Chapter 1: Introduction to Online Reselling & Meesho Business Model
Chapter Objective
This chapter is designed to give you absolute clarity about online reselling and the Meesho business model. Before investing your time or money, you must clearly understand how Meesho works, how people earn, and what is realistic vs fake hype.
By the end of this chapter, you will know whether Meesho reselling is the right business for you.
1.1 What Is Online Reselling?
Online reselling is a business model where you sell products online without manufacturing them yourself.
You act as a middle partner between:
- The supplier/manufacturer, and
- The final customer
How Reselling Works (Simple Example)
- A supplier sells a product at ₹200
- You list the same product on Meesho at ₹299
- A customer places an order
- Supplier ships the product
- Your profit = ₹99 (minus platform fees, if any)
You do not need:
- A factory
- A physical shop
- Heavy inventory
- Large investment
This makes reselling one of the lowest-risk online business models in India.
1.2 How Meesho Works in India
Meesho is one of India’s largest social commerce platforms, designed especially for:
- Small sellers
- New entrepreneurs
- Homemakers and students
Meesho Ecosystem Explained
Meesho connects three key players:
1️⃣ Suppliers – Manufacturers or wholesalers who list products
2️⃣ Resellers / Sellers – People like you who sell these products
3️⃣ Customers – End buyers across India
Meesho handles:
✔ Technology platform
✔ Logistics & shipping
✔ COD collection
✔ Customer support (partial)
This allows beginners to focus on:
- Product selection
- Pricing
- Customer communication
1.3 Difference Between Reseller & Supplier (Very Important)
Many beginners get confused between reseller and supplier roles.
Reseller
- Does not manufacture products
- Sells listed products
- Focuses on marketing & pricing
- Can start without GST (under limits)
- Low risk, low investment
Supplier
- Manufactures or bulk sources products
- Needs inventory management
- Requires GST registration
- Handles quality & stock
- Higher investment, higher responsibility
| Reseller | Supplier |
|---|---|
| Low investment | Higher investment |
| No manufacturing | Manufacturing / bulk sourcing |
| Focus on selling | Focus on production |
| Beginner-friendly | Advanced level |
| Lower risk | Higher responsibility |
💡 Tip from Dhanshika Exports:
Start as a reseller first. Learn the market, understand demand, then move towards supplier or private label only when ready.
1.4 Why Meesho Is Ideal for Beginners
Meesho is one of the best platforms for first-time online sellers.
Key Reasons:
✔ Low Investment
You can start with as little as ₹3,000–₹5,000.
✔ No Technical Skills Needed
The app is beginner-friendly.
✔ COD (Cash on Delivery)
Indian customers trust COD, leading to more orders.
✔ Wide Customer Base
Meesho reaches Tier 2 & Tier 3 cities where demand is strong.
✔ Easy Product Listing
You can list products quickly without complex approval processes.
This makes Meesho a perfect training ground for online business.
1.5 Meesho’s Zero / Low Investment Business Model
Unlike traditional business models, Meesho allows you to start without holding heavy inventory.
Two Common Models:
Model 1: Zero Inventory (Drop-Based)
- Order is placed
- Supplier ships directly
- You earn margin
Model 2: Light Inventory (Recommended for Scaling)
- You keep limited stock of fast-moving items
- Faster dispatch
- Better ratings
Dhanshika Exports recommends starting with zero inventory and moving to light inventory once you identify winning products.
1.6 Profit Margins Explained (Reality Check)
Let’s understand profits realistically.
Example Calculation:
- Supplier price: ₹180
- Selling price: ₹299
- Shipping + Meesho fees: ₹50
👉 Net profit = ₹69 per order
Important Truth:
- Average profit per order: ₹40–₹120
- High volume = higher income
- Not a “get rich quick” scheme
Resellers who succeed focus on:
✔ Product selection
✔ Supplier quality
✔ Volume growth
1.7 COD vs Prepaid Orders
COD (Cash on Delivery)
✔ Higher order conversion
❌ Higher return (RTO) risk
Prepaid Orders
✔ Lower returns
✔ Better profit security
❌ Lower conversion in small towns
Smart Strategy:
Use COD initially to build orders and switch to prepaid-focused products once your store gains trust.
1.8 Myths vs Reality of Meesho Income
❌ Common Myths
- “Earn ₹1 lakh in 10 days”
- “No work, passive income”
- “Just upload product, money will come”
✅ Reality
- Meesho is a real business
- Requires time, learning, patience
- Profits grow gradually
- Supplier & quality matter a lot
Dhanshika Exports strongly believes in ethical, sustainable business, not false promises.
1.9 Realistic Income Expectations
Beginner (0–3 Months)
- ₹5,000 – ₹15,000/month
Intermediate (3–6 Months)
- ₹20,000 – ₹40,000/month
Advanced (6–12 Months)
- ₹50,000+ per month (with systems & scale)
⚠ Income depends on:
- Time invested
- Product quality
- Supplier reliability
- Customer satisfaction
1.10 Who Should NOT Start Meesho Business?
Meesho may NOT be suitable if:
- You expect instant income
- You don’t want to handle customers
- You avoid learning new things
- You don’t want to follow processes
This honesty saves you time and money.
