For the 3 years I’ve been selling physical products in Africa, the biggest mistake I’ve seen most people make is trying to sell a commodity people don’t want.
You see, you may have many products in your store. But not all products are created equal.
Choosing the right product is crucial because it means sales or no sales. Ordering products that lack demand can result in several problems for your business:
i) Excess inventory: Unsold products lead to a surplus of inventory, tying up capital and storage space which could be used for more profitable items.
ii) Financial losses: Investing in products that don’t sell leads to financial losses due to the cost of purchasing inventory, warehousing, and other associated expenses.
iii) Obsolete or outdated stock: Products that remain unsold for an extended period may become obsolete or outdated, reducing their value and making them even harder to sell.
iv) Reduced cash flow: Money tied up in slow-moving inventory limits cash flow, making it difficult to invest in other areas of the business or respond to changing market demands.
When I was starting out, I made the same mistake and ordered an item that wasn’t in demand. As you could have guessed, it didn’t sell. I learnt my lesson.
To help you, in this article, I’m going to reveal 5 products that can make you thousands of dollars within a few months.
Keep in mind that these product ideas aren’t seasonal. People buy them all year long. So if you’re struggling to find products for your customers, read through this list and pick the one you know will fit your target market.
1. Hair and hair products
Most hair products are used by women because they value beauty. Last year, the percentage of females in Africa was 50.16%. This means the demand for hair products such as wigs is high (and growing!)
Now, the hair doesn’t come alone. Women also need the following hair products:
- Natural oils: Argan oil, coconut oil, shea butter, and olive oil are popular for moisturizing and nourishing hair.
- Shampoos and conditioners: Products catering to different hair types, such as curly, kinky, or straight hair, are in demand.
- Hair moisturizers: Especially those made with natural ingredients for managing dryness and frizz.
- Styling products: Gels and creams suitable for various hairstyles, including twists, braids, and natural hairstyles.
- Hair accessories: Hair bands, clips, hairpins, and extensions are always in demand for styling purposes.
- Herbal and natural hair treatments: Products based on indigenous herbs or traditional recipes are popular among consumers looking for natural remedies for hair issues.
- Scalp care products: Treatments for dandruff, dry scalp, and hair loss are often sought after.
What makes selling hair in Africa a lucrative business?
i) Growing demand
Wigs have become insanely popular in many African countries because they meet different needs. Women who want to change their looks, women who deal with hair problems, women who lose their hair due to sickness, can use them.
ii) High profit margins
One of the best aspects of the hair wig business is the potential for high-profit margins. Consumers are often willing to invest in high-quality wigs that offer natural looks, comfort, and durability. Wigs crafted from real or synthetic hair are seen as luxury items, and that’s why they sell at premium prices.
iii) Supply
Imagine running a business and running out of stock because there are no suppliers. But that’s not the case with hair products. You will never run out of suppliers, locally or internationally. Countries like India, China, Brazil are good suppliers of these types of products.
So this is the first product idea you can explore.
Now, while hair and hair products are mostly for the female population, this next product targets the young and middle age population, men and women alike.
2. Smartphones
There is an increase in people using smartphones in the continent. By 2025, it’s projected that around 60 out of 100 Africans will own a smartphone.
This is happening because smartphones are getting more affordable, internet connection is improving, and more people are becoming tech savvy. And if you’re an entrepreneur, you’ll spot this as an opportunity.
Selling smartphones is a good market to get into. You’ll help people stay connected. One way to do this is to sell refurbished smartphones.
For context, refurbished items are those that have been previously used but are restored to a nearly new condition. After repair, they’re inspected, tested to ensure they function properly and meet quality standards, and then packaged to sell at a lower price compared to brand new items.
Think of the average mama down the road, the small seller at the local market, the guards at the office buildings, the young man who just got his first job. Selling refurbished phones is an advantage since they’ll prefer them to higher priced premium phones like IPhone and Samsung.
If you’re looking for brands with refurbished phones with the best value for money, take a look at Huawei, Vivo, Tecno, and Oppo.
3. Tires
Here are 3 reasons why you can build a profitable e-commerce business selling tires in Africa:
a) Increasing vehicle ownership
With a growing middle class and urbanization across many African countries, the demand for vehicles has been steadily rising. As more people acquire cars, motorcycles, and trucks, the need for tires increases proportionally.
According to reports, the vehicle ownership rate in Africa has been on the rise, with estimates suggesting that it could double by 2030. This surge in vehicle ownership directly translates to a larger market for tires.
b) Limited local tire production
Although there are tire factories such as Goodyear in South Africa and Michelin in Kenya, Africa has a scarcity of tire manufacturing facilities compared to the demand.
This situation often leads to a reliance on imports to meet the tire demand in various regions. Limited local production means there’s a market gap that you can capitalize on by establishing a business focused on providing quality tires. You can leverage this opportunity to import tires and meet the increasing demand.
c) Poor road infrastructure
Where others see a problem, entrepreneurs see an opportunity. Many parts of Africa suffer from inadequate or poorly maintained road infrastructure. Harsh road conditions contribute significantly to increased wear and tear of tires.
Consequently, there’s a higher frequency of tire replacements required due to damage caused by potholes, rough terrain, and other road imperfections. This creates a constant demand for durable and reliable tires, offering a continuous market for tire sellers.
4. Furniture
As the African population increases, and as urbanization increases, the demand for houses and furniture increases as well.
Picture this: Lots of people are moving to cities. They need places to live. Plus, after a busy day at work, they want a comfy place to relax. This means they need furniture like beds, sofas, and tables.
Also, as economies develop, the middle class is expanding in Africa. This means more people can afford quality furniture beyond just basic beds or sofas. They also want to have a stylish dining set for those big family gatherings or a beautiful wardrobe to store colorful African fabrics.
So sourcing furniture locally or internationally from places like China, and selling it in Africa is a great idea.
5. Consumables
These are items that are used up or depleted as they are consumed or utilized. They’re generally not meant for long-term use and need regular replenishment.
Examples of consumables include food, fuel, stationery, cleaning supplies, printer ink cartridges, toiletries, batteries, and disposable medical supplies like gloves and bandages.
They’re an important part of our daily lives.
Here are 4 reasons why it’s a great business opportunity for you:
- Constant demand: Consumables are products that people consistently need in their daily lives, ensuring a steady and consistent demand. Regardless of economic conditions, these necessities remain in high demand, making them a reliable source of revenue for businesses.
- Repeat customers: Since consumables are regularly used up and need replenishment, they create a pattern of repeat customers. This establishes a loyal customer base that returns frequently to purchase these products. Building a loyal customer base is crucial for businesses as it ensures consistent sales and fosters trust and familiarity with the brand.
- Quick turnover: Consumables generally have a shorter lifespan compared to durable goods. Due to their nature of being used up or depleted, they have a quicker turnover rate. This means businesses can sell and restock these items frequently, resulting in a more efficient use of inventory and increased sales opportunities.
- Everyday necessities: These products are everyday essentials. They fulfill basic needs and are integral parts of people’s routines. This makes them less susceptible to economic fluctuations or shifts in consumer behavior unlike luxury items, making this a reliable market.
Conclusion
Recently, artificial intelligence has flooded the tech world. This has had a negative impact in the job market, with most people in the service business losing their jobs.
However, an advantage with selling these 5 physical products is that AI CANNOT replace them. People will always need hair products, smartphones, tires, furniture, and consumables.
If I were you, I’d implement any of these 5 product ideas and turn them into predictable and growing income. Just one of these products can make you millions.
Also check out the video I created on Youtube on 5 products ideas to make you a millionaire in Africa.