The partnership between mallofkenya and ebay has allowed this to be a dream come true for more visit the link below. But what are the huge setback of venturing in such a business. Using dhl is a huge set back and a very expensive route lets move to how china trades with america and how they have so low shipping cost. It cost 1$ to ship products from china to US look into https://www.wish.com/american company based in California that sell cheap Chinese products with a very low shipping price also look at alibabas shipping price to US an extra ordinary price easy to lure you. the only reason till now how china outdo the us is do to the cheap products they produce this is as a result of cheap labour .Kenya has a more cheap labour than china so what do you think kenya should be doing to increase the trade and reduce cost of doing business?
you sir! have asked a very important question. i can tell you that for a fact. this question had it not been asked, would have have been a stupid one. a wise man once told me that the only stupid question is the one that has not been asked. moreover, the big book says, blessed are they that ask questions, for they shall get answers.
Me thinks the US considers China a strategic trading partner due to the big population, meaning a big market for American goods. So they are ready to bend backwards to please the Chinese. As for Kenya, our population is small so unless we form trading blocs with our neighbors to negotiate as a bloc, they will generally ignore us.
Some European countries are small than kenyan population but the US still does great business with them.The huge buyer from the chinese market is stores like walmart, companies like walmart benefit a lot when they have to pay less taxes and get tax breaks due to the large employment but the mean strategy has been acquiring cheap goods from china and various countries like Malaysia and selling the goods at american price to make huge profit. I think wat we should be looking into is creating the same products and reduce the costs of doing business to beat the chinese market.
In 2016 the highest minimum wage per month increased to 327$ (for unskilled)while in recent kenya 2017 the highest minimum wage being 130$(unskilled and semi skilled employees) The only reason they provide cheap and affordable goods is because they work on bulk products thus increasing their profits.