Have you ever thought of creating your own online store/shop? Dropshipping business will help you achieve your dream of owning an online store with limited capital. By venturing to Dropshipping business you’ll be able to sell products to customers, set your product prices and market your brand. You don’t have to buy stocks, all you need is an order from customers and the products will be supplied to them in good time.
In this article, you’ll learn how to start a Dropshipping business in Kenya and how it works.
What is Dropshipping?
Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but rather transfers customers orders and shipment details to either the manufacture, wholesaler or another retailer, who then will ship the goods directly to the customers.
In simple terms, Dropshipping is a business where you can sell products to your customers without holding any inventory. When a customer orders products from your store, you forward the orders to the supplier and the suppliers will ship the products directly to the consumers.
How does Dropshipping business model work?
As Oberlo puts it, the three key players in Dropshipping business model are the manufacture, retailer (you) and the customers.
The manufacturer’s role in Dropshipping business model is to create products, in charge of the inventory, shipping products to customers on behalf of retailers, replacing defective products and restocking products to the retailers’ online store. The manufacturer sells products to the retailer at wholesale prices where the retailer(you) sets the prices you’ll sell your products to the customers.
On the other hand, the retailer(you) sells the manufacturer’s products on your online store under your brand. You’ll be responsible for choosing products to stock, marketing of your products, shipping costs and setting prices that will make you profit.
The customers buy the products directly from you the retailer and in case of any queries and complain of products they directly address them to you.
As you have seen above, Dropshipping is one of the best online business to venture and has minimum risk associated with it. It also requires minimum investment and reaps high profits when done right.
How do I start Dropshipping business in Kenya?
After reading and understanding what Dropshipping is, I know you might be wondering how you can start Dropshipping business in Kenya. I have listed down 4 simple steps to help you get started with Dropshipping.
1. Choose a Dropshipping Niche
This is the first step of starting a Dropshipping business in Kenya. A niche is a segment or a specialized focused area of a broader market that you will focus on to differentiate yourself from the competition. You don’t need to Dropship everything as this can lead to your failure in the business.
You can choose a niche like selling electronics, household items or outfits, you can even go deeper in your niche by specifically selling watches under electronics. This will easily build trust to your customers and you’ll be viewed as an expert in that niche provided your products are of good quality.
You should choose a niche/products that you are familiar with and have good profit margins for you to be successful in Dropshipping.
Guidelines on how to choose a Dropshipping Niche
- Choose a niche that you have interest, passions and have unique knowledge of the products you want to sell.
- Research your competition- don’t choose a niche that big brands have dominated as it will be difficult to compete with them.
- Ensure the niche you choose is profitable.
2. Find a Dropship supplier
Know that you have chosen your niche or products you wish to sell, the next step is to find dropship vendors that you’ll partner with to supply products to your customers. When choosing a Dropship supplier you should consider the reliability of the supplier, delivery time and support offered by the supplier.
Make sure the products from the supplier are of high quality and seek to partner with a supplier who’s the delivery time of products is short to ensure customers satisfaction. I recommend before choosing a supplier, you should first carry out the order yourself and try out the product yourself to see if you’ll be satisfied with it and if the product is of high quality. If satisfied, high chances are that your customers will also be satisfied.
Note that some of these Dropship companies will require a monthly subscription fee.
3. Choose a selling platform
After choosing a Dropship supplier and registering with them, you then have to choose your selling platform. You can start your Dropship business without having a site and opt for ready-made options to sell your products like eBay or Amazon. The advantage of this is that they are famous and it’s easy to get customers but also come with a limitation in that they charge you and also have stiff competition in that other seller selling similar products are also in the platform.
You can also decide to build your online store and integrate it with your Dropship supplier.
4. Market your products
At this point, you have found your products and have your online store, now is the time to market your products and create awareness for your brand. This is the most crucial part and will determine the success of your Dropship business. You need to come up with a marketing strategy that will generate leads and sales to your online shop.
Some of the marketing strategies you can use for your online store include Social Media advertising, influencer advertising, Google Ads and affiliate marketing.
Advantages of Dropshipping
- Less risk involved.
- It requires low initial capital required to start.
- A faster start-up online business.
- It’s scalable- easy to operate as the majority of works fall on the supplier.
Disadvantage of Dropshipping
- Shipping of products to your customers can be sometimes complicated.
- Less control over order fulfilment as you rely on other people’s stock.
- Poor customers service if your suppliers don’t deliver products on time.
In conclusion, I would say Dropshipping is the easiest online business that you can venture in. Following the correct steps and marketing strategies will lead to the success of your online store. Engage me in the comment section if there is anything you need clarification on pertaining Dropshipping.