The eCommerce market in Kenya is growing rapidly. Revenue is projected to reach US$3,212.00m in 2022 and US$5,210.00m by 2027. This growth is driven by the increasing number of internet users and the growing awareness of the benefits of online shopping.
In fact, according to a study by Mastercard, 79% of Kenyan Consumers are Shopping More Online Since the Start of the Pandemic.
As you can see, entrepreneurs have many opportunities to start and make money with an online shop in Kenya. To be successful, you need to offer a good selection of products, competitive prices, and excellent customer service. You also need to find a niche market that you can serve well.
To say the least, a lot needs to be done to get a chance to share that pie.
What is eCommerce?
Ecommerce, also known as electronic commerce or online shopping, is the buying and selling goods or services over the Internet.
It can be divided into business-to-consumer (B2C) and business-to-business (B2B). B2C eCommerce refers to selling products or services from businesses to consumers, while B2B e-commerce involves selling products or services between businesses.
The term “eCommerce” was first coined in the early 1980s and has since become an integral part of modern life.
Today, almost anything can be bought and sold online, from clothes and books to food and furniture. Even things that cannot be physically shipped, such as digital products and services, can be purchased and sold via eCommerce.
Ecommerce is convenient for both buyers and sellers. And anyone who wants to get in must start an online shop/store.
What is an Online Shop?
An online shop, also known as an e-commerce website, is a website that allows you to sell goods or services online.
You can set up an online shop using several platforms, including Shopify, Woocommerce, and OLITT. There are also several marketplaces where you can sell your goods or services, such as Jumia and Kilimall. But you’ll have to be content with giving them a cut of profits.
If you want to keep all the revenue from your online shop in Kenya, consider setting up your own online store.
Related: How To Start Airtime Selling Business In Kenya.
How To Make Money With An Online Shop In Kenya
Now that you know a little about the history of the eCommerce industry, you might be wondering how to make money with an online shop.
There are several ways you can get it done:
a). Make and sell your products.
The first and most common way to make money with an online shop is by making and selling your products.
If you have a product or service that you want to sell, then setting up an online shop is a great way to do it.
You’ll need to create a website and add in eCommerce functionality, but once that’s done, you can start selling your products immediately. This method works best if you already have a customer base or following, as they’ll be more likely to buy from you if they know who you are.
For instance, if you have a knack for fashion and design your own clothes, you can start an online boutique.
Or, if you love baking and making cakes, setting up an online cake shop in Kenya could be a great way to make money from home.
b). Sell other people’s products
Another option is to sell other people’s products through what’s known as affiliate marketing. This involves finding products already being sold by other businesses and promoting them on your website.
When someone clicks on the product and makes a purchase, you’ll earn a commission from the sale.
This can be a great way to make money with an online shop in Kenya as it doesn’t require upfront costs or inventory, but it takes some time to build up a good selection of products to promote.
You will also need to think about how you’re going to promote the products on your website, as well as how you’re going to stand out from the competition.
c). Wholesaling/Dropshipping in Kenya
Unlike the first idea, where you make and sell products yourself, wholesaling and dropshipping involve selling products that are made by other businesses.
With wholesaling, you’ll need to purchase the products in bulk from the manufacturer or supplier at a discounted rate.
You can then sell these products on your website or the online shop in Kenya at a higher price, making a profit.
Dropshipping works in a similar way, but instead of purchasing the products upfront, you only pay for them once someone has made an order on your website.
The supplier will then ship the product directly to your customer, meaning you don’t have to worry about holding any inventory. This option is often seen as being less risky and requires less capital to get started.
What we’ve seen so far is called the revenue models for e-commerce. Other ways to make money from your eCommerce website or online store include:
Read also: 15 PROVEN Ways To Get More Online Store Sales in Kenya.
e). Offering services
If you have a particular skill or expertise, you could use your eCommerce website or online store as a platform to offer services. For example, you could use your site to sell consulting services, coaching programs, or even run an online course.
This is a great option if you’re looking for ways to monetize your eCommerce business without relying on selling physical products.
f). Selling digital products
Another way to make money from your eCommerce website in Kenya is by selling digital products such as eBooks, audio files, or software applications.
This can be a great option if you have expertise in a particular area and want to share your knowledge with others through an eBook or video tutorial.
Alternatively, you could create a tool or software application that would be helpful for people in your niche market. Once again, this is a fantastic way to monetize your site without handling any physical product inventory.
g). Selling membership access
A final way to make money with an online shop in Kenya is by selling membership access to a private community or forum. This could be done as part of an existing subscription-based service that you offer or as a standalone product.
This option can work well if you have valuable content or insights that people in your niche market would be willing to pay for on an ongoing basis.
It is also a great way to build up a recurring revenue stream from your eCommerce business in Kenya.
Again, revenue channels are available to you when you create an online shop in Kenya.
This is to say, they don’t work on their own unless you do something. What’s that thing?
Read also: How To Start Online Store Business In Kenya in 7 Steps.
How Can I Make More Money on My eCommerce Site?
First, pick one or two revenue models. Look at what we’ve discussed above and take your pick.
The next step is to build systems in place to feed your model and collect money on the other end.
And then you can take the following steps to boost your chances of making money with your online store in Kenya:
Find a profitable niche
A niche is a profitable market segment. It is a group of people who have special needs or interests that are not being met by the mainstream.
There are a lot of examples of niches in eCommerce. You can pick the right niche by looking at what is popular and in demand.
For example, let’s say you want to sell clothes for plus-size women. This would be considered a niche market because it’s not widely available.
Plenty of plus-size women are looking for clothing options, but they have trouble finding them because most stores don’t cater to their needs.
If you can find a way to fill this need, you’ll be able to make money with an online shop in Kenya catering to plus-size women. But it’s important to pick the right niche so that you can be successful.
How to pick a niche for your next online shop in Kenya
Again, the right niche can make all the difference in whether or not you can build a successful business.
Unfortunately, choosing a niche is not always easy. There are so many factors to consider, and it can be tough to know where to start.
To help you out, we’ve put together a list of five powerful tips that will help you pick a profitable niche for your online store.
a). Consider your passions and interests
One of the best ways to choose a niche for your online store is to consider your passions and interests. What are you passionate about? What do you enjoy doing in your free time? These are all great places to start when choosing a niche.
If you’re able to build a business around something you’re passionate about, chances are that you’ll be more successful than if you were just trying to sell products that didn’t interest you.
Not only will be passionate about your niche make it easier for marketing purposes, but customers will also be able to tell that you believe in what you’re selling, which can go a long way in building trust and rapport with potential buyers.
b). Do your research
Once you’ve brainstormed a list of potential niches, it’s time to do some research. The last thing you want to do is choose a niche that isn’t going to be profitable.
There are a few different ways you can go about researching your niche. One way is to use the Google Keyword Planner tool. This tool will allow you to see how many people are searching for certain keywords related to your niche and will give you an idea of the competition level.
Another great way to research your niche is by looking at other successful online stores in similar industries.
See what they’re doing right and try to replicate their success in your own business model. You can also learn from their mistakes so that you don’t make the same ones yourself!
c). Consider trends
When choosing a niche, it’s important to think about current interests and future trends. What products or services are popular now? But more importantly, what do experts predict will be trending in the future?
If you can get ahead of the curve and start selling products that will be in demand, you’ll be well on your way to success.
Try to stay up-to-date with current trends and always be on the lookout for new ones so that you can adjust your product offerings accordingly.
d). Consider your budget
Another important factor to consider when choosing a niche is your budget. Not all niches are created equal – some will require more money than others to start.
If you have a limited budget, choosing a niche that won’t break the bank but still has the potential for profitability is important.
Don’t let a lack of funds stop you from starting an online store altogether, though!
There are plenty of cost-effective ways to get started, such as dropshipping or print-on-demand services.
These methods allow you to sell products without having any upfront inventory costs, which can help keep business expenses low while still giving customers what they want.
While this may not be the ultimate list of what to consider, these are the things to lay a better foundation when looking for a winning niche!
Find the right product
Now that you better understand your niche and audience, it’s time to start thinking about what product you’d like to sell.
If you’re unsure what product would best fit your online shop, study your audience and understand their struggles. Once you know what they need, you can start looking for products that would help solve their problem.
While at it, consider the product’s price point, shipping costs, and whether or not there is a demand for the product.
The next step is to look for a supplier. Your revenue model will determine this. If you opted for dropshipping, you could find suppliers through AliExpress, Oberlo, or Dropified. If you’re looking to manufacture your own products, search for manufacturers on Alibaba.
Set up an online store
By now, you should have settled on the right product to sell online in Kenya.
Whether you’re selling physical goods, digital products, or services, setting up an online shop is a great way to reach a wider audience and generate additional income.
If you are unsure where to start, follow these steps to get your e-commerce business up and running.
First, you’ll need to choose the platform on which to build your store. Shopify, WooCommerce, and OLITT are popular options with different features and price points.
Once you’ve selected a platform, sign up for an account and select a plan.
Next, you’ll need to add your products or services to your store. Be sure to include high-quality photos and detailed descriptions. You’ll also need to set pricing and shipping options.
Start marketing your online shop
Now that your online shop is running, traffic is the lifeblood. Here are some tried-and-true ways to start marketing your shop in Kenya and driving visitors to your site.
- Get listed in online directories. This will help new customers find you when searching for businesses like yours. Make sure your listing is accurate and complete, with up-to-date contact information.
- Use social media. Platforms like Twitter, Facebook, and Instagram are great for promoting your business and connecting with potential customers. Post engaging content, run giveaways, and offer special discounts to followers to encourage them to check out your shop.
- Advertise online. Google AdWords and other paid advertising platforms can effectively reach new customers searching for products or services like those you offer.
- Partner with other businesses. Find complementary businesses that serve the same target market as you and offer to promote each other’s products or services. This can be a great way to reach new customers while building relationships with other businesses in your industry.
- Invest in SEO. Search engine optimization can help ensure that your website appears as high up in search results as possible. This will make it more likely for potential customers to find you when searching for products or services like those you offer.
- Get involved in your community. Attend local events, sponsor a team or charity, and get involved in other activities that will help raise awareness of your business among potential customers in your area.
Read also: How To Drive Traffic To Your Online Store In Kenya: 9 Free And Paid Methods.
An online shop can be a great way to make some extra money, but there are a few things you need to keep in mind if you want to be successful.
First, use our online store builder to create an online shop in under 5 minutes. This will give you the ability to start selling right away.
Second, you need to make sure that you get started right now. The sooner you start, the sooner you can start making money.
Finally, keep in mind that you can only make money with an online shop if you have something that people want to buy. If you have nothing worth buying, your online shop will never make any money.