How platform is offering small traders a hand up

Francis Mwangi is fast becoming a leading electronics retailer. Through online shopping website, Kaymu Kenya, the Biochemist student from the Technical University of Kenya, Nairobi, runs his Shamborina Electronics start-up.

“I ventured in June 2014 with OLX then I got registered with Kaymu in October, last year. But I started serious trading in January,” he said.
He has 77 listings of memory cards, Bluetooth devices and flash drive products.

With his primary customers being fellow students, Mr Mwangi, 23, makes an average of six sales per day from his goods whose prices range between Sh150 and Sh4,200. According to this month’s statistics, he has made Sh150,000 in sales.

The entrepreneur says that Kaymu has provided a reliable avenue that markets small-scale entrepreneurs, turning them into best sellers. He is expanding his portfolio by adding more items such as televisions and mobile phones.

“Kaymu provides a good platform to sell and mostly they promote a small business person. In fact, you do not need to have a lot of capital, you only need to be serious to start.”

Kaymu Kenya is an electronic commerce company providing local entrepreneurs with an opportunity of making profits.

According to Aleeda Fazal, the managing director, Kaymu symbolises the raw potential for business growth in Kenya.

“We have seen sellers that started with one listing and one order per week grow their online business into something that has become their full-time career, providing them with more household income than any previous employment. This is the power of Kaymu.”

“We went live in November 2014 and ever since we have seen a growth of 60 per cent every month up to date,” said Mr Steve Momanyi, head of seller management and logistics.

“We have one seller who started with three t-shirts and now he has over 150 listings,” he added.

It further offers both the buyer and the seller a seamless online environment to get in touch with one another.

Kaymu is a subsidiary of Africa Internet Group that has other affiliated companies in Kenya such as Jumia, hellofood, Lamudi, Jovago and Easytaxi. It is sponsored by mobile tech firms MTN, Rocket Internet and Tigo.

Globally it has presence in 33 countries, 17 from Africa such as Nigeria, Uganda and Tanzania. Kaymu Kenya has over 50,000 items on its site with the price ranging between Sh50 and Sh80,000.

Ms Nancy Nzisa also has a success story to share. The Strathmore University alumni started marketing her products in Facebook and Instagram in November, last year.

MODE OF TRANSACTION

But in March, immediately after resigning from her accounting job, she accepted an invitation to Kaymu.

“I joined Kaymu in March after they told me they were in a position to expose me and build my portfolio,” she told Money.

Ms Nzisa, 24, who sells t-shirts and watches at between Sh250 and Sh1,000, makes approximately Sh20,000 in a month.

She said the site is connecting start-ups with the industry pioneers hence boosting their business. She has 54 listings in her online account — Watcheske.

Kaymu has laboured in creating a smooth, convenient and secure mode of transaction. Once an item is bought, both the buyer and the seller receive an email on order details such as contacts and order numbers so that they can communicate.

The company delivers goods in all parts of the country within one and four days. Once a buyer receives the product, the money is transferred to the seller commission free. Kaymu has its own payment system — Kaymu Safepay — which is an integration of M-Pesa and other card payment options in the market.

Interestingly, Kaymu Kenya’s customer-base is growing rapidly with most shoppers being male. They buy a lot of t-shirts, jeans and sneakers.

“It came to us as a surprise that men are the best shoppers because they are becoming fashionable. Women are also being trendy and are buying sport wear and jumpsuits since they are watching on their health,” Mr Momanyi said.

STIFF COMPETITION
Faced with stiff competition, the company bets big on pricing by bundling items and consulting with the sellers to cut prices in order to encourage repeat shoppers hence more deals.

“We have deals of the day and of the week where we cut prices on items that are on high demand by bundling them,” Ms Barbara Kinyanjui, head of marketing and social media, said.

Mr George Guara, who runs Urbanai Trends is also earning well through Kaymu.

Mr Guara, an electronic engineering graduate from the Technical University of Kenya, has 90 listings of t-shirts that he sells between Sh600 and Sh900.

In a good month, he sells 50 to 100 t-shirts. The 26-year-old was introduced to Kaymu by his friend last year. He lauds the online platform for nurturing his business that has now seen him become an employer.

INCREASED SALES

“I was a one-man show when I joined Kaymu. I have now employed three people to keep up with the orders and printing,” he said.

Electronic commerce has grown substantially since the 1980s to become the most convenient means of trading. The industry pioneers are giants Amazon, Ebay and Alibaba.

Kaymu’s managing director Aleeda Fazal added that businesses are just starting to realise the importance of online presence and the next natural step will be increased sales.

Despite increased sales, it has not been an easy ride for the top sellers. Mr Nzisa said that cut-throat competition, particularly when rivals slash prices pushes one to do so as well.
In addition to buyers occasionally rejecting their orders during delivery, Mr Mwangi said that not everyone has access to the Internet so they are also losing a lot of customers.