Kenya boasts the best infrastructure for a dropshipping business. We have access to fast and stable internet and the connectivity is countrywide. Additionally, the reliance on the smartphone as the prime gadget for internet access is growing everywhere in the country.
Kenyans became accustomed to online shopping during the Covid-19 pandemic. Thus, reaching buyers who might want to purchase your dropshipped goods is pretty simple in Kenya. If you need an international business you can run from home, we can advise you to explore dropshipping. This article explains how this business model works locally.
Why You Should Try Dropshipping in Kenya
Kenyan residents can begin and run a thriving dropshipping business if they know what to do. If you are new to the dropshipping business model, learn more about it here. The top reasons to try this business model include:
- The local network’s stability and coverage are good to go.
- Thousands of Kenyans spend hours on social media pages and some local dropshipping stores like Jumia.
- Kenyans are familiar with online shopping and their level of confidence and participation is growing.
- Many people have smartphones, simplifying how to get in touch with potential customers and suppliers.
- The most reputable and trusted third party payment gateways like PayPal, Skrill, and 2Checkout are accessible in Kenya.
- You require a small initial investment to start a dropshipping business in Kenya.
- One does not require a physical shop, warehouse, or factory to become a successful dropshipper. Your supplier handles production, warehousing, packaging, and shipping.
- You can get as many suppliers as you can handle without worrying about handling supply chain activities.
How Dropshipping Works in General
Dropshipping businesses are not alike because sellers have to choose unique product niches. However, all dropshipping businesses follow a typical start-up procedure:
- Locate a droppshipping supplier and sign an agreement with them.
- Add the supplier’s products to your ecommerce store and advertise them on social media, Google, and other sources.
- Receive an order from an interested customer.
- Send an order confirmation to the customer.
- Forward the new order to your dropshipping supplier. Deduct your cut from the buyers’ payment and send the rest to the supplier.
- The supplier packages and ships the customer’s order.
- Your customer gets their product and hopefully spreads the word about you.
Best Platforms for Kenyans Looking to Dropship
Before choosing the best dropshipping platform to use, first pick your audience. Do you want to sell to Kenyans and perhaps East Africans? If not, do you plan to penetrate the global markets in North America, East Asia, and Europe?
As you are about to take your baby steps in dropshipping, it would be best to start locally and move internationally later on. Since your target audience is local shoppers, aim to build your business on an existing platform. Here are your two choices:
Use a Self-hosted E-commerce Content Management System
If you can invest in a self-hosted dropshipping website, your best CMSs are WordPress, Shopify, BigCommerce, and Magento. Each CMS integrates easily with third-party apps and plugins for adding products, listing products, and shipping.
For instance, WordPress(WooCommerce) offers the AliExpress and Alidropship plugins. Shopify has its own share of plugins and apps for the carrying out the same tasks. Once you pick one of the content management systems shown above, check its unique apps for creating your online store.
Add Your Store to a Developed Marketplace
Building a self-hosted ecommerce store with a CMS can be a hard process if you have poor technical skills. An alternative way to start your dropshipping store is to host it on an already developed marketplace. For instance, you could host your store on Jumia alongside several other online stores.
Numerous people in Kenya already shop from Jumia. If you place your store there, your dropshipping business might take off faster. A Jumia dropship store may have low profits but it is a less risky venture for a novice like you. One thing we must mention is that you will require your KRA tax registration certificate.
How to Dropship with Shopify
If you want to start big, you can pick your target audiences from all over the world. To serve these audiences, you must create a self-hosted store with a CMS like Shopify. This platform works best with most Kenyan dropshippers because it is easy to set up and use. Here’s how to do it:
Sign Up for a New Shopify Account
Visit Shopify website and create a new account. Follow easy guidelines like providing personal details and business information.
Select a Theme
Shopify is perfect when it comes to themes. Several of them are available, allowing you to select the best one for your dropshipping store.
Customize Your Web Store
If your business has a logo, add it. Additionally, customize the store by making new product categories, setting up the navigation, and writing crucial web pages like ‘Contact Us’ and ‘About Us’.
Find and Install Your DSERs
Explore the Shopify App Store and locate the most suitable Dsers. This is a dropshipping tool by AliExpress that you can connect with your Shopify online store.
Sync Your AliExpress Account
AliExpress is the best supplier for most Kenyans. Assuming you have an account with AliExpress, the next thing is to link it to your Dsers. After this, you will import goods from AliExpress to your new Shopify store very fast.
Import Goods
The Dsers you choose above will now help you add products from AliExpress to your Shopify store. Import the best products in your preferred niche.
What is the cost of starting a Dropshipping business in Kenya?
Dropshipping is generally a low cost start-up venture in Kenya. Depending on how you decide to host your online store, you can incur higher or lower costs. If you want to start a Self-hosted online store using a CMS, consider these costs:
Buying a website domain
Typically, you will purchase a domain name for $5 to $25+ dollars per annum.
Web Hosting Fees
Several webhosting companies exist, including Bluehost, Namecheap, Hostgator, etc. Their cost of hosting per month ranges from $5 to $80.
Marketing costs
After setting up a dropshipping store, you should set up a suitable advertising budget. The correct rates will depend on the methods of advertising you select. You will pay more to advertise a highly competitive keyword or search term.
Order Sampling Costs
After choosing your product niche, you might want to buy some sample orders. Most suppliers will let you sample their goods at a discounted price. Still, this is a cost you should consider before starting a dropshipping store.
Cost of Software Tools
You might spend a range of ten to two hundred dollars on software tools. For instance, you need to use keyword research tools, product sourcing apps, etc.
How to Select the Best Dropshipping Supplier
To help your Kenya Dropshipping store grow faster, you must choose the best suppliers first. By so doing, you can prevent issues that could ruin your customer support service, such as delayed deliveries. A few tips you can focus on when choosing your Dropshipping supplier include:
- Avoid finding a supplier through a middleman. Contact them directly.
- Visit a Dropshipping supplier’s online store to find out if they are reputable. Focus on a supplier who provides their contact details and a detailed company profile.
- Check if there are customer reviews about a supplier on the internet. Read these reviews to know other sellers’ experiences.
- Ask the supplier to send you some product samples at a fair cost. This will help you check how fast they ship products and whether the quality is top-notch.
- Test the supplier’s customer support service by making a call, clicking the live chat tool, and submitting an email or a ticket.
- Go for a supplier that provides fraud protection, shipments’ tracking numbers, and a user-friendly dropshipping agreement.
FAQ
What is dropshipping in Kenya?
Dropshipping is a business model that lets you list products from different suppliers on your web store without managing an inventory. When you get an order from a Kenyan shopper, for instance, just forward it to your supplier. You use the buyer’s money to order their product from the supplier. Hence, a dropshipping business based in Kenya is cheap to start and run.
Who are the crucial parties involved in a dropshipping business in Kenya?
A local dropshipping business requires a seller, dropshipping supplier, and customer.
What worries will you avoid when dropshipping in Kenya?
The owner of a dropshipping business in Kenya shouldn’t worry about managing a warehouse, packaging products, shipping products, tracking inventory, or tackling returns or refunds. Additionally, you do not need to order products endlessly while managing the stock levels.
Open Your Dropship Store Today
Dropshipping is a viable online money-making business idea for Kenyans. Some people are already dropshipping China-made and making a good fortune in Kenya. Since you do not need to handle the products or track stock levels, you can start dropshipping with a small capital. Follow the advice in this article when creating stores, picking suppliers, etc.
Have you attempted to start a dropshipping business in Kenya? What benefits and challenges have you noted? Let us know in the comments section below.
