how to sell products online for other companies

How to Sell Products Online for Other Companies in Kenya: A Practical Guide for Small Business Owners

Selling products online for other companies in Kenya works through three main models: dropshipping (you take orders and the supplier ships directly), affiliate marketing (you earn commission on sales made through your link), and retail arbitrage (you buy products at wholesale and resell them at a markup). To start, register a business with the Business Registration Service Kenya, open a mobile money merchant account with Safaricom M-Pesa, choose a social commerce platform like LinkDuka to create your online shop, and source products from local wholesalers or international suppliers. You can begin for free using social media channels like WhatsApp, Instagram, and Facebook, then upgrade to a paid store as your orders grow. The key is building trust with customers by offering genuine products, clear pricing, and reliable delivery.

Why Selling Other People's Products Makes Sense for Kenyan Entrepreneurs

If you are a small business owner in Kenya looking to start selling online without the headache of manufacturing, warehousing, or holding stock, you are not alone. Many successful Kenyan entrepreneurs began by selling products from other companies. This model lets you test the market, learn the ropes of ecommerce, and build a customer base before investing in your own inventory.

In Kenya's fast-growing digital economy, social commerce platforms like TikTok, WhatsApp, Instagram, and Facebook have made it easier than ever to start selling. You do not need a physical shop or a huge budget. What you need is a smartphone, a reliable internet connection, and a clear plan.

This guide will walk you through exactly how to sell products online for other companies in Kenya, step by step. We will cover the legal requirements, the tools you need, the best platforms to use, and practical tips to avoid common mistakes.

The Three Main Models for Selling Other People's Products Online

Before you start, you need to understand the three primary ways to sell products that are not yours. Each model has its own advantages, risks, and earning potential.

1. Dropshipping

Dropshipping is the most popular model for beginners. Here is how it works:

• You set up an online shop (on LinkDuka, WooCommerce, or a social media page)
• You list products from a supplier (local or international)
• When a customer orders from you, you forward the order to the supplier
• The supplier ships the product directly to your customer
• You keep the difference between the retail price and the supplier's price

Pros: No need to buy stock upfront, no storage costs, easy to test different products.

Cons: Lower profit margins, you depend on the supplier's stock and shipping speed, returns can be complicated.

Kenya example: A Nairobi-based entrepreneur lists phone accessories from a wholesaler in Industrial Area. When a customer in Kisumu orders, the wholesaler ships directly to Kisumu. The entrepreneur earns KES 200 per sale without ever touching the product.

2. Affiliate Marketing

Affiliate marketing is simpler than dropshipping but typically pays lower commissions:

• You join an affiliate program (like Jumia Affiliate, Kilimall Affiliate, or global networks like ShareASale)
• You receive a unique referral link
• You promote the product on your social media, blog, or WhatsApp groups
• When someone buys through your link, you earn a commission (usually 5-15%)

Pros: No inventory, no shipping, no customer service for returns, easy to start.

Cons: Lower earnings per sale, you have no control over pricing or stock, commissions can change.

Kenya example: A fashion blogger in Mombasa shares links to dresses on Kilimall through her Instagram stories. Every time a follower buys through her link, she earns 10% commission.

3. Retail Arbitrage (Buying and Reselling)

This is the oldest model and still works well in Kenya:

• You buy products in bulk from a manufacturer, wholesaler, or distributor
• You store the products at home or in a small space
• You sell them individually at a markup through your online shop
• You handle shipping or arrange pickup

Pros: Higher profit margins, full control over pricing and customer experience, you can inspect products before selling.

Cons: Requires upfront capital, you need storage space, risk of unsold stock.

Kenya example: A seller in Nakuru buys 50 kg of maize flour from a miller at wholesale price, repacks into 1 kg bags, and sells through WhatsApp groups. The profit per bag is KES 30, and she sells out every week.

Legal and Compliance Steps You Cannot Skip

Many Kenyan small business owners skip legal registration because they think it is unnecessary for small-scale selling. This is a mistake. Formalizing your business protects you, builds customer trust, and keeps you compliant with Kenya Revenue Authority (KRA).

Step 1: Register Your Business Name

Visit the Business Registration Service Kenya (brs.go.ke) to register your business. You can register as a sole proprietor or a limited company. The process costs around KES 1,000 and takes one to two days online.

Why it matters: A registered business name makes you look professional. It also allows you to open a business bank account and apply for a merchant M-Pesa till number.

Step 2: Get a KRA PIN

If you do not already have a Personal Identification Number (PIN), apply through the KRA portal. You will need it for:

• Issuing invoices to customers
• Filing taxes on your earnings
• Opening a business bank account

Step 3: Open an M-Pesa Business Account

For social commerce in Kenya, M-Pesa is non-negotiable. Most customers prefer paying via M-Pesa. Apply for a Lipia Na M-Pesa till number or a Buy Goods till number through Safaricom. This allows you to receive payments directly into your business account.

Step 4: Understand Your Tax Obligations

As a small business owner, you may be eligible for the Turnover Tax (3% of gross sales) if your annual turnover is below KES 5 million. If you earn more, you need to register for VAT (16%). Keep records of all sales and expenses. The KRA website has guides for small businesses.

Step 5: Protect Customer Data

Under the Data Protection Act 2019, you must handle customer information responsibly. Do not share phone numbers or addresses without permission. The Office of the Data Protection Commissioner Kenya provides guidelines. For most small sellers, this simply means keeping customer details private and only using them for order processing.

Choosing Your Sales Channels: Social Commerce in Kenya

Kenya's social commerce ecosystem is unique. Unlike in the US or Europe where people shop on Amazon, Kenyan buyers discover products on social media and complete purchases through WhatsApp or M-Pesa.

TikTok Shop

TikTok is exploding in Kenya, especially among younger buyers. You can create short videos showing products in use, then direct viewers to your online shop or WhatsApp.

How to start: Create a business account, post 2-3 videos daily showing your products, and include a link to your shop in your bio. Use trending sounds and hashtags like #KenyanSeller #ShopKenya.

WhatsApp Business

WhatsApp is the backbone of Kenyan ecommerce. Most buyers prefer to ask questions, see photos, and negotiate prices before buying.

How to start: Download WhatsApp Business, set up a catalog with product photos and prices, and share your number on social media. Use broadcast lists to announce new products.

Instagram and Facebook Shops

Both platforms allow you to create a shop that links directly to your product listings. You can tag products in posts and stories.

How to start: Connect your Instagram or Facebook business page to a shop platform like LinkDuka or WooCommerce. List your products with clear photos and prices. Use Instagram Shopping tags.

LinkDuka Online Shop

LinkDuka is built for Kenyan sellers. It integrates with M-Pesa, allows you to create a professional online shop without coding, and works seamlessly with social media.

How to start: Sign up for a free account, add your products, and share your shop link on WhatsApp, Instagram, and Facebook. Customers can browse, order, and pay through M-Pesa without leaving the chat.

Step-by-Step: How to Start Selling Products from Other Companies Today

Let us put this all together into a practical action plan you can follow this week.

Week 1: Choose Your Model and Find Suppliers

1. Decide which model fits your budget and time: dropshipping, affiliate marketing, or retail arbitrage.
2. For dropshipping, search for local wholesalers on platforms like Kapu, Twiga Foods, or Jumia Marketplace. For international suppliers, use AliExpress or SaleHoo.
3. For affiliate marketing, join Jumia Affiliate Program, Kilimall Affiliate, or GlobalBees.
4. For retail arbitrage, visit Nyamakima Market, Eastleigh, or Industrial Area in Nairobi, or your local wholesale market.

Week 2: Set Up Your Online Presence

1. Register your business name and get a KRA PIN.
2. Open an M-Pesa till number.
3. Create a LinkDuka online shop or set up a WhatsApp Business catalog.
4. Create social media accounts on TikTok, Instagram, and Facebook. Use your business name consistently.

Week 3: List Products and Price Them Right

1. Take clear photos of the products (or use supplier photos if allowed).
2. Write simple descriptions: what the product is, what it does, and why someone needs it.
3. Price your products to cover costs and leave a profit margin. For dropshipping, aim for 20-30% margin. For retail arbitrage, aim for 40-50%.
4. Include delivery costs in the price or state them clearly.

Week 4: Start Selling and Getting Orders

1. Share your shop link on WhatsApp groups, Instagram stories, and Facebook posts.
2. Offer a launch discount (e.g., "Free delivery for first 10 orders").
3. Respond to inquiries within 30 minutes. Speed builds trust.
4. Process orders through M-Pesa and arrange delivery via Sendy, Bolt Food, or Parcel Delivery services.

Common Mistakes Kenyan Sellers Make (And How to Avoid Them)

Mistake 1: Not Verifying Suppliers

I once worked with a seller who listed phone cases from a supplier in China. The supplier shipped low-quality cases that broke within a week. The seller had to refund 20 customers out of pocket.

Fix: Always order a sample before listing a supplier's products. Test the quality yourself.

Mistake 2: Ignoring Customer Service

Kenyan buyers expect quick responses. If you take hours to reply on WhatsApp, they will move to another seller.

Fix: Set up auto-replies on WhatsApp Business. Respond to all messages within one hour during business hours.

Mistake 3: Overpromising Delivery Times

If you promise delivery in 2 days but the supplier takes 5, you will lose trust.

Fix: Always add a buffer. If the supplier delivers in 3 days, tell customers 4-5 days.

Mistake 4: Not Keeping Records

Many sellers do not track orders, payments, or expenses. When tax time comes, they scramble.

Fix: Use a simple spreadsheet or an app like Wave or QuickBooks to record every sale and expense.

How to Sell Products Online for Free in Kenya

You do not need money to start. Here is the zero-cost approach:

1. Use WhatsApp Business (free) to create a catalog.
2. Use Instagram and Facebook (free) to post product photos.
3. Use LinkDuka's free plan to create a basic online shop.
4. Accept M-Pesa payments through your personal M-Pesa (upgrade to a till number when you can).
5. Deliver yourself if you have a bicycle or motorbike, or ask customers to pick up.

Once you start making sales, reinvest a small portion into a till number, better photos, and paid ads.

Building Trust: The Key to Long-Term Success

Kenyan buyers are cautious. They have been scammed before. To succeed, you must build trust.

• Be transparent: Show your business name, phone number, and physical location if possible.
• Use M-Pesa: Customers trust M-Pesa payments because they can see the transaction.
• Share reviews: Ask happy customers to send a voice note or text testimonial. Share these on your social media.
• Offer returns: Even if you cannot accept returns, offer exchanges for defective products.
• Get a Google Business Profile: List your business on Google so customers can find you and see reviews.

Scaling Your Business: From Side Hustle to Full-Time Income

Once you have consistent sales, consider these growth steps:

• Upgrade to a paid LinkDuka plan for more features like inventory management and analytics.
• Run Facebook and Instagram ads targeting Kenyan buyers interested in your product category.
• Partner with micro-influencers on TikTok and Instagram to promote your products.
• Expand your product range by adding complementary items from different suppliers.
• Automate order processing using tools like Zapier to connect M-Pesa payments to your order system.

Final Thoughts

Selling products online for other companies in Kenya is a practical way to enter ecommerce without heavy investment. The key is to start small, choose a model that fits your resources, and focus on building trust with every customer. Use the social commerce tools available today-WhatsApp, TikTok, Instagram, LinkDuka-to reach buyers where they already spend their time.

Remember, every successful online seller in Kenya started exactly where you are now. The difference is they took the first step and kept going. Your first order is just a few messages away.

For a deeper dive into setting up your online shop, read our guide on How to Sell Products Online in Kenya: A Practical Guide for Small Business Owners. If you are interested in selling second-hand clothes, check out How to Create an Online Shop for Your Mtumba Business in Kenya.