Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities (Img: Pinterest)
New Delhi: Meesho is strengthening its position in India’s value-commerce market by targeting price conscious shoppers in smaller cities, an audience that remains difficult for established e-commerce platforms to serve profitably. Despite competition from Amazon Bazaar and Flipkart’s Shopsy, Meesho’s combination of low-cost products, a broad seller network and an asset-light logistics model gives it a distinct advantage.
Meesho reported 274 million annual unique transacting customers in the first quarter of FY27, according to the report. Nearly 88% of its consumers come from outside India’s eight largest cities, highlighting the platform’s reach beyond traditional urban markets.
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Unlike conventional e-commerce platforms that often focus on existing online shoppers, Meesho has built its business around attracting new consumers seeking affordable products. Its discovery-led shopping experience also encourages impulse purchases, particularly in categories dominated by low-priced merchandise.
Meesho’s marketplace connects more than one million sellers, offering an extensive selection of largely unbranded products from manufacturers, wholesalers and small traders. Meesho has attracted sellers to its platform by eliminating commission charges and making online selling more affordable.
However, this advantage is no longer exclusive . Flipkart is extending its commission-free model, while Amazon has removed referral charges on certain budget-friendly items. As these benefits become more common, platforms are increasingly competing on delivery costs, customer loyalty and how effectively they help shoppers discover products.
Meesho’s Valmo logistics platform coordinates multiple third-party delivery partners instead of relying on a conventional, vertically integrated network. By operating without heavy infrastructure, Meesho can route orders through more affordable delivery partners, helping keep costs under control for low-priced products.
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For products priced around ₹265 per order, conventional delivery systems designed for premium merchandise can make profitability difficult. Amazon and Flipkart have significant logistics capabilities, but adapting them to value commerce requires a different cost structure.
Meesho earns the bulk of its revenue from fulfilment charges, while advertising could provide a more profitable income stream. The company may also boost earnings by offering sellers data insights and technology-based tools to improve their businesses.
Although Meesho has built considerable scale, sustained profitability remains a challenge. Its long-term success will depend on preserving its cost advantage, deepening seller engagement and converting growing transaction volumes into a financially sustainable business.
