Meesho is among the top-selling platforms in India, and the benefits Meesho offers are over the top level. This platform offers you the freedom to open your own business online with zero investment and promote your products among millions of traffic. All that's needed is a smartphone to sign up for a Meesho account.
More than 70% of Indian customers from numerous cities in India have accounts and love to buy the products on Meesho. This is because the sellers supply goods directly from the manufacturing area with no mediators. It means the price will be minimal. Let's understand deeply and know which benefits Meesho provides you.
Did you know?
Meesho was founded in 2015, and this platform is India's most rapidly succeeding platform for resellers. This online platform can connect small to even micro-small businesses with a huge customer base. In recent seven years, Meesho achieved remarkable development and is trending on social media platforms like Facebook, Whatsapp and Instagram.
How Does Meesho Work and Help Housewives Start Their Store?
The business model of Meesho is highly supportive for homemakers to start their businesses. Meesho is a marketplace that allows homemakers to set up their stores without prior experience or capital. Usually, these women are housewives in India who cannot start their stores due to a lack of funds.
In response, Meesho's business model provides them with business tools, training, and guidance to succeed in their new business. As of September 30, 2021, Meesho had raised ₹8497 crores from investors, including YC, Facebook, Shunwei Capital and SAIF Partners.
Unlike traditional retail stores, Meesho helps homemakers run an online store without initial capital or inventory. Using Meesho is easy and does not require tax registration or official documents. As a result, homemakers can easily start reselling their goods on Meesho and run their business simultaneously with their day-to-day jobs. This way, they can take a break from their routine and lead a more independent life. Using the Meesho app, homemakers can create a store listing in seconds. They need an active cell phone number, personal details and a store name. This is how the business model of Meesho works.
They can even choose a catchy store name to attract potential customers. Once they have their store listed, they can begin to promote their products on social media. The app also allows users to take orders. In no time, homemakers can earn as much as ₹1,000 a day without any extra work or knowledge.
Also Read: How to Start A Reselling Business In India?
What Is Meesho Revenue Model, and How Did It Start?
You've probably heard of Meesho. The company is an online marketplace that helps micro and small businesses sell through social media. It was founded in December 2015 by Sanjeev Barnwal and Vidit Aatrey, and it quickly became a unicorn in India, raising ₹2317 crores from Softbank.
While social commerce was a hot topic in India at the time, it had problems. There weren't many payment options and a limited supply. Meesho's innovative approach to customer-friendly policies revolutionised the concept.
Meesho sells its products through social media, including Facebook and Instagram. It ships these items directly to the buyer's home, and buyers pay through debit/credit cards or Cash on Delivery. The company's name, Meesho, means 'Meri Shop' in Hindi. It aspires to create an environment where any individual or small business can start selling its products without any upfront investment.
The company's founders started the Meesho social commerce platform in 2015, promising to make Indian women financially independent. They created the platform to help small business owners advertise their products through various social media channels because women were underrepresented in the retail industry.
Meesho is marketed specifically to women who often don't have access to capital. Currently, Meesho is only available in India. Ultimately, Meesho aims to make the internet a more accessible marketplace. Getting started with Meesho is simple, and you need to download the Meesho app or visit the Meesho website and complete a simple form.
Be sure to have your PAN Card and GST ID ready before starting. Upon approval, you'll be assigned a certified account manager who will work with you to grow your business. Then, you're ready to start promoting your products and promoting your business. If you want investment, don't hesitate to look for India's best government loan schemes as the interest rates will be so low.
How Does Meesho Work?
Before you move forward to start a business, your understanding of how Meesho reselling works is important as it provides a platform for resellers and suppliers to sell their products. As a reseller, you can place orders for other companies on Meesho.
In return, you will get a commission on each sale. The resellers' business names and addresses will be visible to customers. This way, you can make a profit without dealing with shipping. You can also earn a commission from reselling other people's products.
As a reseller, you will be able to suggest products to your audience, which means you won't run out of products to sell. Moreover, Meesho's app allows you to add additional margins to your sales. In addition, resellers are usually homemakers from India. You don't need to invest in capital to sell on Meesho. You will also receive guidance on how to run a business online.
Distributors will receive alerts on their phones when potential customers view their stores. The distributors then forward the details on WhatsApp, thereby eliminating the delivery pain.
This method also reduces inventory costs. Because Meesho uses WhatsApp messaging to exchange products, it does not require capital and is more likely to attract female distributors. The goal is to make it easier for all parties to win. The distributors, however, do not have to change their behaviour.
Meesho's referral program is a unique benefit to new users. A friend or family member who signs up for Meesho and purchases a product from Meesho will earn a 40% commission on their first three purchases. The referral code should be entered while signing up on the Meesho app, and the referral can then receive a refund if the product is not as described. The process of referral shopping is incredibly simple.
Meesho's Model and Market Overview
A quick look at Meesho's business model gives you a brief idea of the company. This online marketplace connects suppliers with consumers, and Meesho's reselling model is similar to assisted shopping.
Suppliers sell products to the Meesho reseller, who shares the product within his network, and then delivers the product directly to the customer. This model saves both the supplier and the reseller money on marketing and logistics, and the seller earns a commission.
Meesho is a great example of a social commerce company, but its business model has some serious flaws. The company's high shipping costs are huge, and it relies heavily on its partners' cutting-edge logistics technology.
The company also charges its resellers for the privilege of featuring their products on its website and app. However, the high costs of running the company's platform are offset by the revenue added by the company's cutting-edge logistics technologies. Meesho started in 2015 as a social commerce platform and became a poster boy for the segment last year. At the valuation, Meesho has valued at ₹37,840 crores.
Meesho's Funding Round
Meesho is a community group buying platform that helps online retailers in India. Like DealShare and Citymall, it is a leader-driven business.
Meesho has raised over ₹8497 crores in funding, with its latest funding round of ₹965 crores in August. The IPO is expected to be completed in 2023, and the company plans to file IPO documents in January.
Meesho did not respond to multiple requests for comment on the funding round. Still, the company recently hired a former JPMorgan Chase investment banker, Dhiresh Bansal, to lead its finance team. Dhiresh Bansal's primary role will be to put Meesho's finances in order, which will be necessary to prepare for the company's IPO.
Meesho's funding provides small and medium-sized companies with access to capital. Meesho's revenue model enables startups to get their products to market without having any upfront capital. Because it operates on a three-sided platform, the company offers a commission to resellers who buy products listed on Meesho. The resellers then sell the products to consumers, and Meesho earns a commission from the sales, this is how Meesho reselling works.
Also Read: Best Side Business Ideas for Women in India
The Challenges of the Meesho Business Model
While the business model of Meesho may be revolutionary, it is not without its challenges. It's important to check what challenges you can face while working with Meesho. Here are the biggest ones:
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High Distribution Cost
Meesho financials get a hard hit from distribution costs. It's tough to develop a price-conscious user base and maintain the same without enough money.
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Inconsistent Product Quality
Many Meesho buyers have complained about the quality degradation of merchandise they bought from Meesho.
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Late Delivery
Meesho doesn't stand in the competition regarding delivery time compared to e-commerce giants operating in India. Deliveries are generally late.
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Slow Customer Service
Customer service is another factor Meesho needs to consider and bring betterment. Bad customer service can easily create a negative image of this e-commerce giant.
Conclusion
Meesho has overcome these challenges by creating a value-seeking consumer experience that eliminates the hassles of local shopping. Its TVC celebrates women's unstoppable spirit and ability to face economic and social stigmas. The company leveraged content creators and RVCJ Media to drive awareness of the brand's flagship festival sale event in October. In addition, the company uses moment and meme marketing strategies to amplify its message.
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