Do you want to start wholesale business in Kenya but don’t know how or where to start? Starting a business venture is not easy, especially when you have little to no experience running a business.
There are so many risks involved, and raising the needed business capital may too be a problem. The best thing is that determined entrepreneurs don’t give up quickly, so here is a step by step guide on how to start a wholesale business in Kenya and reap big.
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What is a wholesale business?
A wholesale business is where you sell products in large quantities to resellers, companies, or consumers buying in bulk. As a wholesaler, you will be supplying products to retail stores who in turn, will sell to the consumer.
Why start wholesale business in Kenya?
The wholesale business has many advantages;
You get to sell in bulk.
Running a wholesale business means that your business is B2B (Business to Business). And it is more profitable than B2C (Business to Consumers). Selling in bulk means that your products move faster than that of B2C. Also, in volume means more profits in a shorter time. Business to consumer seller will have to sell more of single products to realize consistent profits.
Sales are consistent.
Unlike the business to consumer sellers, As a wholesaler, you get consistent bulk sales because you deal with retailers and not consumers. A retailer, on the other hand, may have a good number of customers today and none the next day. This is because the consumer’s buying behavior change from time to time.
When you have consistent sales, it means your income is also steady. A wholesale business is suitable for anyone who wants a consistent and reliable source of income.
Important things to know when starting a wholesale business in Kenya.
Do thorough market research.
Market research is a very crucial step when starting any business. It is even more critical if you want to focus on wholesale business. As a wholesaler, you need to understand your target market. Ask yourself, who is your target market? What is your product?
Remember that choosing a product that sells fast is crucial; otherwise, it will be hard to continue with the business if you have slow-moving merchandise. Not only will slow-moving products affect your income, but it is also expensive to operate in the end.
Another thing you need to consider when doing your research is your competitors in the market. Capitalize on their weak points and learn from their strong points of selling. This will help you stand out from the competitor.
Also, identify places/markets with less competition.
2. Learn how to price your products for wholesale.
Setting up an effective pricing strategy is the most challenging and critical part of the wholesale business. You don’t want to price your product too low or too high to scare your customers. You need to make a profit, and your retailer needs to make a profit. The best way to come up with the best price is to factor the cost of buying your products from the manufacturer, shipping costs, labor, and overhead costs.
The majority of your customers being retailers doesn’t mean that you won’t have the end consumer as your buyer. You should have enticing pricing tailored for retailers/customers buying in bulk and also different prices for consumers.
3. Understand the buying behavior of your retailers.
The customer’s buying behavior differs from one industry to another. Some of your customers might be business owners, while others might be dedicated buyers meaning they are buying on behalf of a company.
Also, as a wholesale business owner, you need to know whether your customers make frequent purchases or buy in seasons.
4. Have an eCommerce strategy.
The world of business is rapidly shifting, and buyers want to place orders with their feet up on the table in their living room. That begs you to have an eCommerce strategy for your wholesale business in Kenya. It doesn’t matter whether you are a second-hand clothes seller or a designer clothes seller, you need to have an eCommerce strategy to help you sell faster. And give your customers an excellent purchasing experience. You can partner with eCommerce sites like the Corido Marketplace to sell your merchandise in bulk.
You should note that with an eCommerce store, it is crucial to have a swift delivery system so that customers can get their goods on time.
5. Learn how to market your business.
Unless you let people know that you own a wholesale business, you will never sell. Marketing is the backbone of any business. You need to have an effective marketing strategy that not only generates a good return on investment but also increases your brand awareness. You can utilize all the marketing channels, both online and offline, to promote your wholesale business.
Social media makes marketing more accessible than ever. You can create a Facebook page, for example, for your business and advertise your business to potential customers. With creativity, you can double your sales through organic traffic to your eCommerce store. Google also provides Google my Business, which helps business owners create profiles for their business online so that people searching online can easily find your wholesale business.
6. The strategic delivery process is vital.
Selling products in bulk requires a good delivery process. If you plan on delivering the goods to your retailers, then it is best to invest in good vehicles that will make the whole process seamless. When buying the car, put into consideration the type and nature of your products.
Also, to minimize delivery costs, you can find a market where many of your buyers are close to each other.
Quickly start a wholesale business in Kenya.
Starting a wholesale business in Kenya should not sound intimidating. With the right tools, mindset, and business strategies, you can create a thriving wholesale business in Kenya.
Are you ready to sell or buy products in bulk? Get started with the Corido Marketplace today.