Introduction: Meesho, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, aims to empower individuals, particularly women, to become entrepreneurs and earn income by selling products to their social circles through popular social media platforms like WhatsApp, Facebook, and Instagram. Meesho acts as an intermediary, connecting suppliers, manufacturers, or wholesalers with a vast network of resellers, creating a seamless ecosystem for commerce to flourish.
Meesho is a prominent Indian social commerce platform that connects suppliers and resellers, enabling individuals to start their own businesses by selling products via social media channels. Its business model revolves around facilitating a network of micro-entrepreneurs, helping them source products, manage inventory, and reach customers. Here’s an overview of Meesho’s business model:
Supplier Network: Meesho partners with various suppliers, manufacturers, and wholesalers across different categories such as fashion, beauty, home essentials, electronics, and more. These suppliers offer a wide range of products at competitive prices, ensuring that resellers have a diverse selection to offer to their customers.
Reseller Onboarding: The core of Meesho’s business model is the recruitment and onboarding of resellers, who are predominantly individuals seeking a source of income. Meesho provides resellers with a user-friendly app that serves as a platform for product discovery, order management, inventory tracking, and customer communication.
Product Catalog and Pricing: Resellers browse Meesho’s product catalog through the app, selecting items they believe will appeal to their target audience. They can adjust the selling prices to accommodate their profit margins, making it easier to tailor their offerings to local market preferences and affordability.
Social Selling: Resellers leverage their social media presence to promote and sell products to their friends, family, and followers. They create engaging posts with product details, images, and pricing, effectively turning their social channels into online storefronts.
Orders and Fulfillment: When a customer expresses interest in a product, the reseller processes the order through the Meesho app. The supplier is then notified to fulfill the order, packaging the product and sending it directly to the end customer. This “dropshipping” model eliminates the need for resellers to hold inventory or manage shipping logistics.
Monetization: Meesho generates revenue through a commission-based model. Suppliers pay Meesho a commission on each sale facilitated through the platform. The commission percentage varies based on the product category. This revenue-sharing approach ensures that Meesho’s success is closely tied to the success of its resellers and suppliers.
Value Proposition: For Resellers:
- Opportunity: Meesho offers individuals a low-barrier entry point to start their own businesses with minimal investment and risk.
- Flexibility: Resellers can work from home, set their own hours, and manage their businesses around personal commitments.
- Training and Support: Meesho provides training, marketing materials, and customer support to help resellers succeed.
For Suppliers:
- Access to a Wide Network: Suppliers can tap into a large network of resellers who have access to various customer segments and geographic areas.
- Reduced Marketing Costs: Meesho’s resellers act as independent marketers, reducing the need for extensive advertising efforts.
- Efficient Distribution: The dropshipping model reduces the need for suppliers to manage individual orders and shipments.
Challenges and Future Prospects: While Meesho has achieved significant success, it also faces challenges such as competition from other e-commerce platforms, maintaining quality control across a wide supplier base, and ensuring the sustainability of resellers’ businesses in the long run. The company continues to evolve its platform, adding features like digital payments and credit options for resellers, as well as expanding its product categories to cater to a broader audience.
Conclusion: Meesho’s business model revolutionizes the way commerce is conducted by enabling a decentralized network of micro-entrepreneurs to connect with suppliers and reach customers through social media. By fostering economic empowerment and entrepreneurship, Meesho contributes to India’s growing digital economy while transforming traditional notions of business ownership and distribution.
