Introduction
The fiercely competitive and quickly expanding Indian e-commerce market is seeing a new war. After years of battle with Amazon, Flipkart (owned by Walmart) is currently defending itself against a newer foe: Meesho, financed by SoftBank.
It is also said, according to the internal reports, Flipkart now has a team of employees dedicated only and only to Meesho’s whereabouts.
This is not to be believed but according to sources by Moneycontrol, “Flipkart has also informally asked third-party logistics service companies such as Delhivery, Ecom Express, and XpressBees, to cut down on their commitments to Meesho for handling eCommerce fulfillment services.” But there is no concrete proof of that.
Let’s Know in Detail what Flipkart and Meesho are up to.
Rising Meesho
Meesho was first launched as a social commerce platform in December 2015 by IIT Delhi grads Vidit Aatrey and Sanjeev Barnwal. Typically, this business model has a three-sided marketplace with a provider, reseller, and end user. The reseller purchases goods from the supplier and resells them using apps like WhatsApp.
Meesho began focusing on social commerce, but as its proportion of direct sales has increased, it is competing with companies like Flipkart and Amazon. Currently, it receives 25% of its revenue via resellers and 75% of its revenue directly from users of its platform. Major reason people are switching to sell on Meesho is to incur the loses they have had by selling on other platforms.
Why Only Flipkart is Falling?
Amazon and Flipkart have thus far controlled the Indian e-commerce market. They have succeeded in pushing out the majority of other e-commerce apps, like Snapdeal and ShopClues. Meesho, however, has the power to end this duopoly. And given that its market share is now in jeopardy, Flipkart is concerned about its rising prominence.
But why only Flipkart is getting affected with the same? If you see, Amazon does more than merely market products to us. The thing they sell is convenience. They sell solution to our problems.
Your phone is broken? Receive one in just one day. Amazon Prime is to your rescue. This service is not currently provided by any other e-commerce app in the nation.
Flipkart, on the other hand, is attempting to concentrate on offering both convenience and value. It is stepping into both boats while taking a drowning risk. In addition to seeking to attract clients in Tier-2 and Tier-3 cities by selling more affordable goods, it also tries to offer quick deliveries.
However, Meesho now considers this to be his home field. Additionally, Meesho can offer goods at a lower cost than Flipkart. Why?
Since the cost is the only thing it is concerned about. Customers are aware that although their products might not arrive right away, they will still be affordable and of high quality( ssssh. we are not sure of high quality though). Flipkart is unable to offer products at affordable prices due to its emphasis on ease of buying and fast deliveries. But flipkart is fighting it out.
Conclusion: New War Between Meesho and Flipkart is Here to Stay
If you are considering to sell on Meesho or to sell on Flipkart then remember the stakes are high. You my think Flipkart is drowning but you can not blindly choose to sell on meesho too, we know it is growing at fast pace. But to bring to your notice the return rate too is quite high because of poor quality of products and customer service provided by Meesho. The war is has just begun and both of all are here to fight.