Introduction to Meesho delivery franchise
Vidit Aatrey and Sanjeev Barnwal, two IIT Delhi alumni who launched the social commerce platform Meesho in December 2015, The pair founded a company called “Fashnear,” a hyper-local fashion shopping software that curates goods from close-by clothing boutiques. A delivery worker would complete the order after potential customers select three products from nearby boutiques or fashion stores. Fashnear, however, didn’t turn out well. Due to their interactions with store owners during this debacle, the founders gained market insights. Fashnear changed its focus to help unorganised, small-scale vendors launch their internet stores. The duo named their new company “Meesho”.
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The name was inspired by “Meri E–Shop”, translated to “my online shop” with an idea to serve as a shop for everyone in the country.
The platform enables individuals and small businesses to launch their online storefronts through social media platforms like WhatsApp, Facebook, Instagram, and others. Meesho is currently valued at over $4.9 billion and has a number of illustrious investors backing it. This social e-commerce firm boasts 65 million+ active customers and 100 million+ App downloads.
The business model of Meesho
Meesho’s Revenue [Business] Model is just like any other e-commerce enterprise. There are many ways by which Meesho earns money that is as follows:
Meesho generates revenue by charging commissions to sellers. Any time a reseller sells a product on the Meesho platform, the product seller will be charged a commission of between 10 and 20 percent. The commission-based approach is identical to that used by e-commerce sites like Amazon, Flipkart, etc.
Note = Commission is not charged from the individual users (Resellers) but from the registered businesses’ (Sellers) who ultimately sell the goods/products through the platform.
On the Meesho Platform, there are more and more sellers every day. Meesho receives revenue from sellers who want to highlight their goods at the top of the product page. It could be an additional source of income.
Selling of Data
Data adds a new revenue stream for Meesho because, as we all know, it is the new oil in today’s society. Meesho did not breach any privacy policies; they are only permitted to sell data that complies with all applicable privacy laws.
Meesho accepts the high delivery fees and makes an effort to effectively negotiate a reduction. Meesho can increase its revenue by adopting logistical technologies.
Meesho’s Marketing Strategy
The platform has highly focused on its target consumers and has used marketing to connect to the audience’s higher aspirations and emotions.
Here are some examples of Meesho’s marketing campaigns:
Defying All Odds!: Mission Rise
Mission Rise, a summit exclusively for women entrepreneurs, was conducted by Meesho in 2019. Mission Rise brought together more than 100 of these successful women company owners to offer business advice, discuss their struggles, and encourage others to move forward by providing a platform for people who have earned a living for themselves independently.
Sahi Sahi Lagaya Hai
If there is one thing that unites Indian consumers, it is our desire to acquire the most value possible from every purchase. We regularly use the word “sahi sahi lagao na” (quote the right price) while bargaining with neighbourhood sellers regarding the fair price for the goods we buy.
In order to cater to customers who are looking for a good deal, Meesho started the “Sahi Sahi lagaya hai!” campaign before the holiday season. The campaign’s central idea is to relieve clients of the inconveniences of spending endless hours scouring local markets for the greatest goods at the lowest price by guaranteeing them that the products on Meesho are priced fairly. Here, the focus is not on the “lesser” price or the “higher” price but on the “right” value for every product purchased from Meesho.
My Store My Identity
Meesho pays tribute to Indian women who have surmounted societal and economic barriers to forge their own identities in one of their first television advertisements. The movie makes the point that although though a woman may go by numerous names (such Bahu, Beti, or Amma), she only has one true identity.
The major qualities that Meesho’s marketing campaigns and methods consistently highlight include encouraging female entrepreneurs and independent earners, demonstrating how simple it is to browse the platform, and helping local businesses to establish their own internet presences.
Through such marketing strategies, Meesho has created an appeal for audiences living in Tier 2+ cities who aspire to create independent living and get the best products at the most affordable rates.
Meesho revenue model: How is Meesho making money?
The income model of Meesho is relatively comparable to that of other social E-commerce companies. Fee used to be their main source of income, but starting in August, the site stopped charging any commission, making it one of the few markets to do so.
Ads and rank push are currently Meesho’s main sources of money. Meesho, like Amazon and Flipkart, permits its suppliers to run advertising and present their goods to a larger audience of people. The best aspect is that vendors will only be charged if a client clicks on their advertisement.
The other 2 Potential sources for Meesho to earns its revenue from:
Selling of data
Meesho has access to a sizable amount of user data, some of which it may choose to share with its partner businesses. These partner companies can utilise this information to better understand user motivation and wants in order to expand their businesses. Meesho asserts that they would safeguard the private information of their consumers.
Meesho has partnered with a number of logistics companies to fulfil orders. Meesho has the ability to make a tiny portion of the delivery fees after handing the remainder to its delivery partners once a product has been delivered.
Meesho saw a 4X increase in income from Rs 84 Cr in FY19 to Rs 341.6 Cr for FY20. In FY2020, the company’s activities generated about 90% of its revenue, with the remaining 10% coming from outside sources.
Its spending increased 3.5X to Rs 657 Cr, resulting in a huge loss of Rs 315.4 Cr. As it grew to 700 towns and cities in India, the company spent around 38% of its revenue on logistics.
Is selling on Meesho profitable?
College students, housewives, and anyone looking for a part-time job have the wonderful opportunity to earn Rs. 20,000 to 25,000 per month by simply reselling the products available on Meesho through their contacts thanks to the wonderful ResellingApp Meesho, which is also available on both the Google Play Store and the iOS App Store.
Previously, after placing an order with a seller, the reseller had to handle issues such product packaging, delivery, payments, etc.
For the reseller, Meesho made the entire product distribution process simpler.
With 650+ product categories, Meesho offers more than 50 lakh unique product models at the lowest prices.
Now that the app’s curated digital portfolio is available, the reseller can offer things to her audience with ease. The finest retailer, then, won’t run out of goods to sell.
When a customer expresses interest in a certain product, the reseller only needs to enter the customer’s address and add a margin; Meesho logistic partners will then send the product from the seller’s location.
Meesho advertises that selling on their platform is completely commission-free and profitable.
We may offer our products on Meesho with a 0% commission and increase our profit because Meesho does not charge the provider any commission. Furthermore, Meesho manages the shipment process with their logistics partners, who pick up the goods at your door and ship them directly to the buyer, so we don’t have to pay any shipping fees.
The majority of Meesho resellers are Indian housewives who wanted to establish their own business or make money but were unable to do so in the past due to the lack of necessary funding. These housewives can launch their own online businesses from the comfort of their homes with Meesho’s tools, resources, and advice.
Is Messho B2B or B2C?
The business model of the company can also be explained as a B2B along with being a B2C if we highlight the reselling opportunities that Meesho brings in!
Meesho makes money by charging sellers commissions. The product seller will be charged a 10–20 percent commission when a reseller sells a product on the Meesho platform. The commission-earning mechanism is comparable to that used by e-commerce sites like Amazon, Flipkart, and others.
Some claim that reselling on Meesho has allowed them to make over a lakh each month. The best thing is that since reselling doesn’t need any investment, there are absolutely no losses. Most resellers make up to Rs. 25000 per month on average. Simply pick a product that appeals to your target market and offer it to your contacts while including your margin in the price of the item. Voila! The margin you add to the item is now yours.
Meesho turnover and revenue
Meesho, a leader in social commerce, saw a 158 percent increase in sales income in the fiscal year that ended on March 31, 2021.
The firm sponsored by Meta reported sales revenue of INR 792.8 Cr in FY21, a 2.5X increase from INR 306.9 Cr in FY20.
The startup’s other income brought in INR 45.8 Cr in FY21, up slightly from INR 41.7 Cr in FY20. The startup’s overall revenue in FY21 increased by 140% from INR 348.7 Cr in FY20 to INR 838.6 Cr when revenue and other income are combined.
Additionally, from FY20 to FY21, the startup’s spending nearly doubled. According to media reports, the Bengaluru-based startup spent INR 1,337.3 Cr in FY21, a 2X increase from INR 655.3 Cr it spent in FY20. The startup is reportedly eyeing a potential IPO in 2023.
Meesho has thus invested INR 1 to make INR 0.59 paise.
Employee benefit costs, which include wages for employees, PF contributions, gratuities, and other benefits for employee welfare, were estimated at INR 149.3 Cr, a significant increase from INR 106.8 Cr in FY20.
Meesho delivery franchise
Meesho doesn’t provide a delivery franchise yet it follows a smart delivery strategy. Following its spectacular success in other product categories such as clothes and kitchenware to beauty and technology, Meesho has launched the grocery service in a few small cities in Karnataka and will be establishing a separate brand named Farmiso. The typical minimum order in the grocery and food industry that is eligible for free delivery currently ranges from Rs 600 to Rs 800. The large corporations are also abandoning the required minimum order for free delivery in light of Meesho’s objectives. Big Basket has begun providing a free service for tickets up to Rs 199 in size. Additionally, Jio Mart has started providing free delivery without a requirement for a purchase.
Utilizing “community leaders” in these cities and towns, who would collect grocery orders from individual customers of various ticket sizes through the platform and handle last-mile delivery, is the cornerstone of Meesho’s innovative concept.
Meesho initially concentrated on social commerce, but as its direct-to-consumer market share has grown, it is now competing with major firms like Flipkart and Amazon. Presently, clients account for 75% of the revenue, with resellers accounting for the remaining 25%.
Customers would receive the same goods more affordably by purchasing directly from the sellers as opposed to a reseller, improving the customer experience. It would be intriguing to see Meesho’s efforts to strengthen its bond with the resellers who form the foundation of the entire social commerce strategy.