Categories
Recent Posts
Table of Contents
Meesho Case Study: How It Made Online Shopping Affordable
What if you could buy common goods at reasonable rates and enable small businesses to sell goods to customers all over India? It is this concept which is what made Meesho successful in e-commerce.
Meesho was established in 2015 by its founders Vidit Aatrey and Sanjeev Barnwal, as a social commerce platform to sell products through social media. It eventually evolved into an internet marketplace that will enable shoppers to shop from dealers directly.
It demonstrates the potential for growth in a business with an understanding of customer needs, providing affordable products, and making online selling easier.It exemplifies the power of understanding customer needs and providing affordable products and making online selling simpler.
What Is Meesho?
Meesho is an Indian e-commerce website offering everything from clothing to footwear, beauty products to accessories, home essentials and more.
The platform links customers to manufacturers and wholesalers as well as to a number of small businesses looking to sell their products online. It provides a chance to sell products that are not available in their local markets without setting up shop in each city.
Also Read: How a Credit Card App Became a Fintech Platform
Meesho's primary aim is to make online shopping more accessible and affordable for more people.
How was Meesho founded?
Meesho was founded in 2015, with the aim of social reselling. The initial business concept was for users to find products and then share them with friends and family via social networks.
This method provided opportunities for people wanting to make money in selling goods without having to invest in a “shop”.
With the shifting trends in online shopping, Meesho's strategy grew and evolved into a larger e-commerce platform. Shopping visitors would be able to look at goods and order online, in addition to sellers being able to access a larger market.
Also Read: Policybazaar Case Study
This change enabled Meesho to go beyond social reselling and connect with more customers.
How Does Meesho Run Its Business?
Meesho is an online marketplace that facilitates the buying and selling process. It is a business model based on low prices, the involvement of the sellers and easy online shopping.
There are four simple steps to the process:
-
Product image, description and pricing is uploaded by sellers: Businesses post product images, descriptions and pricing.
-
Customers order items: Customers will vary shopping options and choose what they would like.
-
Orders are fulfilled: The platform has a logistics network and delivery partners which allows for orders to be fulfilled.
-
Sellers can connect with a larger audience: Meesho allows businesses to tap into the wider reach of the market, customers throughout India.
An important aspect of Meesho's marketplace strategy is that they offer zero commission to their sellers on its regular product categories. This aids in lowering the barrier to selling online, but other applicable service charges and terms may differ.
How Does Meesho Run Its Business?
One of the frequently asked questions about Meesho is how it is able to monetize when it has a zero-commission model for the sellers in the conventional product categories.
It has a number of other revenue streams in its business plan.
1. Advertising Services
The sellers can advertise their products on the platform, for an additional fee. By using advertising, product listings can be seen by a wider audience of potential customers and it can generate revenue for Meesho.
2. Logistics Services
Meesho's logistics system and delivery partners enable the delivery of products. It has a logistics project called "Valmo" that aids in logistics coordination. It is involved in logistics-related services as part of its overall business.
3. Additional Platform Services
With its expanding market, Meesho can provide more features to enhance the product's visibility and enable sellers to manage their businesses effectively. Such services provide additional sources of income.
Also Read: Nykaa Case Study
The share of revenue from each of these sources varies from year to year.
What is the reason behind Meesho's popularity?
Some business choices at Meesho are associated with its growth, which is geared toward the requirements of Indian consumers and sellers.
-
Budget-friendly prices: Customers can browse the items by different categories at affordable prices.
-
Support for small businesses: Manufacturers, wholesalers and smaller sellers can sell to customers online without having to open stores in various locations.
-
Target smaller cities: With more customers looking to do shopping via smart phones in smaller towns, the platform is for them too.
-
Extensive selection of products: The user is able to find fashion, beauty products, accessories and home essentials in a single place.
-
Accessible shopping: When mobile, the user can easily browse, and order products.
All this has contributed towards the growth of Meesho in the booming Indian e-commerce sector.
The difficulties that Meesho encounters.The problem faced by Meesho.
Establishing a sizable online marketplace also poses some challenges.
-
High competition: Meesho is facing competition from other e-commerce apps that provide similar products and shopping experiences.
-
Exceeds expectations: Products are consistent with their description and pictures.Meets expectations: Products are consistent with their description and pictures. Bad product experiences can result in returns and loss of trust.
-
Deliveries and returned orders: Deliveries and returned orders are a challenge to manage in India and demand efficient deliveries and cost control.
-
Profitability: If it's affordable, customers might be drawn to the business, but it's also important that the business has the ability to manage operating costs and create sustainable revenue streams.
It's crucial to tackle these hurdles to ensure customer satisfaction and sustainable business expansion.
Key Business Lessons From Meesho: An Indian eCommerce Company.
The journey of Meesho holds some valuable lessons for entrepreneurs and small business owners.
1. Understand Your Customers
Meesho was targeted at the segment that wants to buy cheap products. Knowing of these needs and affordability will assist in better decision making for businesses.
2. Make Selling Easier
Small companies tend to face a problem when it comes to getting their message to people outside their local area. They can be helped to find new customers through digital platforms, without having to open multiple physical stores.
3. Be prepared to adjust to market changes.
Meesho went from a social reselling to an all-encompassing ecommerce marketplace. Businesses need to be prepared to adjust their strategies to meet the needs of the market and their customers.
Develop an ongoing revenue stream.
Acquiring customers isn't the only thing a business needs to do. Entrepreneurs also need to be familiar with expenses, find the right ways to make money and focus on profitability in the future.
6. Emphasize Customer Trust.
While cheap is enough to bring in customers, good service, information and shopping experience is what makes customers come back.
Conclusion
Meesho's case study proves that with online shopping becoming affordable for everyone and small businesses getting opportunities to grow, a startup can be grown. It expanded its social reselling to a wider e-commerce marketplace, expanding its reach.
The most important takeaway for those who are wanting to start a business is that sometimes, you don't have to come up with a brand new business idea. At times, the opportunity is creating a simpler, less costly and more available process.
Entrepreneurs who understand their customers, adjust to market demands and create a viable business can transform this into a viable business.
Source & Disclaimer
This article is independently written using publicly available information about Meesho, its business model, revenue sources, growth strategy, and journey in India's e-commerce market. The information is intended for educational and informational purposes. Business details and revenue models may change over time.
Source: Meesho
Digital Startup India is an independent private platform and is not affiliated with or endorsed by Meesho, its founders, or any organisation mentioned in this article.