Meesho is an Indian social commerce platform – the first of its kind that was launched in India in 2015. Akin to ecommerce platforms, this one enables physical business owners to sell their inventory online via social channels like WhatsApp, Facebook and Instagram.
Meesho, in the four years of its operation, has garnered extreme popularity among small business owners across the country, especially to the likes of housewives, artisans, handicraft sellers, and the likes. So much so that Meesho’s founder Vidit Aatrey, in an interview with Y Combinator commented that 75% of the total sellers in the app comprised housewives.
While this is certainly encouraging, sellers also require an investment with regards to making their products available on the app’s selling platform. The availability of online seller loans has addressed this requirement of small business owners and helped them to put up their products on Meesho for selling.
However, before delving further into avenues to avail funding for online selling, let us first take a look at how individuals can sell their product through Meesho, and the investment required to initiate it.
The Process to Start Selling on Meesho –
Meesho offers business owners an opportunity to reach out to a wider customer base through various social networking platforms. To begin selling on this social-commerce platform, you will be required to provide the following information –
- The GST Identification Number for your business
- Bank account details
- PAN card details
– and thereby fill out the requisite details required by the website for registration.
Once registered, you can begin selling your products via Meesho in an organised manner, involving the steps described below –
- List products on the app
The first step to start selling through the app is to list your products on it. In this respect, you can avail the assistance of Meesho’s customer care to ensure maximum visibility for your products.
- Start receiving orders
You will start receiving orders as soon as the products go live on the app, and Meesho’s resellers share them on different social media platforms. It allows you to reach out to a wide customer base, which would have otherwise been difficult for home-based and small business owners.
- Logistics are handled by Meesho
The best part of selling through this app is that they pick up and deliver the products to customers through their logistics partners. You will only have to incur the charges for packing your products for safety while handling so that they don’t get damaged during delivery.
- Receive the amount earned
After any of your products are sold, the amount earned is directed to your registered bank account, within a few days of the order getting shipped.
Thus, the process to sell your product through Meesho is extremely convenient and hassle-free. It has, especially, helped thousands of homemakers across the country to start their businesses from home and sell their products online.
Nonetheless, selling on Meesho involves a few associated charges that you will have to bear out of your own pocket. This is where online loans enter the picture.
What are the Charges Associated with Selling Products through Meesho?
Meesho charges business owners for selling their products through this platform on a commission per product basis. While logistics for using this platform are free, sellers are required to pay about 15% of each of their product’s sale value as commission to Meesho.
Based on the volume of sales, it can be quite a significant amount, and the only way to generate optimal profit through Meesho is to increase the supply of your products to the platform and consequently boost sales. To do so, you can avail online seller loans that will allow you to scale up your business efficiently.
In this respect, raising funds through a gold loan can be the most convenient option for its quick and easy availability as a financing option.
Take a look at the benefits it offers!
Avail Easy Financing for Your Business through a Gold Loan
With the emergence of digital lenders like Rupeek Fintech Pvt. Ltd., availing gold loans have become easier in the last few years. Since these loans do not impose stringent eligibility criteria, they can be availed by all, like housewives looking to start selling their home-made products online, small artisans or anyone else.
Some of the notable benefits offered by gold loans include –
- A high loan to value (LTV) ratio
A gold loan is valued by utilising the formula given below –
Gold value = Net weight of gold X per Gram Rate X Purity
It gives the value of gold per gram, against which LTV is calculated as per RBI directives. LTV or loan to value ratio is the percentage of gold’s market value a lender can provide as a gold loan. Rupeek offers the highest LTV against your gold, allowing you to avail the maximum loan amount.
A high per gram value thus means if you own gold ornaments of considerable value, say Rs. 5 Lakh, with your lender providing an LTV of 75%, you can raise funds of up to Rs.3.75 Lakh.
- No end-use restrictions
These are secured loans which can be utilised to finance any requirement. It can be used as online seller loans, or to scale up a business production and even be utilised to pay the fee for acquiring GSTIN. The no end-use restriction feature thus widens the scope of its utility for your business.
- Doorstep loan facility
Rupeek offers the benefit of availing their gold loan from the comfort of your home as a first-in-market initiative. To avail the loan, you will simply have to apply through their app or website. They will then appoint a loan manager, who will visit your house for the gold valuation and KYC registration process. After these are completed, and your loan approved, the amount will be disbursed to your bank account. The entire process takes only within 30 minutes, thus ensuring quick financing.
- Guaranteed security of your asset
These loans not only assure that there is no erosion of your asset’s equity; the lender also takes all necessary steps to ensure protection of your gold. Once your gold is collected by the loan manager, it is transported in a GPS-trackable bag for safety. It is then stored in the nearest partner bank’s safety vault and is removed only when the loan tenure is over, to hand it back to you after complete repayment. Also, during this period, the pledged gold is insured for additional safety.
- Convenient repayment terms
Unlike other financing options, these online seller loans against gold have convenient repayment options, wherein you will need to only pay the interest amount each month, instead of an EMI. The principal is repaid through a bullet payment, at the completion of the loan tenure. You can also enjoy flexibility in choosing loan tenure, which comes in periods of 3 months to 6 months, and can be extended to another 6 months.
Apart from these, Rupeek’s gold loan does not require borrowers to have a high CIBIL score, making it easy for first-time borrowers to avail the loan without hassle. Those looking to start selling their products through Meesho can thus turn to gold loans to finance their online selling business with ease.
