Meesho, with an estimated value of around USD 5 billion, has become a super successful e-commerce venture. They became one of the top players in online shopping during the onset of the pandemic. Presently, Meesho has over 65 million active customers with app downloads above 100 million.
What is behind Meesho’s quantum leap? How do Meesho and other similar e-commerce apps work? What are the takeaways from their success stories?
A close analysis of all the questions above will be useful for you. The methodology they adapted may be modified to suit your business objectives. Meesho is a live example of how a brilliantly designed mobile app, an intelligent marketing strategy, and an in-depth analysis of customer needs can deliver results.
How do Meesho and other Social e-commerce apps Work?
Meesho gained much popularity by offering business to resellers, mostly women. They can run their own business, without investing even a penny. The reseller can simply share the products with their followers, subscribers, group members or connections on social media and gain profit with each piece sold. In such a way Meesho has effectively explored the potential of social media and became the first social e-commerce platform in India.
Meesho took e-commerce to another level by pivoting upon social media applications. Social media apps such as Facebook and WhatsApp have been known to create close-knit relationships even with strangers. The WhatsApp groups, Facebook pages, and Facebook groups have been the first places where the resellers’ products were promoted.
The growth has been admirable, with the support of word-of-mouth publicity from satisfied clients. Another point to note is that Meesho focused on Tier 2 and 3 cities, whereas most e-commerce apps primarily targeted customers in Tier 1 cities.
While most e-commerce platforms, including Amazon and Flipkart, typically support established sellers, Meesho and other social e-commerce apps have become a hub for homemakers, particularly women. The app opened up an opportunity for them to earn an income by working from home. The publicity the women could garner has been instrumental in igniting the growth of the company.
Subsequently, Meesho used social media influencers to promote the product. Once the app started growing, it augmented its reach by using TVC and social media ads. Undoubtedly, an easy-to-use interface, interactive design, exclusive design pattern, and a clutter-free app have been the strength behind all these social e-commerce apps, including Meesho.
Also Read: How Zartek Develop & Launch Applications
Takeaways from Meesho’s Success
Meesho is the first app to explore the potential of social media for e-commerce, making it the pioneer in social e-commerce in India. Any ambitious entrepreneur can take a cue from the marketing methodology and business model of Meesho. Implement it effectively to garner exceptional market reach and acceptance.
The key points to note are:
Social e-commerce sector in India is on a growth spree. Accenture predicts that social e-commerce value will reach USD 17 billion by the year 2025. With such a high population and presumed economic growth, social e-commerce is estimated to reach around USD 70 billion by the year 2030.
Social e-commerce is growing at such a rate that it will be the primary shopping method for people across all financial segments and age groups.
Customers from Tier 2 and 3 cities in India will have a high level of trust in the resellers and followers they build by establishing credibility.
Personalized support from the resellers would be the key factor for a wide customer base. This would eventually support the growth of the social e-commerce app.
Customers from the cities where they have limited shopping options would flock in with the smooth shopping experience offered, along with a large variety of products to choose from.
Cost-effective products available on the platform will be instrumental in making it highly acceptable.
These are some of the points that make a social e-commerce platform a viable choice. Following the success of Meesho, many have entered the market with exclusively designed social e-commerce apps. Shopsy, from Flipkart, is the most prominent one to enter the market after Meesho.
It is still not too late if you have been considering the idea of a social e-commerce platform. All you need is a properly designed app with state-of-the-art UI and UX, a well-setup logistics system, and a group of trusted resellers. The resale value would increase once you establish your presence. Hence, you must go for a well-designed mobile app as the first step.
Understanding Meesho’s Logistics Network
The cost of delivering the product to the customer is the first thing to contemplate. As you can understand, the delivery charges have direct implications on the product cost. You are halfway through your target if you can ensure cheaper delivery expenses.
Associating with logistics networks that cover the entire country, offering reduced delivery charges, has been the method adapted by Meesho. The product cost in Meesho is normally below Rs 500. This made the overall cost of a product cheaper than a product in a shop.
A close analysis of the logistics system set up by Meesho and the formulation of a similar strategy would be beneficial for you as well.
Social e-commerce apps are the future. Enter this promising sector before it is too late and reap the best benefits.
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