hi everybody mensah brands is one such startup that has taken the indian startup ecosystem by surprise in just six months this company raised NUMBER_TOKEN million dollars to become the fastest growing unicorn in indian business history in these six months mensah has already acquired NUMBER_TOKEN consumer brands like villain and category and in the month of october itself these brands seem to have hit a growth of NUMBER_TOKEN percent and NUMBER_TOKEN respectively and what is even more mind blowing is that while every other startup in india is engaged in a cash drain incurring millions of dollars of losses mensa has claimed to become profitable within these six months itself the question is what exactly is mensa brands all about how does their business model work and most importantly as entrepreneurs in the indian startup space what are the opportunities that mensa brands is creating for small scale entrepreneurs like you and me this video is brought to you by cuckoo fm but more on this at the end of the video the answer to this question lies in a new age business model called the thracio model this name became popular because of the meteoric rise of an american startup called thracio trasi was a company that was founded in NUMBER_TOKEN and within just two years it hit a billion dollars in valuation to become one of the fastest growing unicorns in the world the question is what do they do and how does the business model of tarsio work so let's start from the basics if you look at the amazon marketplace you will see that amazon operates through two types of sellers first party sellers and third-party sellers in case of first party seller relationship if amazon understands that your product is doing insanely well amazon itself invites you directly to establish you as a first party seller and this means that you sell your products directly to amazon and then amazon sells those products to customers taking care of everything from shipping product details listing pricing and even returns your role as a vendor is just to fulfill the purchase order send by amazon and ship the products to amazon basically you just make your product and let amazon sell it and pay you whatever amazon thinks is best whereas in a third-party relationship with amazon anyone and everyone can sell on amazon's marketplace and this way you get way more control over your operations in this arrangement you sell your products directly to the consumers on the amazon marketplace but the catch over here is you have to take care of everything starting from your product listing advertising pricing and even logistics and returns and in order to make this process a little bit easier amazon offers something called amazon's fulfillment service that is called as fulfilled by amazon or fba this is a shipping program to send your products to the customers through the logistics of amazon this is what you call as the direct to consumer model and you know what guys in the past NUMBER_TOKEN years amazon's third party sellers have done so well that in NUMBER_TOKEN only three percent of the gross merchandise sales came from third-party sellers but as time passed the contribution of the third party sellers accelerated at such a pace that as of NUMBER_TOKEN these third party sellers made up NUMBER_TOKEN of amazon's gross merchandise sales which means what amazon's third party sellers contributed more to amazon than amazon's own first party sellers this is how because of the visibility and accessibility of amazon even people like you and me have been able to sell our products across the country and according to rough estimates close to NUMBER_TOKEN NUMBER_TOKEN of these third party sellers make more than one million dollars in revenue now although cumulatively it looks like amazon third-party sellers are doing very well if you look at the on-ground reality it is actually
START_SPONSOR_TOKEN this video is brought to you by cuckoo fm but more on this at the end of the video END_SPONSOR_TOKEN