Research carried out by Squareup, an e-commerce company, shows that wholesalers make a profit of about 15 to 30%. And you can undoubtedly take such margins if you have perfect wholesale business ideas in Kenya.
The profit margins for wholesalers look relatively low, but this is compensated by the large volumes they sell.
When well executed, a wholesale business can be very profitable. However, having a huge capital to start and run the business would be best. You need to buy a large stock and rent a huge space to store and display your stock.
In this article, we will give you different wholesale business ideas in Kenya and how to execute them.
What are the Best Wholesale Business Ideas in Kenya?
The best wholesale business ideas in Kenya are:
- Household foods wholesaler
- Diaper wholesaler
- Cosmetics wholesaler
- Grain wholesaler
- Stationary wholesaler
- Packaging bags wholesaler
- Shoes wholesaler
- Eggs wholesaler
- Merchandise – t-shirts, hoodies
- Farm produce wholesaler
#No. 1: Household Foods Wholesaler
A household foods wholesaler is one of the most popular businesses. Household food wholesalers stock items regularly used in the home, such as flour, sugar, detergents, and toilet paper.
They sell these items to retailers and households looking to shop in bulk. This is an excellent business to start in a residential area or a significant shopping center with a lot of traffic.
To stand out from other businesses, make sure that you do proper branding outside the shop. Remember to offer competitive prices that will make you stand out from the rest. The trick is to turn your first customers into repeat customers.
#No. 2: Diaper Wholesaler
Modern parents use disposable diapers, so the wholesale diaper business is now attractive. This business involves stocking diaper brands and other diapering products like toilet paper and baby wipes.
Before you start this business, do some research to find out the most popular diaper brands used by parents. After you find the list of brands, look for local manufacturers and distributors.
The distributors and manufacturers will supply the products, and you will sell them to local retail shops or parents looking to buy diaper wholesale.
To succeed in this business, you must stock a diverse range of products. You must also set up your shop in a residential neighborhood with young parents. Ensure your shop has good branding outside to attract people passing by.
#No. 3: Cosmetic Wholesaler
Cosmetic wholesalers stock beauty and cosmetic products. Some items include hair additions, makeup, skincare products, and other beauty products.
In 2023-2027, the beauty industry is projected to grow by 7.65 percent making it a $2.73 billion industry by 2027. Data never lies, so this is the right time to make that bold move and start your business.
For a cosmetic wholesale outlet, you can decide to import beauty products. Korea is one of the leading manufacturers of beauty products, so you can start by looking for suppliers there. If you cannot import, look for distributors locally and buy from them.
Start a wholesale cosmetic shop in any urban center or sell them online from your house. Creating a solid online presence through social media advertising would be best when selling beauty products online.
#No. 4: Grains Wholesaler
Wholesalers sell grains like maize, beans, wheat, and millet in bulk. They buy these grains in bulk, store them in warehouses and later sell them.
Most grain wholesalers distribute grains in bulk to institutions such as hospitals and schools. Another way to sell grains is to sell them to retailers.
To be successful in this business, you need to know where to source the grains. During the harvest season, buy grains in bulk from farmers and store them appropriately. You need to store the grains correctly in dry storage to prevent mold.
For effective marketing, visit various institutions and sellers to sell the grains.
#No. 5: Stationery Wholesaler
A stationery wholesale shop deals with office supplies and school accessories. These wholesalers stock printing papers, pens, notebooks, and other supplies.
Before you start a stationary wholesale shop, identify where you will source the products. We have stationary distributors in the country where you can buy the products in bulk. On the other hand, you can decide to import them direct from the source.
You can sell your products to schools and companies that need the products. On the other hand, sell to local bookstores that sell the stationary in retail.
6. Packaging Bags Wholesale
The business of selling packaging bags is now a big deal. Since the government abolished the use of plastic bags, there is a need for eco-friendly bags. You can start selling these bags wholesale to shopkeepers and wholesale.
The best thing about this business is that it has a small startup capital. Stock a variety of bags and actively look for customers. Visit businesses near you and offer to sell the packaging bags to them at a friendly price. you can get the bags right from manufacturers or you can buy from mega distributors.
7. Shoe Wholesaler
Selling shoes at wholesale can be a lucrative business. start with affordable shoes like Crocs or canvas shoes. These shoes are high in demand and they are also affordable to buy. With a capital of around 200k, you can stock enough shoes to start your wholesale business.
Once you buy start distributing to retailers in your area. Since the shoes are affordable, they are fast-moving and you can always get customers willing to buy the shoes. To survive in this business, you need to stock a unique variety of shoes and competitive prices.
8. Eggs Wholesaler
Eggs are a staple food for many Nairobians. Being an egg wholesaler is definitely a good business. However, you need to get a reliable source. There has been an egg shortage over the last few months and the cost of eggs has been going up so a reliable supplier will save you the trouble.
If you want to make the business profitable, make sure that you buy over 100 crates of eggs. You need to factor in the cost of transport so buying many eggs at a time helps.
After buying the eggs start marketing. Selling eggs wholesale means that you will be selling one crate and above. You can sell to retail shops or families looking to buy eggs in bulk.
9. Merchandise – Plain Colored Shirts and Hoodies
Selling plain t-shirts and hoodies is a good wholesale business idea. It involves selling merchandise used by printers for branding. Branding companies buy these items to print for companies and individuals who want branded items.
You can import these items in bulk from China. To stay competitive, make sure that you import high-quality products since most of the products in the market are of low quality. Visit different printers, branding companies, and schools to get orders for the merchandise.
10. Farm Produce Wholesaler
Selling farm produce wholesale is a lucrative business. If you are able to access farm produce directly from the farmers, you can buy and later resell them to retailers operating grocery shops. The business is tasking because you need to go to the farms to source the products.
You also need a means of transport for the farm produce. Identify a good marketplace for your products and also create networks with local grocery shops so that you can supply them with fruits and vegetables.
Verdict
A wholesale business can be very profitable. Unfortunately, unlike other businesses, the starting capital is higher. You can start and run the business successfully if you have the capital required and the right marketing skills.
Before you get started, you can read How to Find Cheap Wholesale Products in Kenya.
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