Meesho is a successful, well-known, and self-prepared eCommerce platform in India. Meesho is well-liked by Indian customers.
Every day, thousands of people visit this website. The company was founded in December 2015 by Vidit Aatrey and Sanjeev Barnwal, both IIT Delhi graduates. Its headquarters are located in Bangalore, Karnataka.
Meesho means Meri Shop. It is India’s newest unicorn and operates as an online reselling marketplace. It enables small businesses to engage with and sell via social media sites.
The main draw of Meesho is the ability to start an online business without any investment and while sitting at home.
Meesho Business Model
Vidit Aatrey, the founder of Meesho, wanted to provide a place to buy for people who were having difficulty starting a business.
Meesho’s business model is centered on allowing women, housewives, and some men to create a free online shop on Facebook, WhatsApp, and Instagram. The initial investment is the most significant barrier to entry for average small business entrepreneurs in India.
As a result of this difficulty, they devised the concept of Meesho, which he launched in December 2015.
Meesho’s current business model includes a network of over a million dealers in over 700 locations across India. The 17 million Meesho Suppliers who contribute their time and products are now the driving force behind all of these accomplishments.
As a result, their products and brands are gaining popularity. The company earned INR 307 crore in FY20, up from INR 80 crore in FY19.
How Does Meesho Work?
- Meesho collaborates with the product’s creator and seller to list the product on the Meesho platform. They reach an agreement with the sellers and list the products.
- The reseller is attracted by the company’s advertising and promotion. The Reseller then uses Meesho’s services to resell the goods on social media platforms such as Facebook, Instagram, Whatsapp, and others.
- When a customer decides to purchase an item, he or she places an order with the reseller. Following the receipt of the order, the reseller applies their profit rate on that specific item to it.
- The product is finally delivered to the customer. Meesho deposits the profit to the reseller’s account after receiving payment from the customer.
This is how Meesho operates.
Meesho currently employs over 750 people and has over 20 million resellers as customers.
Meesho’s business model operates in the same manner as every other eCommerce service provider’s business model. Let’s go over Meesho’s sales funnels to better understand their business model and how it generates revenue:
Meesho makes money through seller commissions. Sellers pay the firm a commission ranging from 10% to 20%, depending on the product.
Meesho penalizes sellers who fail to deliver the merchandise. It also provides a good source of income for Meesho.
Meesho creates a distribution system and makes a fortune through logistics. Meesho’s revenue from shipping will be Rs.36 crore in 2019.
Meesho significantly boosts its revenue by featuring them on its app and website as the number of dealers grows by the day. Vendors who want to advertise their products on Meesho must pay a significant fee.
Big data is extremely valuable. Meesho collects a large amount of data, some of which it sells to its partners so that they can use it for their own and their customers’ benefit. Meesho, on the other hand, makes every effort to protect its customers’ personal information and other sensitive information.
Why is Meesho so Successful?
Vidit Aatrey and Sanjeev Barnwal founded Meesho in December 2015. Even though they were not making a profit at the time, their start-up was gaining exposure day by day.
Their main goal was to provide people with a place where women, students, and even men could earn money while staying at home with no investment. Meesho is now one of India’s largest reselling platforms, with a revenue of Rs 300 crore.
Meesho’s success can be attributed to the efforts of its founders, Vidit Aatrey and Sanjeev Barnwal. Meesho’s genuine products and services have captured the attention of thousands of people.
Many people now have legitimate opportunities to earn money from home. Meesho’s excellent marketing and advertising strategies are also a factor in its success.
Meesho is one of several Indian startups that have thrived due to their effective audience targeting and marketing strategies. The simplest way to understand why Meesho has become so popular is to create an account and use the platform for yourself.
Read More: Global Business News