Meesho Goes Direct; Loses business and friends

meesho goes direct meesho news

Meesho stands for “meri eshop” (my shop in English). Meow was established by IIT Delhi students Vidit atrey and Sanjeev Barnwal in 2015. Meesho has a focus on social commerce but its direct-to-consumer share has already been increasing, fitting it against big players such as Flipkart and Amazon. Meesho to celebrate the finance of Indian women. 

CEO of Meesho Vidit Atrey often respected their Grand promise of meesho empowering India women and making it initially independent by giving them a platform to be an entrepreneur with zero investment.

Reseller Pooja 

Pooja from Surat has been working as a reseller for the social commerce app that shows supply and branded clothing for women, girls and children from suppliers through the app and selling to her friends and relatives on WhatsApp and other social media platforms.

Pooja takes around 40 orders per day and earns nearly rupees 60,000 per month online. Pooja achieved the “emerging reseller” award in 2019.

She says she has  off-course almost all her customers after Meesho changed its strategy, selling directly to customers in 2021. Consumers can now order same products at discounted price on Meesho app compared to the price Pooja offered which included her margins.

She’s now being confronted by angry friends and relatives who feel cheated with her. “Many people have asked me why I was charging a commission,” Pooja said. “It’s been embarrassing and I am not able to face them now.” 

Direct Sale 

Meesho is planning to expand its direct sales from 75% to 97% in the next 2 years. This is regardless of the company becoming a leader in the social commerce division, raising funds from big names such as Naspers (now Prosus) and Facebook (now Meta), among others.

“When Meesho started 6-7 years back, the [ecommerce] market was influenced by Flipkart and Amazon,” said Satish Meena, a former analyst with Forrester. “For Meesho to raise funds in that structure, they needed a unique story.

At the time, social commerce was growing very antagonistic in the Chinese market, so social commerce seemed like a good story to sell.”


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