Seller Growth: Meesho shall benefit when its sellers are successful and continue to grow their businesses on the platform. By providing access to a network of service providers who offer services such as product photography, cataloging, advertising, and more, Meesho will help sellers improve their operations and increase sales.
Increased Seller Engagement: When sellers are connected with service providers who can address their specific needs, they are more likely to engage with the Meesho platform actively. This can lead to increased product listings, more competitive pricing, and better customer service.
Revenue Generation: Meesho may receive referral fees or commissions from the service providers in its network for facilitating connections between sellers and these providers.
Data and Analytics: By connecting sellers with service providers, Meesho can gain valuable insights into seller needs, pain points, and trends. This data can inform platform improvements and aid seller insights and services to the development of new seller-focused features.
Outside in perspectives
Table 73
Service
Area of coverage
Pricing
Seller LoD Feedback
Amazon
Flipkart
Size (proxy used - number of reviews of top 10 service providers)
Service
Area of coverage
Pricing
Seller LoD Feedback
Amazon
Flipkart
Size (proxy used - number of reviews of top 10 service providers)
Account management -
(day-to-day Seller Central operations - claims, feedback, customer comm etc)
Independent to location
Rs 1000+ per month
Mainly large scale sellers takes these services. Business owners who individually cannot manage their accounts (& do not have employees)
42482
Advertising Optimization -
(running ad campaigns)
Independent to location
Rs 1000-5000 per month
Important for new sellers who wants to learn. Or sellers who do not engage directly with their accounts (have managers)
27943
Cataloging -
(product listings, brand and category approvals, GSTIN exemption, correcting listing errors, and improve discoverability with right keyword and description)
Independent to location
Rs 10 - 50 per product
Important service for AZ because of multiple guidelines on listing. Avoids blocking, faster approval of catalogs uploaded
17882
Training -
(insights on tools, policies, and product)
Independent to location
Rs 1000-3000 per course
Mainly done by seller network
10306
Imaging -
(Product & model photoshoots, image editing)
Location Specific
Rs 10 - 60 per product
New seller takes these services. Or large sellers who cannot manage each product individually takes this service. Medium seller do image clicking themselves mainly
Accounting -
(reconciling payments, profitability analysis, and integrating accounting systems)
Independent to location
Rs 1000 - 4000 per account
Valuable when you are selling through multiple accounts on the platform. For eg listed same product at different prices through different accounts etc
3691
Taxes -
(Taxes and filings)
Independent to location
Usually done by CA
3111
Domestic shipping -
(First Mile)
Location Specific
Rs 10 - 90 per pick up
1029
Fullfiled by platform preparation -
(Packaging, labelling, bundling, Shipping)
Location Specific
Rs 2 - 100 per unit
959
Manufacturing -
(Source products from assessed manufacturers)
Independent to location
0
Excess inventory -
(can help you liquidate excess inventory)
Location Specific
0
Compliance -
(rules, regulations, and laws applicable)
Independent to location
0
Translation -
(removing language barrier)
Independent to location
Rs 2-5 per word
0
There are no rows in this table
LoD perspectives
There exists a latent need in seller ecosystem for different types of tools & services such as imaging, cataloging & account management. But these services become very valuable to sellers when they cater to all the platforms they do business in. Offerings for only platform will not solve seller problems exhaustively
Sellers do use this services in fragmented manners, most popularly through their own peers and friends networks. Eg - Seller gets his product photoshoot done at a friend’s studio; Sellers keep offline diary to track account services
Seller’s indicated low willingness to pay for services. However, this is counter to their actions where they do pay for services in un-organized market
Table 74
Question
Summary of responses
Question
Summary of responses
How do you track your order level accounting/ account management?
Seller keeps a physical diary to record transactions manually on a daily basis (sales & returns). Sellers tally payment mentioned on panel with their records and minor delta in the business is justifiable
A supplier was using a dashboard where if would upload an excel sheet and from which the software will extract the data. He was paying INR 500/Month and few other sellers were also using the same
One supplier requested to have P&L visibility as Meesho has high returns and everyday he has to calculate profit and loss.
How do you get photography done for your new catalogs?
MSME sellers copies images from other Ecommerce, pinterest etc and uses online picture editing tools such as picsart to edit photos themselves. Sellers experiment with changing model face, color, and background of the images.
In a seller hub (like Surat), there exists local options to get these images clicked. On average, sellers spend INR 200 per product for hanger based images and ~INR 500 to INR 1000 for model based images. They incur this higher price for each product. For color changes in the base product, they incur ~INR 50.
Resellers and smaller traders have expressed interest in trying this to differentiate themselves from competition if it aids in business growth. However, the willingness to pay for such services is <50% of market prices.
What are the account specific requirements you have where Meesho can support you?
Sellers wants good support system as FK, AZ and it should be free of cost, due to all the issues.
Sellers arewilling to pay for support manager who can handle ticket, provides manual intervention and quick support (for eg: catalog unblocking, account unblocking, solving returns & claims tickets, etc.)
There are agents who provide similar support at local base level and charge up to INR 4000/ month to handle one FK account
How do you do taxes and accounting?
Company CA/ Friends
There are no rows in this table
3P partner perspectives
General Information -
Several agencies offer a range of e-commerce services, most of these provide cross-functional services such as Account Management, Imaging, Cataloging, Advertising, graphic & content creation, account setup, promotions & deals upload, and customer support. etc. Overall, the services aim to assist e-commerce sellers in optimizing their presence and performance on these platforms.
Size of Seller Service providers/ agencies -
These agencies are typically affiliated with major e-commerce platforms like Amazon and Flipkart and cater to about 250-500 monthly sellers. Few large agencies handle over 1000+ sellers also.
Average size of these agencies is 25-50 employees. Few large agencies have 100+ employees. Generally, Employee : Seller ratio ranges between 1:8 to 1:30.
Operating Model & pricing-
Agencies operate on model similar to PAM. Once a sellers reaches out to the agencies - there is a mutual negotiation of TnCs, Payments. Post which they get assigned an Account Manager [AM] who is SPOC. Large scale agencies have specialist teams handling specific query for the seller (Seller engages with his AM, who in turn raises query to these teams), however small agencies train their AM to be Jack of all trades.
Pricing structures for a seller vary, with some agencies charging based on the number of services or a percentage of sales (2-5%). Ballpark pricing is Rs. 2500-4000 per month for availing all-round services.
Seller tools & services as Monetization Lever
Agencies do not pay for listing/ lead generation/ commissions on AZ/FK. The AZ/FK listing works on ranking algorithm and service providers aim to improve their ranks. Ranks are decided based on service's reviews & ratings.
Willingness to pay for listing/ lead generation on a similar provider network on Meesho is also low. Most of the leads generated are false, and seller's ROI on lead generation platforms is low. Hence, they avoid paying for lead generation/ listing.
Few agencies showed interest in paying for quality leads, however quality metrics have to be defined and measured accurately. For an agency, quality lead is a seller account that engages in business for >3months.
-Please find details of conversation with 14 different Seller Service providers/ agencies -
Excess inventory -
(can help you liquidate excess inventory)
Low
High
Low
6
Cataloging -
(product listings, brand and category approvals, GSTIN exemption, correcting listing errors, and improve discoverability with right keyword and description)
Rs 10 - 50 per product
High
High
High
Imaging -
(Product & model photoshoots, image editing)