Social ecommerce platform Meesho will reduce the payout cycle for sellers from 15 days to seven days. The company also said that it will not charge sellers for order cancellations – either manually or automatically.
Payouts is a payments made by an e-commerce marketplace to sellers after the sale happens on the platform.
“It was the first company in this country to offer a seven-day payment cycle.The “7-day payment” feature ensures that sellers get paid faster, which, in turn, helps them reinvest the money in their business. Being capital efficient is critical to their continued growth and success.”the company said.
After Automation and Self cancellation, seller were charged 2.5% of the order product’s price,per day delay untill cancellation.
Benguluru based e-commerce startup Meesho was founded in December 2015 by Vidit Aatreya and Sanjeev Barnwal.
The company said the new policy will not impact the customer experience as it has “built a robust data-backed model.”
“With the new “Zero Penalty’ and ‘Seven-Day Payment’ initiatives, we are confident we will be able to further accelerate the trajectory of seller acquisitions and success on Meesho, said, Lakshminarayan Swaminathan, vice president and general manager, supply growth, at Meesho.
Meesho is in the process of moving from social commerce to e-commerce as it tries to take on bigger rivals such as Amazon India and Walmart-owned Flipkart.
Around 70% of all Meesho sellers are from Tier 2 cities like Hisar, Panipat and Tirupur. The company said that within 2 years Meesho has seen a growth of 80% in its business.
Seeing this growth of Meesho, Flipkart and Amazon have also launched zero cancellation models on their platforms.