Anyway, since I’m awake, I might as well talk about something I’ve been wanting to talk about since yesterday. I saw some people making fun of a shoe reseller on the TL for selling a pair of shoes at 9k while on the Nike website, the price was $45 or thereabouts.
I see this a lot on the TL, bashing people who’re simply trying to make and living, minding their own business. And I’ve seen this a lot with people bashing IG skincare shops. Please, Sina IG shop mimi so I have not stake in this business.
But I also do A LOT of online shopping so I have quite some insight in the purchasing system in the US.
So, first of all, the prices you see stated on US website, NEVER include tax. All taxes are added when you go to check out the product.
So. Each state charges sales tax on everything you buy. The tax varies from anywhere between 7.25% (the lowest state tax which is California) to as high as 13.5% (highest rate which is in Alabama. The tax is charged as a percentage of the total cost of your purchase.
Say I’m inky favorite website to purchase one of my most favorite toners... Note that the price is listed as $39.
Right. So I go to check out, I get hit with the sales tax. Suddenly the cost has shot up to $42.22.
If you’re lucky, the brand offers you free shipping. Most do not, unless you either have a discount code or you make purchases of a certain minimum amount. Shipping will cost you anywhere from $3 to as high as $30 depending on the mode of shipping. Average cost is about $5.99.
That’s hurdle number one. Next, you have to figure out how you’re gonna pay for those things. Unfortunately a lot of the brands don’t accept international credit cards & will only sell stuff to you if you have a credit card or PayPal account with a US billing & shipping address.
P.S: There are also some stores that do not accept debit cards so if you want to shops from them, you MUST have a credit card.
Anyway, you figure out that hurdle.
Next thing, the exchange rate. 😩
Some banks charge exorbitant exchange rates. 😩
The current usd/ksh exchange rate is 108.86/-. Banks and PayPal will definitely charge you higher than that.
Amazon is currently offering an exchange rate of 112.8/-!!!
Issokay, you decide to to go ahead and pay. Pps: If you, for example, charge $100 to your card at an exchange rate of 112/- then something unfortunate happens and you have to return the item, if the exchange rate is at 96/- then you also lose money because of the stupid exchange.
You’ll pay 11,200/- but when they issue a refund, the refund amounts to 9600/- because of the stupid exchange rate. 😩 So you’ll lose money yet you never kept the product. My personal trick here is to indicate payment should be in ksh that way my refund will also be in ksh.
You’ll definitely end up paying more but that way, all your money will be refunded should you return an item.
Anyway, you get through that, now you have to get the items to Kenya. You have a couple of options:
1. Ship directly from seller to Kenya. Don’t do this. It’ll only end in premium tears. Your purchase will be worth $100 but when item arrive, you’re charged tax worth $120. 😂
Ps: Never ship items in via DHL. Welele utalia. I once bought items worth $72, the shipper offered free shipping via DHL to Kenya, items arrived here then DHL gave me a bill of over 11k before the could release my item. Niliwaambia return to sender. That’s nonsense.
Option 2. Ship items to Kenya via a freight forwarder. Akina KenTex, Savostore, Vitumob etc.
Lol. They’ll charge you shipping cost per Kg. Vitumob even charge you VAT (I’ve never seen the others charging VAT). Yaani ulipie tax US tena zifike hapa ulipe VAT.
By the way, with akina KenTex, if you ship items worth beyond a certain amount (I think it’s $250 for KenTex), they will also charge you freight insurance of $25. KenTex also bill you in USD meaning you have to deal with that pesky exchange rate with them as well.
You see how something listed to cost $39 suddenly costs close to $60 before it’s even arrived on your shelves?
Price $39
After tax $42.22
Shipping $3.99
KenTex $15/kg
So far total is $61.21
Add exchange rate of 108.86/- to 112/- and it comes to between 6,663.32 to 6,855.52/-
3. Ship in via a relative or friend that’s coming to Kenya and they’re willing to carry items for you. If items are for a business, this really not a viable option especially because of the quantity (and weight) of the items you want to stock. Unless you pay for an extra bag.
Guise, an extra bag means extra charges because airlines will charge for anything they want to and can. 😂 Also, where they used to offer two free bags and a carry on per ticket, a lot of them have cut that down to only one free bag and one carry on.
Also, maximum weight allowed per bag is 23kg. If you travel with more than one bag, you pay extra. An most airlines charge $150, some go as high as $300.
If your bag is heavier than 23kg (some are stingy and offer only 15kg!), you pay extra weight charges.
So something that initially seemed to cost $39 has cost you $65.
Next, you have a shop and need to pay rent. Not everyone has a physical shop so some save on this cost by running the store out of your house.
If you have physical store, you have workers to pay.
And I’m not even going to talk about business permits and all those other small taxes/expenses the government has imposed on businesses which makes running a small business a very harsh environment. 😔
It’s a business, so you also need to make a little profit as well. So you tell me, how are you gonna those items? Am I gonna price them at $39 just because it’s listed as $39 on the sellers website? Hell no. 😒
Are there some shops that put exorbitant mark-ups to their items? Absolutely. *major side-eye*
But there’s also business I know out here that are not greedy and are ethical as hell meaning they won’t mark up a product beyond a certain percentage of what they spent on it.
*businesses
🤦🏾‍♀️ https://twitter.com/honeyandrum_/status/1319891407050592257
But see, this is the beauty of a free market. NO ONE has forced you to buy that pair of sneakers at 9K when you can see it’s $45 on the seller’s website. Literally scroll or walk in to the next shop and buy from there if their price is within your budget!
Or, OR, (this is really revolutionary, stay with me) you could import those same items for yourself?? 🤔
Truth is, there are some people that would rather pay that marked up price rather than deal with all these 👆🏾 hustles just for one pair of shoes. It’s convenient for them!
If it’s not convenient for you, si you just keep it moving? Why do you need to hop onto the TL to disparage someone’s hustle because it offend your wallet? Please don’t confuse this with giving (whether negative or positive) feedback to a business. THIS is not constructive plis.
I don’t know... maybe gather all the relevant facts/info before coming to give your sulphur scented takes on the TL?? Especially when your steaming hot take will affect someone’s business/livelihood?
I’ve never seen any of y’all picketing at Delta Towers because the Jaguars sold there are too expensive? My former CEO walked in there & ordered a Range Rover and a Jaguar, paid for both of them the same day and left. Both cars with zero mileage. Iliniuma btw but nilipona tu. 😂
You can follow @HoneyandRum_.
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