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Home Business

Learn about Meesho Business Model

MariaJames by MariaJames
7 months ago
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Meesho is an Indian social commerce platform that allows users to resell products via their social networks. It was founded by Vidit Aatrey, a graduate of IIT Delhi, and Sanjeev Barwal in 2015.

About Meesho- Company Details

Meesho, a India-based social shopping platform was founded by two IIT Delhi alumni ( Vidit Aatrey and Sanjeev Barwal ). This platform allows individuals and small businesses to open online shops through social media platforms like Instagram, Facebook, and WhatsApp.

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Meesho Business Model

Meesho’s Business Model looks similar to any other ecommerce company. Meesho makes money in many ways.

Commission

People ask that “How Meesho earns money?” Answer is that Meesho makes money by charging sellers commissions. A Meesho reseller will earn a 10%-20% commission when they sell a product through the platform. The commission earned model is very similar to other e-commerce platforms like Amazon and Flipkart.

Notification: Commission is not charged to individuals (Resellers), but to registered businesses (“Sellers”) who sell products/goods via the platform.

Rank Push

The number of sellers using the Meesho platform keeps growing. Meesho makes money from sellers who wish their products to be at the top of the product pages. This can bring in additional revenue.

Data Selling

Data is the new oil. This will undoubtedly bring Meesho a stream of revenue. Meesho has not violated any privacy policies. They cannot sell any data that violates privacy concerns.

Logistics

Meesho is willing to pay the delivery fees and is trying to lower them. Meesho can use logistics technology to increase its revenue.

How Meesho Works

Meesho, a social-e-commerce startup that helps customers find lower prices on apparel, electronics, jewelry, and other products, is an . More than 70% of customers come from Tier 2/3+ countries. They are usually price-conscious but are willing to pay more for higher-quality goods.

The Meesho Business model can scale quickly because resellers promote the products that are listed by suppliers or sellers.

The reseller is an affiliate marketer who helps suppliers find buyers for their products in return for a commission. These resellers are often housewives and fashion influencers who manage WhatsApp and Facebook groups that have hundreds of potential buyers.

These resellers have already earned the trust and loyalty of their group members, which they use in order to acquire customers.

Also Read: Plastic Packaging Market Analysis 2022-2027, Industry Size, Share, Trends and Forecast

How does Meesho fit in this seller-reseller model?

The reseller was responsible for handling things such as product packaging, delivery and payments.

Meesho made it easy for resellers to distribute product products.

The app’s digital catalogue allows resellers to easily recommend products for their customers. This means that even the most successful resellers will never run out products to sell.

A buyer can express interest in a product by simply entering his/her address and adding his/her margin. The product will then be shipped from the seller’s place by Meesho logistic partners.

Most Meesho resellers in India are Indian housewives looking to make money or start their own businesses but are unable to because of lack of funds. Meesho offers these housewives all the resources, tools, and guidance that they need to start their own online business right from their homes.

Meesho Funding and Valuation

It had raised $1.1 billion as of September 30, 2021. Among the venture capital firms contributing to the fund were YC and Facebook.

According to reports, Meesho will raise more than $100m in its next round of funding. The new round will be managed by two existing and new investors. The reports state that Prosus and Softbank will be the main investors in this new round of funding. If successful, it will mark the company’s second round of fundraising and increase its valuation by anywhere from $3.5 billion to $4 billion.

Fidelity Management led the round. Eduardo Saverin, from B Capital Group, managed the B Capital Group. This massive round opened the door to the Meesho round. The company’s valuation grew more than 60% from six months ago to $4.9 billion. Softbank was the lead in the previous round. It helped the company raise approximately $300 million and attain unicorn status.

How do you sell on Meesho Register as a Meesho seller

Here is a step-by-step guide to how you can sell on Meesho.

Register Your Account

Registering on the Meesho Supplier Panel is the first step to starting a business. This requires a GSTIN and PAN card. After registering as supplier, navigate to the Meesho supplier website. Log in with your email address.

List your Products

Once you have completed the registration process on Meesho Seller Panel the next step will be to add products to the catalogs that you wish to sell. If you are looking to increase your sales, you should create three to four catalogues. You should make a catalog if you are selling clothing for children, women, and men.

Receiving Orders

Once your products are made available on the Meesho App, all Meesho resellers will be able to see them. If they feel your product is worth it, they will share it with their friends on social media. Then you will start receiving orders.

Order Delivery

You will be notified by email and via the Meesho supplier panel when you receive an order. You must then accept the order, pack the item and attach the label to it. Meesho has partnered up with many courier companies to collect and transport packages from vendors.

Payments

Online and offline payment options are both available. After the order has been placed, the reseller will be paid by the customer. Your offline orders will be paid on the 15th of each month. You can access payment information on the Meesho Supplier Panel.

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