🪧 Problem Statement

<aside> 💡 Despite offering a wide range of products, there's a noticeable gap in buyer confidence due to limited information about resellers and the products they offer. This lack of transparency and detailed product information hinders buyer trust, impacting purchasing decisions and potentially affecting overall sales on the platform. The proposed solution explores the effectiveness of adding informative posters about resellers and their products to bridge this trust gap and enhance the buying experience.

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ℹ️ About Meesho

Meesho is an India-based social commerce platform founded by Vidit Aatrey and Sanjeev Barnwal in December 2015. The platform enables small businesses and individuals to start their online stores via social channels such as WhatsApp, Facebook, Instagram, etc. The stakeholders involved here apart from Meesho are the suppliers, resellers, and buyers.

Suppliers register themselves on the Meesho platform and list their products which are bought directly by the customers or via resellers. Resellers share the products of their choice on channels like WhatsApp, Facebook, Instagram, etc. by adding a profit margin of their choice. Meesho takes care of the delivery and payment logistics. Shadowfax Technologies is their logistics partner.

It is a e-commerce app available for iOS, Android, Windows, Mac and Web-platforms

Total funding raised: $1.1 Bn

Operating revenue in FY21: Rs. 793 crores

Total expenses in FY21: Rs. 1337.30 crores

Meesho’s Vision

<aside> 💡 Meesho’s vision is to enable 100 million small businesses in India, including individual entrepreneurs, to succeed online

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Revenue Model

Meesho, distinct from other E-Commerce companies, does not charge commissions or penalties from its suppliers, instead generating revenue through alternative means.

  1. Shipping charges
  2. Ads from the suppliers
  3. Reverse shipping fee charge for the suppliers if they ship the products late and the customers refuse to take it
  4. Float money (a potential revenue stream in the future if not being used currently): Meesho pays the supplier and reseller after 10-15 days, this money can be used as a loan with interest
  5. Use of the immense data they have (a potential revenue stream in the future if not being used currently)

Cost Structure of Meesho:

  1. Technology maintenance (Server, subscriptions, etc.)
  2. Salaries to the employees