Meesho is a social eCommerce startup helping customers to get access to products ranging from apparel, electronics and jewellery at a cheaper price. Over 70% of customers come from Tier 2/3+ cities. These customers are generally price conscious by nature yet willing to buy quality products.
The products listed by the sellers or suppliers are being pushed by resellers, which helps the Meesho model to scale rapidly.
High distribution cost: The distribution costs hits hard on Meesho financials. Acquiring & retaining the users who are price conscious needs constant burning of cash.
E-commerce business Meesho is using artificial intelligence (AI) to customize its offerings to shoppers across the country by adding personalized language and search features. The company is exploring machine learning to predict how people spell keywords to enable them to find their desire garments easily, says Vidit Aatrey, CEO.
They use facebook engagement ads to increase their brand awareness.
They paid influencers to market their brand visibility
Meesho began with a focus on social commerce, but its direct-to-consumer share has already been increasing, pitting it against big players such as Flipkart and Amazon. It now gets 75% of its revenue directly from its customers, while the remaining 25% comes from resellers.
Buying directly from the sellers would help customers to get the same product cheaper as compared to a reseller, enhancing customer experience. It would be interesting to see how Meesho tries to improve its relationship with the resellers who are the backbone of its whole social commerce model.
