Chapter Objective

Pricing is the single biggest factor that decides:

• Whether your product sells or not
• Whether you make profit or loss
• Whether Meesho promotes your listing

This chapter teaches you how to price smart, not cheap — so you win orders consistently while protecting your margins.

✅ What You Will Learn

• How Meesho pricing works
• Understanding Buy Box & price competition
• Complete cost breakdown on Meesho
• Profit calculation formula (simple & advanced)
• How to undercut competitors without loss
• When to increase price & when not to
• Common pricing mistakes beginners make

📚 Topics Covered

• Meesho Buy Box logic
• Cost components explained
• Shipping & commission impact
• Margin planning
• Dynamic pricing strategy
• Price testing framework

🎯 Outcome

👉 You will confidently price your products to win the Buy Box and earn consistent profit per order.

5.1 Understanding Meesho Buy Box (Very Important)

The Buy Box is the default seller chosen when a customer clicks “Buy Now”.

🏆 Buy Box is influenced by:

✔ Competitive pricing
✔ Seller rating
✔ Low returns
✔ Fast dispatch
✔ Stock availability

👉 Lowest price doesn’t always win — the best value seller does.

5.2 Meesho Cost Structure Explained

Before pricing, you must know where money goes.

💰 Cost Components:

1. Product cost (supplier price)
2. Meesho commission
3. Shipping & logistics
4. Returns & RTO buffer
5. Your profit margin

❌ Ignoring even one = loss.

5.3 Basic Profit Calculation Formula

🧮 Formula:

Selling Price
– Product Cost
– Meesho Fees & Shipping
= Net Profit

📊 Example:

• Supplier cost: ₹180
• Selling price: ₹299
• Meesho fees + shipping: ₹70

Net Profit = ₹49 ✔️

👉 Target minimum: ₹40 per order

5.4 Advanced Pricing: Hidden Costs You Must Include

Many sellers fail because they ignore:

🚚 Returns (RTO)
📦 Damaged goods
📉 Discounts & promotions

💡 Safe Profit Planning Rule:

• Assume 10–15% orders may fail
• Add buffer of ₹10–₹20 per product

5.5 Pricing Strategy for Beginners (Winning Formula)

✅ Step-by-Step Pricing Method:

1. Check top 5 competitor prices
2. Set price:
   • ₹5–₹10 lower initially
3. Win Buy Box
4. Build ratings
5. Increase price gradually

📌 This is called penetration pricing.

5.6 When NOT to Lower Your Price

Never lower price if:
❌ Profit goes below ₹30
❌ Supplier quality is premium
❌ Returns are high
❌ You already have Buy Box

👉 Race to the bottom kills accounts.

5.7 Dynamic Pricing: Scaling Like a Pro

Once orders start flowing:

• Increase price during high demand
• Increase after positive reviews
• Reduce only if Buy Box lost

👉 Small ₹10 changes matter on Meesho.

5.8 Category-Based Pricing Benchmarks

(Based on Dhanshika Exports reseller data)

5.9 Pricing Mistakes to Avoid

🚫 Copying competitor blindly
🚫 Ignoring shipping slabs
🚫 Selling at zero margin
🚫 Over-discounting early
🚫 Not revising price

5.10 How Dhanshika Exports Helps with Pricing

Dhanshika Exports supports sellers with:
✔ Meesho-tested price points
✔ Stable supplier pricing
✔ Margin planning guidance
✔ Low-return product suggestions
✔ Seasonal pricing insights

We help you price for profit + scale, not just orders.

📝 Practical Task (Mandatory)

✔ Choose 3 products
✔ Calculate:

• Product cost
• Meesho fees
• Expected profit

✔ Compare with 5 competitors
✔ Set launch price
✔ Define minimum exit price

📌 Write this in your pricing sheet.

🧠 Pro Tip

“On Meesho, ₹10 price difference can change your daily order count — but wrong pricing can end your business.”

🔜 Next Chapter Preview

Chapter 6: Product Listing & Catalog Creation — Images, Titles, Descriptions & Conversion Tricks