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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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