Meesho Business Model | Analysis on How Meesho Makes Money (2025)

Meesho, India’s leading social commerce platform, has completely changed how people buy and sell online. With millions of users and thousands of resellers, Meesho has made e-commerce possible for anyone with a smartphone. But ever wondered how Meesho actually makes money when it offers free listings, zero commissions, and low prices? In this article, we’ll break down the Meesho business model, its revenue streams, and how it sustains its massive operations in 2025, in simple language and step-by-step.

What is Meesho?

Meesho is a social commerce platform that allows users (mostly small business owners and homemakers) to resell products online using WhatsApp, Facebook, and Instagram.

Key Facts About Meesho (2025 Update)

💡 Pro Tip: If you want to start a Business but have too many doubts, connect with a Business expert from Boss Wallah for guidance – Check Out

How Does Meesho Work?

Here’s how the platform operates in simple terms:

1. Sellers list their products on Meesho’s platform.
2. Resellers choose products they like and share them on social media.
3. Customers place orders via the shared links.
4. Meesho handles delivery, returns, and payments.

Meesho Business Model (2025)

Business Type: B2B2C (Business to Business to Consumer)

Meesho connects suppliers (businesses) to resellers (intermediaries) who then sell to end customers.

How Does Meesho Make Money?

Meesho runs on a zero-commission model, meaning it doesn’t charge resellers for using the platform. Still, Meesho earns revenue through multiple smart channels.

Revenue Streams Explained

1. Commission from Suppliers (Indirectly)

• Though Meesho promotes “zero commission” for resellers, it charges suppliers a marginal commission (10–15%) per product.
• This is deducted before paying the sellers.

2. Shipping and Logistics Margin

• Meesho handles delivery using third-party logistics.
• It adds a small markup to delivery charges, thus earning a margin.

3. Advertising Services (Meesho Ads)

• Sellers can promote their products using “Meesho Ads.”
• Just like Amazon’s Sponsored Products, this becomes a huge revenue stream.

4. Data Monetisation & Analytics

• Meesho collects a massive amount of data on buyer preferences and seller behaviour.
• This data-driven insight is sold to brands and businesses to understand consumer trends.

5. Value-Added Services

• Services like faster delivery, premium listing, packaging, and customer support are offered at a fee to sellers.

Meesho’s Value Proposition

ALSO READ | Meesho Franchise in India: Cost, Process, Profit & More

Business Growth & Market Share

• Revenue in 2024-25: Estimated ₹4,000+ crore
• Market Share: Holds 60% of India’s social commerce market
• Daily Orders: 3+ million
• Most Active States: Uttar Pradesh, Maharashtra, West Bengal, Bihar

Meesho’s Target Market Strategy

Meesho’s success lies in tapping into Bharat—non-metro users who were left out of the e-commerce revolution.

Key Focus Areas:

• Women Entrepreneurs
• Rural & Tier-2 Markets
• Affordable Product Range (₹200–₹500 avg.)
• Regional Language Support

Challenges Meesho Faces

• High Return Rates: Around 15–20%
• Logistics Complexity: Serving remote areas
• Thin Profit Margins: Operating on low-cost SKUs
• Seller Quality Control: Difficult to regulate 1 M+ sellers

Noteworthy Point

Meesho became the first Indian startup to allow users to shop and resell without mandatory KYC or GST registration.

ALSO READ | Meesho Dropshipping: The Easiest Way to Start Dropshipping in India

Future of Meesho (2025 and Beyond)

Innovations:

• AI-Based Personalization
• Voice Search for Rural Users
• Meesho Capital: Small loans to trusted sellers

Upcoming Goals:

• Expansion into international markets (starting with Southeast Asia)
• Strengthening product quality control via automation

Summary Table: Meesho Business Model Snapshot

Need Expert Guidance?

Starting a business can be challenging, but you don’t have to do it alone! At Boss Wallah, our 2,000+ business experts are ready to provide valuable insights and guidance. Whether you need help with marketing, finance, sourcing, or any other area of any business, our business experts are here to help you succeed

Confused about Which Business to Start?
Want to start your own business but unsure which one to choose? Explore Boss Wallah, where you’ll find 500+ courses by successful business owners, featuring practical, step-by-step guides on starting and growing various businesses.
Find your perfect business idea today

Conclusion

The Meesho business model is a great example of how digital platforms can empower ordinary people to become entrepreneurs with zero investment. By smartly monetising its services, data, and ad tools, Meesho has built a sustainable, scalable, and socially impactful business. In 2025, Meesho continues to grow by staying true to its vision—“Empowering Everyone to Start Their Business.”

Frequently Asked Questions (FAQs)

1. What is Meesho’s business model?

Meesho follows a B2B2C model where it connects suppliers to resellers who sell to customers.

2. Is Meesho really free for resellers?

Yes. There is no fee to join and no commission charged to resellers.

3. How does Meesho earn profit?

Mainly through supplier commissions, logistics margins, and advertising services.

4. Can I earn money using Meesho?

Absolutely. Many resellers earn ₹10,000–₹50,000/month depending on their efforts.

5. Does Meesho handle delivery and returns?

Yes, Meesho takes care of logistics, returns, and payment settlement.

6. How much commission does Meesho take from sellers?

It varies between 10% and 15%, depending on the product category.

7. What are Meesho Ads?

A feature for sellers to promote their products by paying Meesho for higher visibility.

8. Is Meesho only available in India?

As of now, yes. But plans for international expansion are underway.

9. Who are Meesho’s competitors?

GlowRoad, Shop101, and the Amazon Reseller Program are top competitors.

10. What are the biggest benefits of Meesho?

• Zero investment business
• No inventory or shipping hassle
• Available in regional languages
• Easy withdrawal of earnings