The verdict in three sentences
Cash on delivery (COD) remains unavoidable in Accra but costs heavily in refusals, tied-up cash and fraud: 10 to 25 % doorstep refusals and 800 to 2,000 FCFA (approx. GHS equivalent) per return. The most effective lever is a Mobile Money deposit of 10 to 30 % at order, which halves refusals. Without rigorous reconciliation, the gap between theoretical and actual cash erodes margin.
The real cost of COD
COD is not free: each refusal creates a wasted round trip, a parcel to restock and cash blocked until the rider remits it.
| COD risk item | Accra 2026 estimate |
|---|---|
| Doorstep refusal rate | 10-25 % |
| Cost of a return (transport) | 800-2,000 FCFA equiv. |
| Rider remittance delay | D+1 to D+3 |
| Observed cash gap | 1-4 % |
| Cash tied up (per parcel) | 24-72 h |
| Fraud / fake-number share | 3-8 % |
These values are a 2026 order of magnitude. A refused 30,000 FCFA-equivalent basket therefore costs roughly 1,500 in transport plus lost margin and restocking time.
The Mobile Money deposit changes everything
Requesting an MTN MoMo or bank deposit at order filters out non-serious orders and commits the customer. It is the most profitable lever to cut refusals and fraud.
| Policy | Doorstep refusal | Cash gap |
|---|---|---|
| Full COD (0 deposit) | 20-25 % | 3-4 % |
| 10 % MoMo deposit | 12-16 % | 2-3 % |
| 30 % MoMo deposit | 8-12 % | 1-2 % |
| Full MoMo prepayment | 2-5 % | <1 % |
| COD + phone verification | 14-18 % | 2-3 % |
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By comparison, Douala follows a similar logic: COD risk management, rider remittance at D+1/D+3, cash gap of 1 to 4 % and growing use of partial prepayment via Mobile Money to secure orders.
Mini case study
Kwame, who runs an appliance store in Accra, handles 300 COD orders/month at 35,000 FCFA-equivalent. At 22 % refusal, 66 parcels return, costing 66 x 1,500 = 99,000 in transport, plus a 3 % cash gap on takings (about 246,000). Requiring a 30 % MoMo deposit drops refusal to 10 % (30 parcels, 45,000) and the gap to 1.5 % (123,000). Estimated monthly gain: about 177,000, before counting faster stock turnover.
FAQ
Does the deposit scare customers off? Marginally. A 10 to 30 % deposit mainly filters non-serious orders; real buyers' conversion barely moves and net margin rises.
How to limit the rider's cash gap? Daily remittance (D+1), parcel-by-parcel reconciliation and rider pay indexed on successful deliveries cut the gap from 3-4 % to 1-2 %.
What deposit amount to choose? 30 % offers the best balance: it halves refusals while staying acceptable. On high baskets, go to 50 %.
Is full prepayment realistic in Accra? Gradually. Combining a 3-5 % prepayment discount with trust built on reviews migrates a growing share of customers to upfront payment.
Let's talk about your project. We set up MoMo deposits, verification and cash reconciliation in your store. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
