Meesho 0% Commission True?
Meesho’s 0% Commission has been the biggest highlight for their company that has helped them target more people who want to start their online business and earn independently. You can learn more about how to become a reseller on Meesho here.
Meesho Commission and Service Taxes
We have all heard about how Meesho has a 0% commission rate, which is their biggest USP. But having said that, is it true that Meesho has a 0% commission rate because we all have seen their ads on different social media channels and television. But how do you find out whether they are deducting any amount or the kind of fee structure they have?
Indeed, Meesho does not charge any commission, but they have a service tax. They have developed a unique strategy in which the customer needs to pay a shipping amount instead of the seller. When the customer reaches the payment page, they are presented with the shipping charges. The GST added to the shipping charge is then applied to the seller’s settlement amount. TCS input credits and TDS amount are also deducted from the seller amount apart from their service tax.
What is margin in Meesho ?
Meesho has already gained popularity over the years because of its unique but straightforward strategy. There is no doubt that shopping websites and e-commerce stores have changed many people’s lives across the world. They have given opportunities to people who want to become resellers and add a decent margin for themselves. Meesho has done a similar thing whereby retailers can share their products in their community through WhatsApp and Facebook, or other social media platforms. They have to add the margin on top of the product price and the shipping charges and then disclose it to their buyers. Once the order is placed, the customer receives it within the next 3 to 4 days, and the margin of the profit is conveniently deposited to the re-sellers bank account.
Meesho Seller Profit and Commission Calculation
Meesho has already placed a popular strategy by which they do not charge any commission and let the re-sellers get the entire profit for themselves. If someone wants to become a reseller on their platform, they need to look for products they want to sell and spread the word in their community by using social media channels like Facebook, Instagram, or even WhatsApp. Once they start promoting the products, they will eventually find customers who will place orders. In this case, the seller has to price the product by adding a shipping charge and a profit margin. This number is then presented to the customer.
The margin that is added to the product goes to the seller. The commission is based on this margin, and the entire amount goes to the seller. Meesho does not charge any commission fee, which is why it has become so popular among the people in the country.
Delivery Charges on Meesho –
It is known that Meesho does not charge any commission from the supplier, and people can sell their products and make more profit. So the real question is, how exactly does Meesho make their revenue? The truth is pretty simple, and it is their delivery charges. Meesho handles the logistics part, and because of this, they have certain set delivery charges that the customer has to pay for.
The reseller does not have to worry about these charges and focuses on selling the products. On the other hand, the customer is presented with the price that includes delivery charges and the margin that the reseller adds. With this simple strategy, Meesho has successfully garnered revenue throughout these years.
Meesho Penalty –
Another fantastic feature about this platform is that it has no penalty. If a customer cancels an order, the reseller will not be charged for that. It is free, but it would not be counted in the bonus plan.
This makes the platform even more successful because retailers can sell their products peacefully without facing penalties.
There is no doubt that Meesho has become one of the best e-commerce platforms in the country and has encouraged millions of people to start their online businesses. They have come up with unique strategies that have helped them get millions of customers and resellers.
(H3) How much does Meesho charge for selling in India?
Ans: With Meesho, you can sell your products at the 0% commission and get your payments on time.
What is the Meesho penalty if I cancel an order?
Ans: You will not be charged if you cancel an order. It is absolutely free of cost and there will be no cancellation charges.
Is Meesho B2B or B2C?
Ans: Meesho primarily operates as a social e-commerce platform, thereby following a D2C model. The business model of the company can also be explained as a B2B along with being a B2C if we highlight the reselling opportunities that Meesho brings in!