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The Founder

Meesho was started in 2015 by Vidit Aatrey and Sanjeev Banwal together and both of them are IIT pass outs, the interesting thing is that the startup started for some other idea and became something else.

So how did Meesho finally reach the valuation of 30 thousand crores, what things are behind them.

The first thing is the community ecosystem.

Here he focused more on the people of two communities, the first community was the one who wanted to do small business and the second community was of women.

They focused on two problems, then the first problem was that they did not have any good platform to sell, now someone will say that brother is Amazon and Flipkart. So there is very tough competition above Amazon and Flipkart, no seller can easily afford there. And secondly they do not have a supplier.

Meesho also identified two problems of women, there is no identity of women in our country. Here we are not talking about any metro cities, women are not recognized in tier 1 and tier 2 cities.

And the second problem is extra income.

Many women who have a lot of extra time and also want to make extra income but there was no way that she could make extra income.

So meesho identified the problem of 2 people, first woman and second seller.

If you tell a woman to become a seller on Amazon or Flipkart, then it will be very difficult for her, but if you tell a woman that she has to do marketing through Facebook and WhatsApp, then she will easily do this work in comparison.

So the rest of the men who were sellers here were very much impressed by those women and when women can do this business so well then why not men.

So the next strategy was the zero commission model of Meesho.

So if you see any platform Flipkart Amazon and Myntra all these platforms charge commission for selling anything to the seller. But there is no commission on meesho, you can sell your product on zero commission.

So how does Meesho make money after all?

The first way is shipping, then Meesho does all its shipping itself, that is, someone bought the product on Meesho and after that it is the responsibility of Meesho to deliver it to that place. So Meesho takes the shipping charge and Meesho does the shipping in so much bulk that they earn from there too.

Another way is advertising.

All the merchants who are above Meesho, then Meesho charges advertising fees from all of them, he says that if you want to list your products above, then you give us advertising fee and we will get your product ranked higher.

And the third way is penalty.

Here Meesho levies penalty to the seller, who either sends defective goods to the customer and or sends the goods late, then Meesho imposes penalty on all of them.

How do you earn meesho profit?

So a strategy of Meesho meant that a platform was created in the interest of the seller. So those who were local sellers had some problem, so they identified three problems.

The first problem was shipping if the seller is not selling on Amazon, then he had the problem of delivering the goods.

The second problem was that the supplier either did not get the supplier on time or sometimes the supplier used to send useless goods.

And the third problem was inventory brother, if it takes money to keep the goods, then they had to manage their inventory.

So where did meesho come, sell our goods here on our platform, you do not need to do anything, we will manage your inventory and other problems were solved by meesho.

Simultaneously, Meesho managed another thing that is Local Reliance, this means that if you open Meesho's app in Kerala, then you will see the same thing on the app which sells more in Kerala.

And if you open Meesho's app in Delhi, then you will see the first thing that sells the most in Delhi.

It is a different matter that if someone has to wear a Kerala saree in Delhi, then it is done in a different way.

But it is very important to build local credibility because the seller can sell more and more goods only to his local and people who know him around him. For example, by sharing all this catalog on WhatsApp, women can sell more and more goods to the people around them and to the people they know.

On Meesho, the seller gets a lot of freedom like if you share a catalog, then you can add your profit according to your own and share that product further.

And the second is that which product to sell, most sellers sell the same product, who have the supply of that product, but it was not so on Meesho, you can sell any product on Meesho.

Meesho has more than 23 lakh suppliers as on date.

The best thing is on meesho that own branding, all the suppliers who sell the goods here sell their goods with their own brand name.

In this, he also got a small problem, he solved this problem of Inventory Management, what happened with the Live Inventory Management System who were resellers and when they used to send catalogs to someone and sometimes that product used to be out of stock in this It used to be that the reseller did not know that the goods were out of stock until he checked and the one to whom he went to the catalog did not even know that the goods were out of stock here.

So what was the problem with the reseller that when that goods would come in stock, then I would be able to tell the other guy that the goods are in stock and now go and buy it.

So he solved this problem with Live Inventory Management System, then the goods which are out of stock in it will also be visible to the reseller and the one who has the catalog will also see it and if that goods come back in stock then to the reseller A notification will also go away and a notification will also go to the person to whom he went to the catalog that the goods have arrived in stock.

The next strategy is community mentorship.

The top sellers on Meesho help the new sellers to sell goods and if we talk about Amazon, then it is a very competitive market. Top sellers on Meesho provide mentorship to new sellers and teach them how to grow their business because Meesho is a community application.