How Does Meesho Do It? Ultra-Low Prices Amazon & Flipkart Can't Match
Items on Meesho are available at prices that e-commerce giants like Amazon and Flipkart can't match. So, how are such low prices possible for Meesho... what's its business secret?
Meesho targets India's middle class with ultra-low prices, something giants like Amazon can't do. How is this possible? Let's uncover Meesho's business secret.
A LinkedIn user explained how Meesho's prices are so low. For a ₹269 T-shirt, costs are ₹150 (mfg), ₹50 (marketing), and ₹50-80 (logistics). So where's the profit? Here's the secret.
90% of Indian consumers prefer low prices over fast delivery. Meesho targets this group, cutting transport costs to make a profit, unlike the 10% who want speed over price.
Meesho avoids costly air transport and warehouses. It uses software to find empty returning trucks for cheap shipping, cutting delivery costs from ₹80 to ₹30. This is their secret.
The secret is logistics. By keeping delivery costs low, Meesho turns a challenge into profit. This asset-light model is a proven success.
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