The Economics of Social Media
Social Commerce: Selling Through Social Media
How platforms like Meesho let resellers sell through WhatsApp and Facebook, how influencers drive shopping, and why social commerce suits smaller-town India.
Social commerce means buying and selling through social networks.
Meesho
- Meesho, founded in 2015, started by letting resellers, often women at home, share product catalogues with friends on WhatsApp and earn margins.
- It later became a marketplace focused on low prices and small-town buyers, and listed in 2025.
Influencer shopping
- Instagram and YouTube creators promote products with links.
- Live shopping streams.
Why it works in India
- Trust: people buy based on friends’ and creators’ recommendations.
- Vernacular content.
- Low prices for price-sensitive buyers.
Challenges
- Returns and quality issues.
- Fraud from fake sellers.
- Regulation of influencer disclosures.
Global
In China, social commerce through apps like Douyin is huge.
The home reseller
A homemaker in Jaipur shares sarees from a platform's catalogue with her WhatsApp groups, earning a margin on each sale.
Thinking e-commerce only happens on big shopping sites
Social networks drive much buying.
Key takeaways
- Social commerce sells through social networks.
- Meesho began with WhatsApp resellers.
- Influencers and live shopping drive sales.
- Trust and low prices suit smaller-town India.
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