest of the transaction.

Marketing and Branding are done by Meesho while sales are handled by retailers or entrepreneurs. Customers have to order their requests through Meesho, the order processing follows any one of the above business models.

Business Strategies behind Meesho

Meesho was initially operating under the name Fashnear, the company proceeded to the next level by allowing sellers with their Facebook accounts to log into Meesho. This integration led to Meesho being born with the enhanced Business model.

Meesho was designed with the motto to make shoppers shop at a single destination. Meesho exhibits a wide variety of products from clothing, accessories, electric appliances, stationeries, home decor, and so on.

Meesho is in touch with manufacturers, direct suppliers, and wholesale dealers so they can trade products with the brand name at a very low price with no intermediates involved. This working model of Meesho allows it to handle products at a price less than the market price.

The deal to grab products at affordable prices has improved the lifestyle of commoners introducing them to trends and style.

Meesho business model integrates a network of wholesale suppliers. If a customer downloads the app and logins to shop, the first marketing technique Meesho’s business model throws is the user is given a huge discount on the first order.

New users are delighted by this offer and are happy to embrace more offers in their consecutive shopping.

There is no stone left unturned by Meesho’s Business Model to earn goodwill from customers. Meesho does not set any minimum threshold for the quantity and purchase amount to buy products.

If a customer adds one item to the shopping cart the retailer sets a minimum amount for free shipping so this induces an interest to shop more. This business model focuses on selling more products.

The added benefit of Meesho’s business model is it supports any mode of cash transfer along with cash on delivery. Commoners and people who do not avail of any net banking widely prefer this COD and this adds to the success of the Meesho Business model.

The customer is intimated about the number of days it takes to ship the product when the order is placed by the customer. Meesho has one distinctive feature that sets it apart from its competitors.

The 7-day refund policy allows the customers to return the product as received and get a total refund. The customers must ensure that the quality of the product is retained till return.

Marketing Strategies of Meesho

Meesho has pushed away many shopping apps and is continuously holding on to its first position with its insight and distinct marketing strategies.

Target marketing

The feminist strategies imposed by Meesho to support all women, especially in rural areas have a great fan base. Women entrepreneurs are the main targets of Meesho. They strive to make women financially independent and give them the confidence to work as individuals.

If we study the business model of Meesho we get to know that resellers are the main customers. Meesho targets women to do reselling with no investment and operate sales via social networks. Minimal time resources are sufficient for women to operate under Meesho from their homes. Women’s Empowerment along with its growth is the success of Meesho.

Social media marketing

Digital presence is the base to establish any business in the current era and a trend to entertain customers. The resellers involved with the Meesho business model work with strong principles to organize camps, collaborate with fellow business units, and connect with customers through posts.

They work for brand promotion by announcing frequent discounts, deals, and offers. In recent days reels have been the trending approach to market products. Influencers who have millions of followers are also involved in promoting products.

The time people spend on social media is too much, and they wish to dedicate a portion of it to shopping. Such effects are used as tools for marketing by Meesho.

Marketing by influencers

Influencers are people who gain fame online through their videos. Meesho allows influencers to showcase their products. The influencers have a huge fan base. Their promotional strategies are very understandable and liked by people.

New products can also be launched using influencers. Each influencer has millions of followers. Just imagine the reach of marketing products using influencers.

Advertisements on YouTube and Facebook

Social media platform like YouTube plays videos of people choice. Meesho promotes products as Ads when the video plays. The users get attracted to the content and a single click can redirect them directly to the Meesho App.

The traffic of the app increases and the user spends at least a minimum of 3.4 minutes running through the app. The same is the working principle of Facebook videos. The customer range in both platforms is relatively very high, which means many customers view the products.

Low commission

The COVID-19 pandemic gave Meesho an interesting idea for marketing. Meesho decided to reduce its commission to as low as 1%. People who found it difficult to make ends meet took over the bait of Meesho and showed interest in reselling.

The site was loaded with many resellers looking for platforms to project their products. The marketing strategy was of great help during the pandemic.

How Meesho Earn its Revenue?

Meesho had the only idea to “Socialize Shopping” when it started its venture. As days rolled on it was looking for something different to show its unique self. Noteworthy things about the Meesho Business Model are

Receives no commission on product margins
Unlike other apps, it does not charge penalties to resellers for late shipping or order cancellation.
Gives resellers full freedom to display their products without charges.

While other apps charge businesses with every possible fee Meesho gives full-term operating luxury to resellers. Then how does Meesho earn money? An interesting query is it not? Let’s find the answer.

The charge varies depending on the product, for common products, the commission fee is less and for best sellers the commission is high. If a customer returns a purchased product and the reason specified is the seller’s fault then the seller has to pay a large penalty.

The weight of the product and the distance between seller and buyer are considered to calculate the shipping cost. The distance between the buyer and seller may vary as local, regional, or national. The longer shipping distance means a high cost.

Meesho business model makes earning from shipping cost of each product. Meesho has to distribute a portion of the shipping cost to the shipping partner. The most important point to notice is that though the product is marketed along with a free delivery caption a hidden charge for shipping is originally added to the selling price. The free delivery offer is to attract customers and improve selling.

The sellers have to pay a penalty fee if they don’t abide by the terms of the agreement initially signed. If the seller delays delivery and does not keep his word then he is charged 2.5% of the product value daily. Meesho earns a hefty sum from the mistakes of the resellers.

The Meesho Business model is designed to make revenue from Advertisements. When a user enters the product category to search, the filtered preferred list is displayed.

Along with that many pop-ups get to be seen which distracts and promotes new products. Every click to advertise products falls as money in the pockets of Meesho. In addition to the above revenue models, this is a reliable source. Resellers are assured about the customer base Meesho’s business model promotes so the Ads are a well-defined certain income for Meesho.

Everyone must be familiar with the term “Float Money”. The Meesho business model follows a system to repay the entrepreneurs, suppliers, and resellers with a time interval of 10 days.

The amount in Meesho’s account takes time to be credited to the other end and acts as floating money. The sum is with many zeros. Meesho can invest this amount on other platforms and earn money as returns or interest.

Meesho has made a revenue of $689 million in 2023 which is 33% more than the previous financial year. The above features have all been the reason for this massive blast.

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Future of Meesho

The innovative strategies and market dynamics of Meesho have given the business world the idea and visualization of technology to reduce gaps and promote opportunities. The success of Meesho without any competitors and standing first in its journey is the seamless efforts of its human resources.

Meesho plans to multiply its employee resources and pave employment supporting talents. Meesho has a future vision to extend its base with 100 million individual businesses. All that is required to be a part of Meesho is a smartphone with an internet connection and access to social media platforms.

The minimum requirements are simple and make it a sturdy business option. Meesho wants to extend its ideas apart from fashion, clothing, accessories, and appliances to grocery and perishable goods. Meesho has the vision to integrate financial services with shopping and enable shopping without worrying about budget.

Meesho has set a strong position in the E-Commerce field. It started from scratch and today it has 14 crore customers throughout the country. In the current E-commerce field, Meesho seems promising with no competitors and staying unique with its appealing business model. The future of Meesho ahead seems bright and innovative.

Frequently Asked Questions

1. What is special about Meesho?

Meesho works on a zero commission, zero penalty model which makes the resellers earn a good profit margin.

2. what sells best on Meesho?

Meesho has significant sales figures selling Fashion and Lifestyle products which also include accessories and beauty items. The next on the list are home essentials and electronics.

3. what to do if there is a problem during the transaction in Meesho?

Without any panic, the buyers can contact the customer support center available 24/7. The team ensures a smooth transaction.

4. How many delivery attempts does Meesho make?

Meesho has a personalized delivery team, which makes three attempts to reach customer availability, if not the product is returned to the seller. Meesho guarantees safe delivery to both sellers and buyers.

5. Is Meesho a safe app?

Meesho is a very safe app selling products from verified users and is very cautious about fraud and scams. The payment transaction is also very secure.

6. How does Meesho help resellers?

Meesho is the only app that offers shipping at low costs. It manages packaging, shipping, and returns on behalf of sellers. It reduces the burden of workload and helps them to promote products.

The above blog gave a clear insight into Meesho. If readers have any ideas related to reselling and if you are looking to develop a well-established platform like Meesho the one-spot destination is SMARTHER.

Just like Meesho the company aims to provide all services at affordable prices and is listed as a top developer in their customer’s minds. SMARTHER is an influential concern with customers across many cities and regions. We have been worked on several E-Commerce applications and is loaded with ideas and technology for the upcoming projects of reputed clients.