Meesho Business Model: Understanding the Unique Reselling Concept

In recent years, the rise of e-commerce has enabled millions of people to start their own businesses from the comfort of their homes. One Indian startup that has been at the forefront of this revolution is Meesho. Founded in 2015 by two friends, Vidit Aatrey and Sanjeev Barnwal, Meesho has become a household name in India with over 15 million resellers on its platform. In this article, we will take a closer look at the Meesho business model, how it works, and why it has been so successful.

Table of Contents

  1. Introduction
  2. What is Meesho?
  3. How does Meesho work?
  4. The Meesho reseller community
  5. Meesho’s revenue model
  6. Meesho’s funding and growth
  7. Meesho’s impact on the Indian economy
  8. Meesho vs traditional retail models
  9. Meesho’s challenges and competition
  10. Meesho’s future prospects
  11. Conclusion
  12. FAQs

1. Introduction

Meesho is a Bangalore-based startup that has revolutionized the reselling industry in India. Its platform enables anyone with a smartphone and internet connection to start their own online business without any investment. Meesho has disrupted traditional retail models by creating a network of resellers who use social media platforms like WhatsApp, Facebook, and Instagram to sell products to their friends and family.

2. What is Meesho?

Meesho is a social commerce platform that connects manufacturers and suppliers with resellers. The platform has a wide range of products, including clothing, accessories, electronics, and home decor. Resellers on Meesho can browse through the catalog of products, share them with their contacts on social media, and earn a commission on every sale they make. Meesho takes care of everything else, from sourcing the products to shipping them to the customers.

3. How does Meesho work?

Meesho works on a simple principle – resellers use social media to sell products to their contacts, and Meesho takes care of the rest. Here’s how it works:

  • A reseller signs up on Meesho and creates their online store.
  • They browse through the catalog of products and choose the ones they want to sell.
  • They share the product details with their contacts on social media platforms like WhatsApp, Facebook, and Instagram.
  • If someone is interested in buying the product, they place an order on the reseller’s online store.
  • The reseller then places the order on Meesho’s platform and pays for it using their own money.
  • Meesho ships the product directly to the customer and handles all the logistics.
  • Once the product is delivered, the reseller receives their commission in their Meesho account, which they can transfer to their bank account.

4. The Meesho reseller community

Meesho’s success can be attributed to its strong and growing reseller community. The platform has over 15 million resellers, the majority of whom are women from tier 2 and tier 3 cities in India. Meesho has created an ecosystem that empowers these women to start their own businesses and become financially independent. The resellers on Meesho have access to a wide range of products, marketing materials, and training resources that help them grow their businesses.

5. Meesho’s revenue model

Meesho’s revenue model is based on a commission-based system. The platform takes a commission on every sale made by a reseller. The commission rates vary depending on the product category, but typically range from 10-30%. Meesho also charges a fee for shipping and handling, which is deducted from the reseller’s commission. In addition, Meesho has started offering value-added services like credit and insurance to resellers, which will help generate additional revenue for the platform.

6. Meesho’s funding and growth

Meesho has raised over $400 million in funding from some of the world’s top investors, including Facebook, SoftBank, and Sequoia Capital. The startup has grown rapidly since its inception and is now valued at over $2 billion. Meesho’s user base has grown by 5x in the last two years, and the company is expanding its presence in new markets like Indonesia.

7. Meesho’s impact on the Indian economy

Meesho has had a significant impact on the Indian economy by creating jobs and driving entrepreneurship. The platform has enabled millions of people, especially women, to start their own businesses and become financially independent. Meesho has also created a new channel for manufacturers and suppliers to reach customers directly, bypassing traditional retail models.

8. Meesho vs traditional retail models

Meesho’s business model is significantly different from traditional retail models. Meesho relies on a network of resellers who use social media to sell products, whereas traditional retailers have their own physical stores and employ sales staff. Meesho’s model is more cost-effective and scalable, as it does not require any physical infrastructure. However, traditional retailers still have a significant advantage in terms of brand recognition and customer loyalty.

9. Meesho’s challenges and competition

Meesho faces several challenges and competition in the market. The social commerce space is highly competitive, with several players like Shop101, GlowRoad, and Bulbul competing for market share. Meesho also faces regulatory challenges, as the Indian government has been tightening regulations around e-commerce platforms. In addition, Meesho’s success depends heavily on the reseller community, which can be fickle and difficult to manage.

10. Meesho’s future prospects

Meesho’s future prospects look bright, as the platform continues to grow rapidly and expand into new markets. The startup has also started offering value-added services like credit and insurance, which will help generate additional revenue. Meesho’s founders have stated that they aim to create a “social distribution network” that empowers millions of people to start their own businesses and become entrepreneurs.

11. Conclusion

Meesho is a shining example of how technology can be leveraged to create social and economic impact. The platform has enabled millions of people, especially women, to start their own businesses and become financially independent. Meesho’s success has also demonstrated the potential of social commerce as a new distribution channel for manufacturers and suppliers. While Meesho faces several challenges and competition, its future prospects look bright, and the platform is poised to continue driving entrepreneurship and innovation in the Indian economy.

12. FAQs

  1. How do I become a reseller on Meesho?
  • You can sign up on Meesho’s website or mobile app and create your online store.
  1. What kind of products can I sell on Meesho?
  • Meesho has a wide range of products, including clothing, accessories, electronics, and home decor.
  1. How much commission does Meesho take?
  • Meesho takes a commission on every sale made by a reseller. The commission rates vary depending on the product category, but typically range from 10-30%.
  1. Can I transfer my Meesho earnings to my bank account?
  • Yes, you can transfer your Meesho earnings to your bank account or other digital wallets like Paytm or Google Pay.
  1. Is Meesho available in countries other than India?
  • Currently, Meesho is only available in India, but the startup has plans to expand into new markets like Indonesia.

About the author

lavish lexicon

Welcome to my webpage. I'm a college student, trader, and startup enthusiast by the name of Varun Raj.

I always want to learn new things and broaden my knowledge as a student. As I think that education is the key to success, I'm always looking for new chances to advance my knowledge and abilities.

As a trader, I've learned a lot about the business and financial worlds. I like to research market trends and make calculated choices that advance my financial objectives. My trading experiences have taught me the value of patience, discipline, and risk management.

Gaining knowledge about startups is one of my biggest passions. I find it fascinating how successful startup businesses are made possible by the creative thinking and entrepreneurism of their founders. In order to understand what makes successful startups successful, I am always researching their business models and examining their operational plans.

I give information about business lessons, startup lessons, and well-known companies' business models on my page. To help people succeed in their own entrepreneurial endeavours, it is my intention to share insightful information. I want my writing to encourage you to think creatively and take calculated chances in order to achieve your goals.

I appreciate you visiting my website, and I am eager to educate and enlighten you.

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2 Comments

  • The ability to communicate directly with sellers through the messaging feature is a convenient feature.

  • I’m impressed by the quality of this article. It’s evident that the author is knowledgeable and has a deep understanding of the subject matter. The article is well-researched, and the inclusion of relevant examples and statistics adds credibility. Well done!

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