SavoStore mints millions from appetite for imports

By LILLIAN KIARIE

KENYA: Four years ago, James Kabue and Sidney Karanja were students in Kenya. Today, the two run an online shopping and package delivery service that handles cargo worth millions.

They have contracts to import items from the US to Kenya from individuals, corporates and non-governmental organisations like USAid, UNDP and ILRI.

Their journey started in April 2010, when Sidney, then 24, transferred credits from the United States International University (USIU) in Nairobi to Wichita University.

High-end equipment

On getting to America, the journalism and marketing undergraduate student was amazed at the high-end film and photo equipment at his disposal.

“My former classmates at USIU were embracing outdated digital equipment. The stores in the US were stocking better-designed film and photo equipment, so I took a photo of a camera and uploaded it on my Facebook page to show them,” Mr Karanja said.

His friends and former journalism schoolmates went crazy when they read the specifications the camera had.

“They would not stop asking me how I could send it back to them in Kenya.”

He realised the Kenyan market was hungry for photo equipment and tried to figure out how he could meet the demand at competitive prices.

“I gathered that purchasing items from US online stores while in Kenya can be hectic, or impossible in many cases. This is because most online stores do not accept foreign credit or debit cards. And even when they do, a majority do not ship to addresses outside the US, or they charge  exorbitant freight fees to do so,” Karanja said.

He bought cameras and their accessories from wholesalers in the States and shipped them to Kenya. They arrived in less than two weeks.

“The high-end cameras cost between Sh43,000 and Sh344,000. The reception was very positive and through word of mouth, my side hustle became very productive,” he said.

With coupons and wholesale prices and discounts, Karanja did not find it too difficult to make good profits.

In a year’s time, he had made Sh1 million in profits.

By July 2012, demand for more imports began flooding in.

“My customers started asking me if I could get them items like jewellery, wedding gowns, designer shoes and computers. I took up the challenge.”

Karanja quit his job at Niagara Conservation as a marketing analyst and moved to BEHR Process Corporation so he could get more time to focus on his import business.

He also partnered with Mr Kabue after he informed his close friend that he wanted to set up a  website to attract more customers. Soon, SavoStore.co.ke was born.

“It was a brilliant idea that I have enjoyed working on to build the brand we are today,” Kabue said.

Using logistics resources in the US, the two have been able to counter challenges that prevent Kenyans from buying goods online.

Shipping costs

“We usually buy items on behalf of our customers and promptly ship the goods to them anywhere within Kenya. To help our customers save on shipping costs, we also consolidate customer purchases into single packages that take up less space on cargo carriers,” Kabue said.

Working together, the two were able to diversify the products on offer.

To make their profits, they charge a shipping and service fee, which varies depending on the type and size of goods being shipped.

“The smaller the item, the less the service and shipping fee. The service fee can range from Sh5,000 to Sh10,000, while shipping fees are between Sh2,000 and Sh20,000,” Kabue said.

Why did they choose the name Savo?

“We wanted a name that would localise our brand. Tsavo was what we intended to call it as it resonates with Africa, our heritage. However, we learnt that the government restricts individuals from taking up names that echo symbols of national pride, for instance, Tsavo National Park,” said Kabue.

So they dropped the T.

The difference

Online shopping is getting more popular by the day, with sites like Jumia, Rupu, Zetu, Bid or Buy and Olx revolutionising the scene, so what does SavoStore offer that’s different?

“We have access to every online store in the States and give Kenyans the thrill of buying abroad. Our goods come with a certificate of quality and consumer protection is high,” Karanja said.

They also offer their clients goods that have yet to be launched in Kenya.

“When X-box and PlayStation released new consoles, we were able to pre-order them for our customers before they were available in the market. When  iPhone 5S and iPhone 5C were released in the American market, our Kenyan clients got the phones 10 days later,” Kabue said.

SavoStore provides quotation on desired items within 24 hours. To confirm an order, one makes a payment either through a cheque or M-Pesa deposit into their CFC Stanbic account.

Orders arrive within 10-14 days. A number is provided to track the location of ordered goods.

Alternatively, clients can order items from online stores and have them delivered to SavoStore’s offices in the US, and the duo will facilitate shipping to Kenya.

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