Meesho vs Flipkart: Which Marketplace Is Best for Zero Commission Selling?
The capacity to sell products through online channels experiences a rapid transformation because of India’s expanding eCommerce industry, which primarily operates through Meesho and Flipkart. The current debate about which platform enables better profitability and business growth for merchants stems from their demand to sell products without paying commission fees. The comparison in this blog will help you make a decision between launching an eCommerce business and improving your current eCommerce operations.
Understanding the Zero Commission Business Model
The traditional route that has been followed by many other marketplace companies is charging 10% to 20% (or some variation) across all of their categories. However, this also meant sellers lost out on the total gross margin from their sales. Meesho took advantage of this situation, allowing sellers to sell their products without having to pay any commission and allowing the seller to retain 100% of the gross margin from each transaction.
Recently, Flipkart adopted this model (to an extent) by offering 0% commission on all products priced below ₹1,000, thereby targeting the budget seller segment and Micro Scale Medium Enterprises.
Meesho has proven this new model to be successful; however, it isn’t necessarily a true representation of the industry’s market dynamics. While it may be “zero commission,” it is not necessarily “zero cost” to obtain your desired return on investment.
Meesho Seller Account – Pros and Cons:
Utilizing Meesho’s seller platform is a seamless transition for many first-time sellers or small businesses reselling their products. Together, there are many key benefits to using Meesho compared to any other reseller account.
Meesho resellers can take advantage of the following site benefits:
- No commission across all categories;
- No registration costs or listing fees;
- No fees for the payment gateway and/or COD;
- An easy and simple process for becoming a member of Meesho.
Additional Costs To Consider:
While Meesho offers no commissions, sellers have the following costs associated with their sales:
- Higher shipping to the customer (typical cost increase 15%-20%).
- Fees for handling returns.
- Fees for advertising for visibility.
Overall, the total cost of selling could be in the range of 10%-15% of the sales price when adding in the costs associated with logistics and promotions.
Who Is the Best Fit?
- For New Businesses that want to start with lower-risk, lower-investment,
- For sellers looking to target the tier 2 & tier 3 business markets,
- For sellers who have low ticket prices, fast-moving products (like fashion, home decor, and accessories).
Features and Benefits of Flipkart Account Management
A well-thought-out Flipkart account management plan by sellers can potentially provide infinite growth/profit opportunities because of Flipkart’s size and warehouse capacity.
Advantages of Using Flipkart Account Management:
- Unlimited customers throughout India,
- Excellent logistics and delivery network,
- Enhanced trust and brand image,
- Extensive seller analytics and tools available.
Commission Fee Structure for Sellers:
- Traditional: Sellers Pay Between 5% And 25% Commission Based On Product Category
- Current: Commission = 0% For Items Priced Less Than ₹1,000
Other Applicable Charges For Sellers:
- Administrative Fixed Charges Per Order
- Shipping / Collection Charges
- GST on Services Provided By Flipkart
Who Is The Best Fit?
- Established business and seller
- Seller who’s selling high-value / premium products
- Businesses looking to achieve growth through developing a nationwide presence.
Comparison Between Meesho & Flipkart
Commission & Fees:
- Meesho has no commission; there are other costs.
- Flipkart has partial no commission (under Rs 1k), otherwise has an engineered fee structure.
The winner is Meesho (Pure No Commission)
Profit margins:
- Meesho has lower margins due to intense price competition
- Flipkart has higher margins for premium products.
The Winner Is Flipkart
Easy to Sell:
- Meesho has an extremely easy seller on board
- Flipkart requires a proper catalog with priced strategies & optimised products.
The winner is Meesho
Customer Base & Reach:
- Meesho is strong in tiers 2/3 & price-oriented customers
- Flipkart has a nationwide reach and registered trust and credibility with data-tied customers.
The Winner Is Flipkart
Logistics & Support
- Meesho has limited control over logistics
- Flipkart has a strong supply chain and improved fulfilment systems.
The Winner Is Flipkart
Which Platform To Select?
- Select Meesho if you want to start selling with no investment, test products and/or resell, and sell products very cheaply and in bulk (i.e., less than 1 sale per month).
- Select Flipkart if you want to create a larger, scalable online business with Flipkart’s management and optimisation, and buying and selling products in the medium to high value ranges.
Conclusion:
Both platforms provide excellent opportunities, but can accommodate different types of sellers.
Meesho is a good fit for new sellers who want a complete no-cost way to get started with eCommerce. On the other hand, Flipkart is better for experienced sellers who want to grow their businesses, obtain good profit margins, and build a brand.
Frequently Asked Questions:
1. Is Meesho completely free for sellers?
At this point, Meesho does offer zero commission & no registration fees, but there may be costs involved in how the seller ships and handles returns.
2. Does Flipkart charge commission on all products?
The answer to this question is No. Currently, Flipkart does not charge commission on products priced under ₹‐1,000 but will charge different fee amounts based on how the product is categorized & on top of that, they also charge for shipping + a fixed charge.
3. Which platform is better for beginners: Meesho or Flipkart?
Meesho is a good choice if you are new to selling because it is easy to get started (registering), as they do not require any upfront investment. Flipkart, however, is a better option for sellers who are ready to expand their business, so they have to focus on developing & executing a solid account management strategy before they start selling.
