Improve the Average Order Value at Meesho by 5%

Product Improvement Question: You are a PM at Meesho. How would you improve the Average Order Value of Meesho by 5%

Describe the Product

Meesho is a leading Indian social commerce platform that enables millions of users—particularly in Tier 2+ cities and rural areas—to buy and sell products online at affordable prices. Designed to make e-commerce accessible to the masses, Meesho offers a low-cost, mobile-first shopping experience with zero commission charges for sellers and deep value for end consumers.

Available as a free app on Android and iOS, Meesho serves both individual buyers and resellers (especially homemakers and first-time entrepreneurs), allowing them to discover and promote fashion, beauty, home decor, kitchenware, electronics accessories, and other long-tail SKUs directly from suppliers. Resellers can share catalogs on WhatsApp, Facebook, and Instagram, place orders on behalf of customers, and earn a margin on each transaction.

Key features include:

• Zero-commission selling model (for small businesses)

• Cash-on-Delivery (COD) and secure digital payment options

• Reseller tools like catalog sharing, price setting, and order tracking

• Logistics and returns support, even for remote pin codes

• Personalized feeds and flash sales to drive engagement

• Multilingual support to cater to India’s diverse user base

Meesho’s core differentiation lies in ultra-low pricing, mass-market accessibility, and a community-driven growth loop powered by social sharing. The platform has over 140M+ app downloads, with a majority of its GMV coming from value-conscious, mobile-first users across non-metro India.

While initially built around reselling, Meesho has increasingly shifted toward direct-to-consumer (D2C) retail, evolving into a horizontal e-commerce marketplace competing with Flipkart, Amazon, and Jiomart—but optimized for Bharat. Its monetization strategy includes logistics fees, promotions, and potential monetization from sellers and advertisements.

Competitors include horizontal players like Flipkart, Amazon, and Snapdeal, as well as vertical or category-focused players like GlowRoad, Shop101, and DealShare. Meesho’s edge remains its low prices, social commerce DNA, and hyperlocal appeal.

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Clarifying Questions

Before proposing solutions, I’d like to ask some clarifying questions:

• What is the current Average Order Value (AOV)?

  • Assumption: AOV is currently around ₹300–₹400 per order, based on Meesho's value-driven positioning.

• Is the 5% improvement goal over a specific time period (e.g., month, quarter)?

  • Assumption: Target is to achieve a 5% AOV increase within one quarter.

• Which user segments contribute most to revenue—resellers or individual buyers?

  • Assumption: Individual buyers dominate in volume; resellers contribute disproportionately to AOV.

• Are there specific categories (e.g., fashion, home, beauty) driving higher or lower AOV?

  • Assumption: Fashion contributes highest to volume but may have low AOV due to single-SKU purchases.

• What is the average number of items per order currently?

  • Assumption: Most users buy 1–2 items per order.

• Any constraints on applying discounts—budget, margin, category exclusions?

  • Assumption: There is some flexibility to experiment with offers as long as margins are protected.

• Is there engineering bandwidth to run quick A/B tests on features like combo offers or cart incentives?

  • Assumption: Limited bandwidth; we need to prioritize low-lift, high-impact ideas first.

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Goal

Increase Meesho’s Average Order Value by 5% over the next quarter, by driving larger basket sizes and encouraging value-added purchases without hurting conversion or increasing returns.

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User Segments

1. Individual Buyers

• Price-conscious end users from Tier 2/3/4 towns and rural India

• Prefer low-cost items, COD, simple UI, and regional language support. Purchase 1–2 items per order.

• Contribution to AOV: Low to Medium

2. Resellers (Homepreneurs)

• Primarily women-led micro-entrepreneurs who resell Meesho products via WhatsApp, Facebook, and Instagram

• Look for profitable, trending products. Require flexible margin settings, bulk purchase options, easy order tracking, and reliable returns.

• Contribution to AOV: Medium to High

3. Value Seekers

• Deal-focused buyers, often from semi-urban areas, who optimize purchases during offers and sales

• Actively seek combo deals, flash sales, and coupon codes. Typically browse widely but convert only when value is maximized.

• Contribution to AOV: Medium

4. First-Time Online Shoppers

• New digital buyers with limited e-commerce experience, often influenced by peers or social media

• Require strong trust signals (product ratings, return policy, COD), typically start with low-value trial orders.

• Contribution to AOV: Low

5. Repeat Loyal Users

• Habitual buyers with 3+ orders per quarter and higher platform familiarity

• Expect personalized recommendations, saved preferences, seamless checkout, and occasional loyalty rewards.
  Contribution to AOV: Medium to High

6. Bulk Buyers (Offline Retailers)

• Small local shop owners or traders sourcing products for resale

• Prioritize margin clarity, consistent supply, tiered pricing, and simplified logistics for bulk orders.

• Contribution to AOV: High

Prioritized User Segment: Resellers (Homepreneurs)

Resellers are a strategic user segment for Meesho due to their potential for bulk ordering, repeat purchases, and organic growth via social selling. Improving their experience can significantly uplift Average Order Value (AOV).

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Pain Points

Considering the Resellers (Homepreneurs) segment, the following pain points would be relevant: