Did you know that you can earn at least Ksh.25,000 in Kenya by doing business with Alibaba without any hassle?
With the right kind of investment and market, you can make anywhere from our minimum approximation of Ksh.25,000 to Ksh.100,000. This business model involves purchasing simple glass jars, repurposing them through decoration and reselling them at over 100% profit. These special glass jars, called boba cups, are an emerging trend among the youthful generation, due to their classy and aesthetic nature. They come in all shapes, styles and sizes, but for this review, we will be sticking to one particular type. Check them out here.
Let’s dig into the formula for this business success.
Some basic information
To start, let’s get a basic understanding of how this boba cup business runs.
This business involves the purchase of beer can-shaped cans from Alibaba, decorating them with stickers that you will also purchase from the same B2B marketplace and then reselling the final improved product to clients at a profit.
The capital you need
This business will require you to have a capital of at least Ksh.25,000 that will be used to purchase inventory such as glass jars, and stickers and to cater for shipping from China to Kenya.
With the capital requirements laid out, let’s break down the steps necessary to start this business.
📝Breakdown of steps
Note: We will work with dollars, and then convert all currency to Kenyan shillings at the end.
Step 1: Buy the Glass Jars and Decoration Stickers
The first step will be buying these glass jars we discussed earlier. These glass jars are usually sold on Alibaba wholesale, meaning that you can’t just buy one, but rather, a whole set. Since this is a business on trial, you will need to select the cheapest order of only 50 jars. These jars will cost you around $1.12 or Ksh.174 each and cumulatively, this will be around $56.
Next, you will need to buy glass transfer stickers that will be used to decorate your glass jars. For this post, we selected the stickers linked here.
One sticker sells at around $0.85 and may go as low as $0.40 depending on the seller you choose and the amount you wish to buy.
For this tutorial, we will work with $0.85 as the buying price.
Assuming you buy around 60 pieces, you will spend a total of $51.
Now let’s talk shipment fees.
Step 2: Cater for shipping
Shipping your products from China to Kenya will be broken down into two phases. The first phase will be shipping the jars and stickers to a Kenyan shipping agency in Kenya, and the second phase will involve the shipping of your products to Kenya, through the shipping agency that we will settle on, later on in this article.
Shipping calculations are as follows:
Phase 1 – Supplier Delivery fee
Delivering the 50 jars from the supplier to the Kenyan shipping agency will cost you around $9. Converting this calculation using current rates, will give you a sum of Ksh.1,395. Make sure to confirm the actual exchange rates when reading this.
For the glass transfer stickers, delivery fees will be around $5. Summing both shipment fees up will be $9 + $5 = $14
Phase 2 – Shipping to Kenya
Since the glass jars are a bit bulky, shipment costs are somewhat high. To get the actual figure, you will need to get the dimensions of the product you are shipping, with which the Kenyan shipping agency will calculate the total shipment costs.
From our research, we gathered that 50 glass jars have dimensions of:
56 × 40 × 45 = 10,800cm3
In Cubic Metres, this will be approximately 0.101m3
Each cubic metre (CBM) costs around $386. Therefore, your total shipment fee will be:
0.101 × 386 = $38.99
Round this up to $39.
For glass transfer stickers, shipping to Kenya will be through air and therefore, you will be charged around $17.
Summing Up: $39 + $ 17 = $51
Cumulatively, your total shipment fees will be as follows:
|Supplier Delivery Fee||14|
|Shipping to Kenya||51|
|In Kenyan Shillings||Ksh.25,904|
Returns on Investment (ROI)
You are probably wondering whether you will make any profits from investing Ksh.25,904 in your business.
Let’s break it down;
Production costs for a single decorated glass jar are $1.12+$0.85=$1.97 + shipment fees (+$0.18+$0.09) = $2.24 which is equivalent to approximately Ksh.370.
Assuming you decide to sell each decorated glass jar at Ksh.1,000, you stand to make a profit of Ksh.630.
This translates to a 170% profit margin.
From your initial investment of Ksh.25,904, you will make a gross income of Ksh.50,000 and a net profit of Ksh.24,096.
Nevertheless, remember your turnover rate will determine how fast you get hands-on profits. If your marketing strategy is poor, you will make minimal sales and this business model will not be worthwhile.
Important factors to consider
Setting up your business in a good location will be critical for your success. Consider demographics such as population distribution, economic capabilities, and age.
You will want to target a youthful market within the campus age bracket. These decorated glass jars are more popular among ladies than men. Therefore, your marketing should target females.
Further, set up your location in central business districts, or near academic institutions such as universities or colleges.
2. Marketing strategies
When embarking on marketing, social media should do all the heavy lifting. Choose a platform such as TikTok, where going viral is easier than other platforms like X, (formerly Twitter) etc. in your marketing videos, and use creativity to attract customers.
This doesn’t mean that you should abandon physical marketing.
If you choose to open a shop, make sure that your products are conveniently displayed and attractively set.
This business model will be easier for you if you already have a retail shop that is already making money, just in case your glass jars aren’t selling fast enough.
All businesses are risky, and this is just one of the many kinds you can try. To ensure success, follow our guide to the letter, and do more research before trying this out. Remember, this is not financial advice!