How to sell online in Uganda

Digital evolution has changed so many things in a very short period of time, including how we buy and sell online in Uganda.

As technology advances, the way to sell goods online has also advanced. Individuals and small business owners who previously advertised their products on mainstream media have now shifted to utilizing the internet as their new marketing and sales tool. Yes, sales have gone online!

Indeed, it is a dream of many Ugandans to sell goods and services online without the need of having a physical store. Unfortunately, most of them do not know how to get started with selling online.

So how do you start selling products and make money online in Uganda? In this article, I will take you through everything you ever wanted to know about how to sell online in Uganda. Read on!

Read; How to get your business online in Uganda in 3 ways

Why Should You Sell Online In Uganda?

Making profits and getting rich may be the most compelling reason to venture into anything. But there is more to online selling than just making money.

According to data from Statista, global e-commerce sales are projected to reach USD 5 trillion in 2021. And you will be surprised to learn that among all the online shoppers in the world, Uganda has one of the fastest growing population of biggest spenders when it comes to digital retail.

Part of the reason is over 42% of Ugandans now have access to internet, and are always hooked on their smartphones for longer periods of time each day that goes by. In fact, according to data on the ministry of ICT website, there are 18.8 million internet users in Uganda as of 2021 and they spend an average of 4 hours, 56 minutes each day using social media.

At the end of 2018, Ugandans spent USD $150 paying for products and services online. Indeed the massive shift in buying habits of Ugandans from physical to digital has opened up a whole new world of possibilities for anyone who wants to sell online in Uganda.

If you think you can respond to following reasons positively, then online selling is for you:

• You have a great product that will give you edge over other sellers.
• You want to expand your market and reach customers who are normally inaccessible to you
• You have the ability to use technology and you are not afraid to use it to your advantage.
• You are a self-starter and you can pull up yourself by your bootstraps.
• You want a local cost way to kickstart your business before you go physical

Money is the biggest motivation to start selling your items online, but without other reasons to do so, expect your business to collapse before you even get it off the ground. Keep reading this guide to find answers to questions about what and how to sell online goods online in Uganda.

Benefits of selling online in Uganda

Selling online comes with a lot of benefits and among the are;

• Low setup fees
• Earns you extra income
• Flexible
• Operation has no boundaries as you can sell to a global audience.

Disadvantages of selling online in Uganda

Some negatives of online retail in Uganda include;

• Website costs
• Infrastructures
• Security and fraud
• Advertisement costs
• Lack of trust by buyers

Online Selling Channels in Uganda

What are the ways to sell online in Uganda? Below the 3 channels you can use to sell online in Uganda.

Channel 1# – Ecommerce marketplaces

A popular option of selling online in Uganda is to sell through an ecommerce marketplace. An ecommerce marketplace is an online platform that connects buyers and sellers. Marketplaces let merchants create shops on their platforms through which they can post and sell their goods and services. Joining these marketplaces is free. But, usually, the marketplace owner take a certain percentage of commission off every sale a merchant processes through their platform.

The most popular marketplaces in Uganda include;

• Jumia Uganda
• Jiji Uganda
• Condala
• Ubuy
• Dantty
• Duka Stores
• Kikuu
• Ugamall

Channel #2 – Ecommerce Website

Whether you’re an artist that makes own products, company that wants to showcase its own proprietary merchandise, or someone who wants to resell other people’s products, having your own ecommerce website will help you achieve more. A website acts as a backbone of your business. It your digital address where people can go find out more about your brand and what you sell. Fortunately for you, there are a lot of resources out there that you can utilize to your advantage. For example you can for ecommerce platforms such as Shopify, Magento or WooCommerce. These were specifically designed to streamline the creation of ecommerce websites. If you can’t create a website on your own, you can hire a professional web designer in Uganda to do that for you at a cost.

Channel #3 – Social Media

With over 3.4 million users, Social Media is one of the most powerful platforms to sell from. Whether you have a website on or not, you can decide to sell your products social media. To get started, you need to signup on relevant platforms, create business handles and start advertising your products and services.

The most popular social media platforms include;

• Facebook
• Twitter
• Instagram
• YouTube
• TikTok
• Pinterest
• WhatsApp

Best and fast moving products to sell online in Uganda

Having worked in e-commerce industry for some good time, and based on my experience, here is a conclusive list of the best and fast moving products to sell online in Uganda.

• Clothing – Especially women clothes.
• Footwear – For kids, women and men
• Fashion accessories – Watches and jewelry.
• Phones – Known brands, though, unless you have a proper marketing budget.
• Electronics – TVs, computers, laptops, Power banks and earphones etc
• Weight loss products – Ugandans are starting to be more cautious with their wellness. Weight loss products sell like hot cake!
• Gaming – PS3, PS4 & PS5
• Home security cameras

Steps to sell online in Uganda

At this point, you are probably already convinced to start your own online selling business in Uganda. But to be sure your business has everything to grow, you need to plan everything ahead. Create a solid plan as if you learned it from Harvard business school. Here’s a no-nonsense, step-by-step guide on how to sell online in Uganda:

Identify the Product to Sell

Identifying your niche market is very crucial to setting up your online selling business. Carry out a detailed research and identify the products that people are looking for. Ensure that you choose products that marketable and are on high demand within your target audience. In online selling, you need to give people what they are exactly looking for. Take your time to learn about your target market and what they search for online. If your target audience is looking for oranges, do not try to sell them pineapples.

Write a business plan

Having an executable business plan is very vital in the success of your online selling. Before you embark on the process of selling online, first write a business plan. Whether you’re planning to present your plan to investor for funding or not, a business plan will guide you to take steps for a successful online selling business in Uganda. Figure out relevant costs and lay down a marketing strategy. While writing your business plan, consider the following:

• Production/sourcing cost
• Delivery/Shipping costs
• Taxes
• Employee wages
• Cost of marketing

Register business and get a license

You could be wondering if you need to register your business in Uganda as it is an online one. The answer is yes. Registering your business makes it a legitimate one. Registering a business with URBS costs only UGX 50,000/-.

Find Reliable Suppliers

Whether you are going to create your own products and you just need materials, or you are planning to resell other people’s finished products, you are going to need suppliers. Identify suppliers that your business will depend on.

Create a Stunning Website

In the e-commerce industry, do not think the only thing you need for your online business is a Facebook page or account.

While social media plays a crucial role in your business success, you need a website where all the leads will be directed and where your customers can make purchases from.

There exists SaaS based e-commerce solutions that you can use to build your online shop even if you have no programming knowledge. The most popular ones include Magento, WooCommerce and Shopify.

These solutions come with premade website templates with drag and drop features making it easier for one to setup a fully functional website. This is the easiest way to setup and online shop on your own. However this method is not a long term solution.

Normally, these ecommerce solutions come with very limited features and customization abilities and also attract a monthly or annual fee. For Shopify pricing starts at $29 per month.

Alternatively, if you cannot afford readymade solutions like Shopify, you can hire a professional web designer to create for you a CMS website. Web designers in Uganda charge from UGX 500,000/- per web design.

Your website should be fast, responsive, mobile friendly and easy to navigate.

Setup a payment gateway and get paid

Your ecommerce website is now ready, and customers can start visiting it and make orders. But you start accepting payments online, you will need to choose a suitable payment mode. In Uganda, you can accept payments through several payment gateways including Mobile money and credit/debit card. To maximize your order, allow your customers to place orders and pay cash on delivery.

Market your online shop/store

Even if you have the cutest website in the world, if nobody knows about it, you won’t get any sales. In order to generate sales, it is important that you get your online shop to the masses. You need to drive customers to your website by marketing it. Consider marketing your website using the following strategies:

Online strategies

• Pay Per Click (CPC) advertising
• Affiliate marketing
• Run special deals and offers
• Email marketing
• Influencer marketing
• Social media marketing
• Content marketing through a blog section on your website
• Search Engine marketing

Offline strategies

• Advertise on mainstream e.g Radio, TV, newspapers and billboards
• Grand opening
• Word of mouth
• Industry specific trade shows
• Sales literature e.g Flyers, business cards, brochures etc

Also read; Buying Used Items Online in Uganda: 7 Expert Tips

Conclusion

Now that you have learnt how to sell online in Uganda, also remember that Ugandans are hard-trusting people, so ensure that you take care of your first customers well. With good customer care, you can count on repeat customers and referrals. Another thing, be patient. If you exclusively sell your products online, give yourself some time to break even. Wish you good luck!