Business Model of Meesho | How Meesho Earns Money

Business Model of Meesho | How Meesho Earns Money

Meesho is a social commerce platform in India that allows users to resell products through their social networks. Vidit Aatrey and Sanjeev Barnwal, both IIT Delhi graduates, founded it in 2015.

About Meesho – Company Details

Meesho is an India-based social commerce platform founded in December 2015 by two IIT Delhi graduates (Vidit Aatrey and Sanjeev Barnwal). The platform enables small businesses and individuals to launch online stores through social media platforms such as WhatsApp, Facebook, and Instagram.

Meesho Business Model

Meesho's Business Model is similar to that of any other e-commerce company. Meesho earns money in a variety of ways, including the following:

Commission

Meesho earns money from the commissions they charge sellers. When a reseller sells a product on the Meesho platform, the seller of that product will be charged a 10-20% commission. The commission earned model is similar to e-commerce platforms such as Amazon, Flipkart, and others.

Note: Commission is not charged to individual users (Resellers) but to registered businesses (Sellers) who sell goods/products through the platform.

Rank Push

The number of sellers on the Meesho platform is steadily increasing. Meesho earns money from sellers who want their products to appear at the top of the product page. It can provide an additional revenue stream.

Selling of Data

As we all know, data is the new oil in today's world, and data will undoubtedly add a revenue stream to Meesho. Meesho did not violate any of the policies governing privacy. They can only sell data that does not violate any privacy concerns.

Logistics

Meesho accepts the high delivery charges and is working hard to reduce them effectively. Meesho can increase its revenue by utilizing logistics technologies.

How Meesho Works

Meesho is a social e-commerce startup that helps customers get cheaper prices on products such as apparel, electronics, and jewelry. Over 70% of customers are from Tier 2/3+ cities. These customers are generally price-conscious, but they are willing to pay a premium for high-quality goods.

Resellers push the products listed by sellers or suppliers, allowing the Meesho model to scale quickly.

Consider the reseller to be an affiliate marketer who assists suppliers in finding buyers for their products in exchange for a commission. These resellers are typically housewives or fashion influencers who run WhatsApp and Facebook groups with hundreds of potential buyers.

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