Meesho earns money through a variety of channels, even though it charges 0% commission to its sellers. These channels include:
Advertising: Meesho allows sellers to run advertising campaigns on its platform. These campaigns can be targeted to specific demographics or interests, and they can help sellers reach a wider audience. Meesho charges sellers a fee for these advertising campaigns.
Ranking: Meesho sellers can pay to have their products ranked higher in search results. This can help them attract more customers and make more sales. Meesho charges sellers a fee for this ranking service.
Payment processing: Meesho charges a fee for processing payments made through its platform. This fee is typically a percentage of the sale price.
Logistics: Meesho partners with logistics companies to deliver products to customers. Meesho charges sellers a fee for this logistics service.
Data: Meesho collects data about its sellers, customers, and products. This data is valuable to businesses that want to understand the Indian market and target their products to the right customers. Meesho can sell this data to businesses, or it can use it to develop new products and services.
By charging sellers 0% commission, Meesho is able to attract a large number of sellers to its platform. This gives Meesho a large pool of data to collect, which it can use to generate revenue through the other channels mentioned above.
In addition, Meesho also earns money from the following sources:
Interest income: Meesho collects payments from sellers in advance, and it holds these payments in escrow until the products are delivered to customers. Meesho earns interest on these payments until they are released to sellers.
Investment income: Meesho has raised a significant amount of funding from investors. This funding is used to grow the business and develop new products and services. Meesho earns income from this funding in the form of interest and dividends.
Overall, Meesho earns money through a variety of channels, even though it charges 0% commission to its sellers. This business model has allowed Meesho to become one of the fastest-growing social commerce platforms in India.
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