Dropshipping in Kenya is just gaining ground, making it one of the best online business to start today. Since the market is still unsaturated, you can easily make profits as you will have little competition.
So, what is dropshipping? What do you need to set up this kind of business in Kenya?
Below, we go over this business model in detail, explaining what it is, the parties involved, and what you would need to set it up and make profits.What is dropshipping business?
Dropshipping is an e-commerce business where you create a virtual store to sell products online. The interesting bit is that you do not need to have the products you are selling in stock.
So, how will your customers get their products?
Once you have sold a product, your supplier will ship it directly to the customer’s doorstep. Your work is to give the proper address to the supplier and request them to deliver the ordered product on time.
The fact that no inventory is needed in this business means that you can start it will little or no capital. Your job is to find reliable suppliers, set up an online shop, and market it as much as possible to prospective clients.
You never have to worry about stock, packaging, and delivery. Better still, you can complete all transactions without ever having to leave the house since you do not touch the products.
The no inventory feature makes this business particularly friendly to those with limited capital. You may require a website, but you can still start your business without one and only make this addition once your business has grown.
More Advantages of Dropshipping in Kenya
- Low-risk business since you do not need to stock up the products you are selling. If a product is not doing well in the marketplace, you can easily remove it from your shop with little if any cost implication.
- Zero cost of employees for packaging products and associated logistics. You do the ordering online and wait for the supplier to organize delivery to the customer.
- Easy to do as a side hustle since your online shop doesn’t require much of your attention. Even if you have an 8-5 job, you can easily process the orders during your breaks.
- Opportunities are endless, and you can list thousands of products in your online shop. You can add more products as you learn the ropes and see what products are selling more in your shop.
The Dropshipping Business Model
There are three parties involved in a dropshipping business. There is the manufacturer(supplier), You, the retailer, and the customer.
The manufacturers make the products you have listed in your shop and sell them to you at wholesale prices. They also carry the inventory, ship products to your customers, and replace any defective products.
You, as a retailer, create a website or an online shop listing the manufacturers’ products. Your work is to select the products to sell, do detailed and catchy descriptions on your site, and market the products under your brand.
The products on your site should come with a price. Ensure that the price you set includes the cost of buying it from the manufacturer, shipping cost, and your markup or profit.
While the margins may be small, the goal is to sell as many products as possible. If you are selling on eBay and Amazon, a one-dollar profit may mean a lot since it translates to about Ksh 100.
Lastly, there are the customers, and this is anyone who buys products through your website or online site. Since the customers purchase products from you, they will contact you if the products are defective, delivery is not done as agreed, or any other problem arises.
You have to remember that it is your responsibility to ensure that your customer is satisfied. Ask for an honest review of the whole shopping experience and use the feedback from clients to improve your shop.
How to Start Dropshipping In Kenya
From the information above, it is clear that starting a dropshipping business is a good idea whether you are looking for a side hustle or want to explore online business opportunities in Kenya.
So, how do you start a dropshipping business?
1. Decide What Products to Sell and Where
First, you must decide on what products you want to sell. What is in high demand in Kenya? Do you want to sell to people in Kenya or other parts of the world?
If you do not have a website, you can choose to sell through e-commerce stores like Amazon and eBay. You also have the option to build your own website from scratch.
Both options are viable, but you will need a bit of capital to build a website and have it up and running. If you are starting with Zero capital, you are better off starting your e-shop with established platforms like eBay.
As far as deciding what products to sell is concerned, you are free to choose from the millions of products sold on these sites. You can go with products you are conversant with and have used before or simply search for the top-selling products in Kenya or whatever platform you are selling on.
2. Locate A Reliable Supplier Who Doesn’t Mind Shipping For You
This is often where most people getting into dropshipping in Kenya. Your suppliers will make or break your business, so it is wise to go with reliable ones that can deliver the right products on time.
Be sure to check on delivery time and the quality of the products before including them in your shop. If you realize that a supplier is slow or the quality of products is low, search for another one until you are satisfied.
3. Register With Your Suppliers For Dropshipping In Kenya
Once you have settled on suppliers, register with them, so they have details of your shop. The registration process is easy and straightforward, and the supplier will contact you if they need more information from you.
If you have listed many products in your shop, you have to register with different suppliers. You would be lucky to find one supplier who stocks all the products listed in your shop.
4. Advertise Your Products
You get to choose which marketing platform is ideal for your business. Social media, especially Facebook, is one of the best platforms to make money online in Kenya.
You can choose to sponsor a few ads on Facebook for a few dollars or create a fan page and slowly grow your following. You can also use Google Adwords.
In case you are a good writer or do not mind outsourcing this service, you can write blogs and include links to your online shop in the content. Make the posts as informational as possible since this is one of the easiest ways to convert leads into sales.
5. Contact Your Supplier Immediately A Customer Places An Order
Once you get an order, reach out to the supplier and immediately place your order. This means you have to check your mail regularly to see if you have any orders.
When filling out the order form, put your customer’s address under the recipient tab.
At this point, you will need to pay for the product plus the shipping cost. Most suppliers will require that you send the payment before dispatching the order from their warehouse.
The supplier will then ship the product directly to the customer.
Mostly, a seasoned supplier will tell you how long it will take to ship the product to your customer’s doorstep. The shorter the delivery time, the better for your business.
6. Do A Follow-up
It is always wise to do a follow-up and ask if the customer has received the ordered product and is happy. This is the only way to know if your supplier is holding their end of the bargain.
Your customer service will also determine the success of your business. One happy customer can earn you many more customers, so be proactive and do a follow-up for each sale that you make.
If you are using AliExpress or any other international supplier, you will get a tracking code that will help you monitor how the delivery is progressing. In case the goods are damaged, request the customer to send them back to the supplier for a replacement.
Drop shipping is one of the easiest ways of making money online in Kenya. Setting up the business is easy, and you can start with almost no capital.
Follow the above guide when starting your dropshipping business in Kenya, and you are guaranteed to succeed.
However, you must remember that success doesn’t happen overnight. You have to be consistent and work hard to grow your portfolio.
Add as many products as possible and price your products accordingly if you do not want to incur losses.