Have you ever wondered how online shopping platforms work?
Well, let’s talk about a cool Indian company called Meesho. It’s not your usual online store.
Meesho is special because it helps small businesses and people who want to start selling stuff online.
How Does Meesho Make Money?
In this article, we’ll look at how Meesho works and how it makes money.
We’ll use simple words so everyone can understand, even if you’re not a tech expert.
So, let’s dive in and learn about this exciting company!
Fact Checked By: SharkTank Guru
Meesho Origin Story
Every big company has a story about how it started. Meesho’s story is pretty interesting.
Two friends, Vidit Aatrey and Sanjeev Barnwal, started the company in 2015. They met at a famous school in India called IIT Delhi. At first, they had a different idea.
They wanted to make a service that would bring clothes from nearby stores to people’s homes, kind of like how Swiggy brings food. But this idea didn’t work out.
Then, in 2016, they had a new idea. They thought, “What if we could help people sell things using social media?” This new idea became Meesho.
The name “Meesho” comes from “Meri E-Shop,” which means “My E-Shop” in Hindi.
Meesho grew quickly. In 2023, it was named one of the most important companies by Time magazine.
That same year, it became the fastest shopping app to reach 500 million downloads. That’s a lot of people using the app!
Meesho Company Details
Let’s look at some key facts about Meesho:
| Detail | Information |
| Company Name | Meesho |
| Country | India |
| Founded | 2015 |
| Founders | Vidit Aatrey, Sanjeev Barnwal |
| CEO | Vidit Aatrey |
| Main Office | Bangalore, Karnataka, India |
| Type of Business | E-commerce, Social Commerce |
| What They Offer | Online Reselling Platform |
| Number of Workers | Over 1,000 (last count) |
| Website | www.meesho.com |
Business Model of Meesho
Now, let’s talk about how Meesho works. It’s a bit different from other online shopping sites.
The Problem Meesho Solves
In India, many people, especially in small towns and villages, didn’t trust big online shops like Flipkart or Amazon. They preferred to buy from local shops they knew.
At the same time, many people in India wanted to start their own small businesses.
This included people like stay-at-home moms or students. But they didn’t have a way to sell things online.
Meesho’s Solution
Meesho solved both these problems.
Here’s how:
- It lets small shops and individuals sell online easily.
- It uses social media like Facebook and Instagram to help sellers reach customers.
- It makes online shopping feel more personal and trustworthy.
How Meesho Works
- For Sellers: Anyone can become a seller on Meesho. They can list their products on the platform.
- For Resellers: People who want to start a small business can become resellers. They don’t need to keep any stock. They just share product listings on their social media.
- For Buyers: Customers can buy directly from Meesho or through resellers.
This model helps create jobs and lets people start businesses with very little money.
Meesho Revenue Model
Now, let’s talk about how Meesho makes money. It’s quite different from other online marketplaces.
What’s Special About Meesho’s Model
- No Commission: Meesho doesn’t take a cut from what sellers earn.
- No Penalties: If an order is canceled or shipped late, Meesho doesn’t charge the seller.
- No Listing Fees: Sellers can list their products for free.
This means sellers get to keep all the profit they make from sales. So how does Meesho make money? Let’s find out.
Meesho Revenue Streams
Meesho has come up with clever ways to make money while still helping sellers. Here are the main ways:
- Shipping Charge
- Meesho charges for delivering products.
- The cost changes based on where the product is going.
- There are three types of delivery areas: local, regional, and national.
- Some of this money goes to the delivery partner, and some Meesho keeps.
- Sometimes, Meesho includes the shipping cost in the product price to offer “free shipping.”
- Advertisements & Promotion
- Sellers can pay Meesho to show their products more.
- These ads work like “pay-per-click.” This means sellers pay when someone clicks on their ad.
- Advertised products show up first in search results and on the homepage.
- This helps sellers get more sales.
- Meesho takes the ad money out of the seller’s earnings each week.
- Penalties
Even though Meesho doesn’t charge for most things, there are a few cases where they do charge sellers:
- If a buyer returns a product, the seller has to pay for shipping.
- If a seller promises “Next Day Delivery” but doesn’t deliver on time, they have to pay 2.5% of the order value for each day it’s late.
- If a seller breaks the rules they agreed to, they might have to pay a fine.
FAQs About Meesho’s Business Model:
Let’s answer some common questions about Meesho:
- Q1: Is Meesho only for fashion products?
A: No, Meesho started with fashion, but now you can find all kinds of products there.
- Q2: Can anyone become a seller on Meesho?
A: Yes, anyone can become a seller or reseller on Meesho.
- Q3: How is Meesho different from other e-commerce platforms?
A: Meesho focuses on helping small businesses and individuals sell online. It also uses social media a lot for selling.
- Q4: Does Meesho make less money because it doesn’t charge commission?
A: Meesho makes money in other ways, like shipping charges and ads. This model helps them attract more sellers and grow bigger.
- Q5: Is Meesho only available in India?
A: Right now, Meesho mainly operates in India, but it’s growing fast.
Conclusion:
Meesho has created a unique way of doing online business. It’s not just about selling products. It’s about giving people a chance to start their own businesses.
By using social media and not charging commissions, Meesho has made it easy for anyone to become a seller. This has helped the company grow very fast.
Meesho makes money mainly through shipping charges and ads. This clever model lets them earn money while still helping sellers keep more of their profits.
As online shopping keeps growing in India, Meesho is in a good position to grow even more. It’s an exciting company to watch, especially for anyone interested in e-commerce and social selling.
Remember, Meesho’s success comes from solving real problems for people. It made online selling and buying easier for many Indians. This shows that when businesses focus on helping people, they can become very successful.