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Meesho Business Model And Mesho Revenue Model

Last updated on July 7th, 2020 at 12:40 pm

Homemakers, Businesspersons, Boutique Owners, Teachers, Students, and many other professionals are becoming resellers, with the help of the excellent Meesho Business Model.

Indian is being one of the fastest and largest growing markets for digital consumers as per the McKinsey study.

Amitabh Kant who is a CEO of Niti Aayog said Wherever the government has opened up opportunities for women, women have done much better than men.

More than 70% of the reseller is the woman on the Meesho platform. Most of them homemakers and women dropout from the job after childbirth and always want to do something in life.

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Meesho has given a great opportunity to fulfill their life goals.

India has approximately 688 million active internet users as of January 2020 which is a great potential for Indian to grow with the help of the internet.

You have seen many pages on Instagram and Facebook that are selling products.

Some of them may be a reseller of Meesho because currently, According to Meesho’s official website, it has 1 Crore+ reseller who is earning more than 25,000+ income with zero investment.

What Is Meesho?

The Word Meesho has been taken from ‘Meri Shop’ or My Shop. Meesho Business Model helps many people across the country to earn without investing.

If you are a reseller on Meesho you can resale products like clothes, beauty products, shoes, electric items, and many more with the help of social media platforms like WhatsApp, Facebook, Instagram, etc.

How Does Meesho Start?

what is meesho reselling app

A Bangalore based company was founded in 2015 by IIT Delhi BTech graduates Vidit Aatrey and Sanjeev Barnwal.

Meesho Business Model was not the same as today, because in mid-2015 they started Fashnear with the Business Model of selling fashion products and accessories.

Fish near Business Model had not grabbed the opportunity in the Indian market because already many e-commerce companies were running.

At the end of the year 2015, Vidit Aatrey and Sanjeev Barnwal changed their business model and introduced Meesho with the concept of listing local vendors’ products on Meesho and recommended for sharing that product on the social media platform to acquire the customer.

FashNear app also allowed its users to view products placed on the app, choose your desired product, get your desired fashion product at your home for a home trial, and then if you like the product then buy on click.

Again this Business Model of Meesho did not work then they introduced a new Meesho Business Model after proper research and development.

Meesho Business Model

The Business Model Of Meesho is helping crores of people to earn without opening a mom-and-pop store. Meesho is empowering women with its well-planned business plan. Let’s understand the business model of Meesho or Meesho’s case study in depth.

Understand Meesho Reselling App

Meesho is the app that helps you to make money without investing.

For instance, if you want to start a shop in your city or town so you have to take a shop on rent, give a salary to an employee, register your shop under local authority guidelines and many more.

But if we talk about the Meesho reselling app then this is your own shop in your pocket.

Meesho is a reselling app that means you can resale products listed on the Meesho with the help of the digital platform such as WhatsApp, Facebook, Instagram, etc.

It is India’s largest reselling platform where Meesho ties-up with suppliers and manufacturers. Resellers can order the desired product with the help of the Meesho app without contacting the supplier and manufacturer.

If you are a housewife, student, or belongs to any other profession it doesn’t matter just become a reseller on Meesho and start your business journey.

Let’s Understand How Do You Can Resale Product On Meesho App Step-by-step:-

Step 1. Download The Meesho App (if someone refers you so user referral code that will give you some benefit)

Step 2. Register Yourself On Meesho App.

Step 3. Learn how to resale on Meesho with its community.

Step 4. Browse the product according to your choice with filter.

Step 5. Select the item and share product images with product detail with your desired price on your social media platform.

Step 6. If someone wants to buy, take a product code from a shared image mentioned on an image with your customer address and place an order for that product by adding your margin.

Step 7. You can track orders and wait for products delivered by Meesho.

Step 8. After delivery of item Meesho will deposit your margin on your bank account.

Product Range On Meesho

They claim there are more than 1lakh+ products on the Meesho app in the various category some are:-

Garments:- Fashion is a prime reselling on the Meesho platform. Reseller can make money by selling garment of kids, men, women such as T-shirt, shirt, Kurta, Saree, Jeans, Cap and many more

Home and Living:- With the help of this app you can resell home and living goods like a bedsheet, home utilities’ product, carpet, foam, etc.

Personal Care & Wellness: Resellers can sell personal care and wellness products like makeup kits, eyeliner, hair spa products, handmade soaps, etc.

Grocery Items: Meesho listed grocery items on its app for resale like cashew, ghee, tea, biscuit, garlic, sugar, pickle, syrup, etc.

Appliances: Reseller can sell appliances like hairdryer, trimmer, digital weight scale, vaporizers, led lamp, torch, etc.

Apart from this Meesho also provides resellers to sell different categories of products like health and wellness products, education-related products, the festival needs product, consumer electronic products, and many more.

How Does Meesho Pay To Reseller?

Meesho resellers can earn as they earn offline, a reseller can add a margin on the actual price of the product.

Generally, the Meesho reseller adds a margin of around 20%-60% and also depends on your target customer and product category.

For instance, if you are Meesho reseller and want to share an image of a good-looking T-shirt and that T-shirt actual cost is Rs. 300 with cash on delivery then you can add your margin of Rs.200 (depend on your customer and product category) and tell your customer that its cost is Rs.500 with cash on delivery.

If the customer agrees with your price and places an order then you can add your margin on order.

After delivery of the T-shirt, Meesho will transfer your earnings to your submitted account details.

How can suppliers sell the product on the Meesho app?

Suppliers can list their product on Meesho app sell their product to 7,00,00,000+ customer (according to Meesho as May 2020) by following these steps:-

Step 1. Visit the website of Meesho at Supplier.meesho.com

Step 2. Click on become a Supplier.

Step 3. Fill the details like Business Name, Phone Number, Email address, City, Select your product category, the Price range of your product, average stock count, etc.

Step 4. Click your product images in high quality and upload on Meesho.

Step 5. When the reseller will sell and place an order on Meesho App then the supplier will receive the order.

Step 6. Pack the order and sit on the chair because delivery was handled by Meesho.

Step 7. Payment directly deposited by Meesho on account detail given by the supplier.

Who can become a supplier on Meesho?

After filling a form and providing all information asked by Meesho, Manufacturer and Merchants can become a supplier. If someone wants to become a supplier on Meesho reselling app, so he/she has GSTIN (GDT Identification Number), PAN Card, Bank Account.

Benefits To Become A Meesho Reseller or Positive Aspects Of Meesho Business Model

Meesho reseller gets some benefit from Meesho Business Model like:-

Zero Investment: If you want to become a Meesho reseller you don’t need to purchase or rent a shop. You can start your business with zero investment to become a seller on Meesho App.

Product Categories: Meesho app has different types of variety. If you are a reseller of Meesho so you can resale different categories of products.

Delivery: You don’t need to pack a product and deliver it at the door-step of your customer. Just place the order and all logistic work will be done by Meesho.

Good Margin For Reseller: Meesho reseller can earn a good margin by reselling Meesho products.

Easy Return Policy: If the reseller customer doesn’t like the product, he/she can easily return the product within 7 days and Meesho will refund the amount.

Learn: Meesho App is available in 8 languages, English, Hindi, Telugu, Tamil, Kannada, Bengali, Malayalam, Marathi. Resellers of the Meesho app can read a blog and develop their selling skills to grab more customers.

GST Included: Don’t need to pay GST because all products listed in the Meesho app have been priced including GST.

Meesho Wallet: it is an online wallet in-app and resellers can easily use it to purchase a new product. Meesho Wallet is very important because of the Meesho transfer bonus and your referral commission in the Meesho wallet.

Some Negative Aspects Of Meesho Business Model

As we know everything has two side positive and negative aspects so, there are some challenges for reseller:-

Lack Of Trust: As compared to other E-commerce websites like Flipkart and amazon, Meesho Business Model is different.

If the reseller is selling Meesho products on a social media platform many times’ reseller customers don’t trust the reseller because of no website of reseller, No tracking facility, and many more.

Quality Of Product: Mostly products listed on the Meesho App are local and sometimes it is not possible to see the exact quality of product display in catalogs.

Call Support Service: The customer call support service is not much good as compared to another E-commerce website like Facebook, Amazon. Meesho provides a call support service from 10 am to 7 pm.

How does the Meesho Revenue Model Work?

If we talk about the Meesho Revenue Model, so analyze Meesho Income, Expenses, And Loss in the FY18-19.

So, Meesho revenue model currently is not on a path of profit.

Because if we talk about the Meesho income in FY19 so that is Rs.84.88 cr with Rs.100.42 cr loss.

Meesho’s revenue model has faced loss in FY19 that was 19x of loss in FY18. Meesho has spent 91% of its total revenue on deliveries alone; now you can imagine why Meesho is suffering the loss.

Now, let’s understand how the Meesho Revenue Model makes Money?

There are three things of Meesho Revenue Model to make money

1. Commission: Meesho makes money by taking some percentage of commission on selling suppliers’ products.

2. Meesho Logistic Chain: As we discussed above Meesho spends 91% of its revenue on the delivery of goods at customer door-step, so Meesho also takes a fee to deliver products.

3. SEO: By boosting the supplier’s product on the top in the Meesho app, Meesho charges some amount of money.

Fund Raised By Meesho App Inc.

Meesho has raised $215.2M of funding from 8 rounds.

And the recent funding raised by Meesho from a series D round totaled $125M on 25 august 2019.

Facebook also made an investment in Meesho with $25M on 14 Jun. 2019.

Apart from there are 11 lead investors of Meesho App some are SAIF Partners, Venture Highway, Sequoia Capital India, DST Partners, Arun Sarin, Shunwei Capital, etc.

Is There Any Competitor Of Meesho App?

Yes, Meesho has some competitors and top competitors of Meesho are:-

1. GlowRoad: It is also a reseller company founded in 2017 by Sonal Verma, Kunal Sinha, Nitesh Pant, Shekhar Sahu, and Nilesh Padariya. GlowRoad is working in more than 400 cities globally.

2. StoreHippo: Gurgaon based StoreHippo was founded in 2014 by Rajiv Kumar and works on B2B and B2C business models.

3. Shop101: Shop101 is founded by IIT Kanpur to pass out Abhinav Jain and Aditya Gupta in 2015. The Shop101 business model is the same as Meesho Business models. start your online shop with zero investment and many more.

If a reseller looking for more than Sho101 gives you advanced features like premium website themes, get your personal domain, etc.

Conclusion: The Meesho Business Model has changed much time as we discuss above but after changing the business model Meesho is incurring losses. According to my opinion, Meesho should focus on the quality and its customer support system and try to control the cost of delivery.

After all, they are doing well so it can grow in the future because Indian consumer behavior is converging toward e-commerce day by day.  

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