Why Meesho gives lower prices than Amazon or Flipkart?

Meesho, Amazon and Flipkart

Meesho, Flipkart, and Amazon are all eCommerce online stores that sell products directly to their customers and deliver products to their doorsteps.

But one question remains that why are products available at cheap rates on Meesho as compared to Amazon or Flipkart.

Well, that’s what we are gonna discuss today in this blog post.

How can Meesho give products at comparatively lower prices than Amazon or Flipkart?

1. Quality of products.

The quality of products that you would find on Amazon or Flipkart is much better than the quality of products you find on Meesho and this is one of the biggest reasons for cheap price products available on Meesho.

On Amazon, the minimum rate you can find for a t-shirt is RS. 500 but if you look at the t-shirt price on Meesho, you may find t-shirts that will cost you only Rs. 300 or 350.

So, to put it simply, the quality that amazon and Flipkart provides is pretty high quality

2. Business Model

The business model that Amazon, Flipkart, and Meesho focus on also impacts the price that they charge for their products.

Amazon and Flipkart’s business model is to sell products to the end consumer and make consumers purchase products over and over by giving them the best possible services.

Whereas if we talk about the Business Model of Meesho, they don’t sell products directly to the customers and instead they help other people to sell products and make commission also know as Reselling or Dropshipping.

But this Reselling model will not work unless the prices are not cheap because the resellers also have to make some commissions while selling the products and the only way he can make a good commission is by increasing the price of the product.

So to make sure that prices don’t go overboard, Meesho tries to keep prices lower so resellers can take good commission by selling the products at a reasonable price.

3. Easy Entry

Before you start to sell on any platform, you have to register yourself with that platform and if I talk about Amazon or Flipkart, it’s a little difficult to be registered on Amazon and Flipkart than on Meesho.

You can easily get registered on Meesho and start selling your products, this factor also affects the price of products as many suppliers can enter the market and increase competition.

4. Competition

We have already discussed this point in No. 3 but if I explain it briefly then the more seller available on a platform the more competition there will be.

Since Meesho has a very huge number of sellers and supplier the competition for prices and products keep increasing and sellers are forced to push the price lower and lower.

5. Price decided by customer Behavior

Amazon and Flipkart are known for selling High-quality products and suppliers cannot sell products that are cheap in quality otherwise they will get fewer stars and reviews and it will impact their ranking on Amazon or Flipkart.

But in Meesho since people are already aware that the quality of the products will not be that great so they accept even low-quality products because of cheap prices.

Conclusion

There are many reasons why Meesho provides products at a cheap rate if compared to Amazon or Flipkart. But these are the 5 most important reasons that I have covered in this blog post.

Leave a Reply

Your email address will not be published.