The internet is a powerful tool that connects businesses with clients. It’s a channel that lets you reach any person from anywhere in Kenya. The future of online business in Kenya is promising, and having an online shop is an added advantage. However, to start and run a successful online business here in Kenya, you need to consider the cost of the online shop. Many entrepreneurs in Kenya make huge profits from establishing online shop.
It costs around Ksh 70,000 to Ksh 100,000 to start a small online business in Kenya, while for a big online shop, expect to pay an amount ranging from Ksh 200,000 to Ksh 250,000. There is no fixed price for starting an online shop; it depends on the size of the shop you want to start with.
Starting an e-commerce business in Kenya will capitalize on a growing trend. Most people have become inclined toward online shopping due to the CoronaVirus pandemic, which affected many storefront businesses in Kenya. When launching an online shop in Kenya, there is no need to have a lot of capital saved for stocking up with all the items you need to sell.
Factors Determining the Price of Opening an Online Store
You may have some questions about the approximate cost indicated above. Here are some features that impact the cost of building an e-commerce website:
1. Domain Name
This is a simple, human-readable form of an IP address. It’s the destination you type into a web browser. This is what users will type to reach your website. It costs about Ksh 5,000 to Ksh 10,000.
2. Hosting Price
It’s an essential aspect to factor into online business. A website host provides a place to make your website and allows it to exist on the internet. The price varies as you can purchase them by the dozen. The price depends on whether you use shared or private hosting.
Mostly when you are starting, you can use shared hosting to keep your costs down and eventually switch to dedicated hosting as your business grows.
3. Secure Socket Layer (SSL) Certificate
When you want to build an online store, you need to have the right kind of certificate so that your customers feel free and safe browsing your site. In terms of cost, it costs around Ksh 15,000 to Ksh 30,000. This will also help you keep sensitive information encrypted.
4. Site Size
Another factor to consider with an online shop’s web design cost is its size. It’s not only the design impact on your price but also the size that matters more.
Generally, when you need more pages for your site, the web design pages will be higher, so you must keep in mind how many pages you need. It may cost an average of Ksh 20,000 to Ksh 40,000. This ranges from one webpage to around twenty web pages.
4. Copywriting
Its cost is around Ksh. 2,000 per page, which is another cost of building an e-commerce website. A well-written, informative article is an integral part of your site, and you need to ensure you factor out the cost of your site.
5. Database Integration
When analyzing the cost of building an online shop, you consider database integration. It is critical to help you collect valuable information on your audience and use that data to better market them.
It enables you to market the goods better since you know more about your customers, which allows you to sell more products.
6. Licensing and Permit
This is authorized, approved, consented to, and permitted under the applicable law of the agreement, including for performing any business. When carrying out the cost factors, you must also consider this. It also costs you money to go through the process of being permitted by the government. It may cost you around Ksh 1,500 to Ksh 3,000, with a monthly payment of about Ksh 1,500.
Cost Factors to Consider
Below are three cost factors to consider when you want to put up an online shop:
1. How much does it cost to build an online shop?
2. How much does it cost to have an online store?
3. How much does it cost to set up a business website?
Advantages of Online Shop
An online shop has the following five advantages:
1. It has cost reduction
2. Faster buying process
3. Flexibility for customer
4. Store and product listing creation
5. No reach limitations
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