The Economics of Social Media
WhatsApp as a Business Tool
How millions of Indian small businesses use WhatsApp to take orders, share catalogues and receive payments, and how Meta earns from business messaging.
For many Indian small businesses, WhatsApp is the main digital tool.
Uses
- Taking orders from customers.
- Sharing catalogues and photos.
- Payments through UPI links or WhatsApp Pay.
- Customer service.
WhatsApp Business
- The WhatsApp Business app (2018) gives small firms profiles, catalogues and quick replies.
- India is one of its largest markets.
Meta’s revenue
- Large companies pay Meta for the WhatsApp Business Platform to send messages like order updates and offers.
- Business messaging is a growing revenue source.
Why it works
- Customers already use WhatsApp daily.
- Low cost and easy to use.
Government use
Government services and banks also use WhatsApp to reach citizens.
Economic view
WhatsApp lowers transaction costs for small firms, helping them reach customers digitally.
The kirana's WhatsApp
A neighbourhood grocery store takes orders on WhatsApp, delivers within an hour and receives payment by UPI.
Thinking WhatsApp is only for chatting
It's a major business tool for small firms.
Key takeaways
- Small businesses use WhatsApp for orders and payments.
- WhatsApp Business launched in 2018.
- Meta earns from business messaging.
- It lowers transaction costs for small firms.
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