How Does Meesho and Other eCommerce Reselling Apps Work in India!
During the COVID-19 pandemic, life put us all on lockdown. According to research, more than 65% of customers still do not prefer to visit a brick-mortar store. This was when sellers and brands planned to sell online, and they adapted the eCommerce platforms and apps as their ammunition. During this period, India’s eCommerce business tendency is snowballing. Business minders come up with the idea of reselling the products, and this is easy to start and doesn’t even require a lot of money to invest.
Nowadays, resale has become a full-fledged business that can let you generate more revenue than a paycheck. You must wonder what exactly reselling is and how reselling apps work. In this blog, you will find how this eCommerce business model works, what reselling is, and how Meesho and other reselling apps work. Let’s go in and dig out all the required information about reselling and reselling apps.
Definition of Reseller and Reselling Apps
First of all, let’s focus on the reseller; well, a reseller is someone who purchases products in bulk from a manufacturer, wholesaler, or retailer and then sells those products to their own customers on a high-profit margin. Additionally, you have the opportunity to share the product catalog through Facebook, WhatsApp, Instagram, and social media with your customers. This form of business is also known as social commerce. There is a slight difference between seller and reseller, seller can not resell their products via any other medium other than an eCommerce platform.
This business model is quite popular in India because it doesn’t require a hefty investment. With the thriving popularity of reselling, reselling apps such as Meesho have entered the market to modify this business model. This social commerce platform has grown tremendously over the past few years. Reselling apps allow you to make the payment only after a customer confirms an order, in case you are buying reselling products from the social commerce platform or app only.
How Does Messho Work as a Social Commerce Platform?
Undoubtedly, no such introduction is required for the social commerce platform or reselling app Meesho. This platform has changed the entire picture of reselling. It has to provide unexpected exposure to the resellers and make it easier for them to sell their products and attain decent revenue. Payment transactions with Meesho are safe and speedy. It offers very low-cost refunds and delivery options as well. This reselling app has emerged as a trusted brand by more than 3 million resellers across India. The recent advertisement of Meeshos’ says “Chote Paise Badi Shopping,” which perfectly describes the app’s service to its customers.
It has provided tremendous opportunities for small businesses to come aboard and sell their products promptly. Without the requirement of heavy investment, you can start your own business today with Meesho. The tagline of this reselling app is “Not just a homemaker, but as a Meesho Entrepreneur.” Numerous homemakers have now connected with this app and run their businesses successfully.
What is the Operating Process of Meesho?
As you already know, Meesho is essentially social commerce and operates on a D2C (Direct-to-customer) eCommerce business model. As a reseller, you have the advantage of promoting your available products on your social media platforms, WhatsApp, etc. expanding the scope of selling your products. Products will be offered by a third-party manufacturer who is associated with Meesho. You can say that reselling with Meesho is an uncomplicated and compelling way to work from home and generate revenue.
Meesho charges a cost of commission of between 15%-20% on all items sold by the reseller. However, it charges significant penalties on product returns. This app has more than 700 employees and is focused on a market of over 15 million resellers. This social commerce brand claims to have a presence in over 800 locations.
To sell your products successfully with n on Meesho, you can take the help of eVanik OWS as a marketplace reconciliation software. It can help you analyze your rivals’ pricing strategy and let you grow immensely.
What are the Products you can Sell on Meesho?
Meesho has a diversified range of product categories. All products are inspected to check for quality purposes, and Meesho ensures that they are shipped responsibly. You may find resale items from Meesho as well. It facilitates you to sell a distinctive product range and expand your customer base. Following are Messho’s product categories from which you can select and sell.
- Kitchenware products
- Women’s Clothing
- Men’s Clothing
- Kids Clothing
- Household Products
- Home furnishing products
- Beauty products
Customers prefer to shop from this platform because all the products available are budget-friendly. This social commerce app’s future plan is to have approximately 100 million active customers and add more than 50 million products in its categories by the end of 2022.
Challenges you can Face While Selling on Meesho
Well, Resellers, advantages come with challenges. Thus, this app also has several business challenges you may experience while selling products on this platform. Let’s have a quick sneak peek into Meesho’s business challenges.
High Distribution Cost
The initial stage of Meesho began with the ethnic fashion category, targeting homemakers and women who were running their boutiques and reselling their products through social media applications. During the pandemic, the distribution costs have significantly impacted the financial aspect of this platform. Because customers prefer to buy face masks, sanitizers, personal care products, and groceries online. They have fewer opportunities to go out and attend any function. Thus the requirement for ethnic clothes and beauty products gets reduced. However, this app has now started to offer personal care products along with other above-mentioned product categories.
Poor Product Quality
Most customers reported that the product they purchased from Meesho was of poor quality. It can be the reason that this app has still not made its way to reach out to urban customers. Indeed this app is famous in small cities but has to sell quality-based products to reach urban customers. As a reseller, if you buy products directly from Meesho there are chances you may end up selling poor-quality products to your customers.
Delay Delivery/Critical Customer Support
Another business challenge you can face on this app is the delay in delivery and poor customer support. Numerous customers have reported that their order gets delayed frequently. When orders get delayed, customers try to reach out to the support team to seek information about the status of their order. But unfortunately, in so many cases, Meeshos’ customer support team fails the customer. Only can only imagine the level of dissatisfaction experienced by such customers.
Thus, if you want to sell through the Meesho app, you may occasionally have to face such challenges. On the other hand, you can still upsurge your revenue by enhancing the listing quality of your products on Meesho.
Other Reselling Apps in India
Shop 101
This reselling app represents itself as the number one reselling app in India. It has diversified product categories from clothing to home decor, kitchen, beauty, electronics, etc. They have approximately 50 lakh four-star rated resellers.
OLX
You must be aware of this app; it is pretty old in the social commerce business model. This user-friendly reselling app works exactly as an advertisement does in a newspaper. One can resale and buy furniture, household items, cars, electronic appliances, etc., from OLX. It provides a unique chat box function that helps you connect with customers directly.
eBay
eBay is another most popular app in India and worldwide. You can buy and sell products through eBay from any location in the world. You can sell almost everything on this platform, such as clothing, vehicles, cosmetics, jewelry, and electronics. This app has over ten thousand downloads on Google play.
Conclusion
The vast eCommerce market has diversified opportunities for you to start your own business. It can make you self-reliant and increase your confidence to live the life you want. Reselling business model is getting adopted by thousands of people every day. You can also grab this opportunity and start selling through above mentioned social commerce platforms. However, whether it is a small or a big business everyone should have a track of their finances. In this regard, you can take the help of the payment reconciliation service of eVanik OWS. It can help you with hassle-free payment proceedings and keep a record of your every transaction.
