The verdict in three sentences
In Ghana, cash on delivery (COD) reassures the customer but blows up hidden costs: returns, no-shows, dispatch riders sent for nothing. Prepaid mobile money cuts the risk but can dampen conversion among wary buyers. The 2026 numbers decide it: 20 to 30 % failed orders on COD versus 3 to 6 % on prepaid MoMo.
The real cost of cash on delivery
COD looks free to the merchant, but every failed order costs:
- Wasted round-trip dispatch: 20 to 40 GHS in rider cost, gone.
- Collection delay: T+3 to T+7 before you touch the money.
- Tied-up stock: reserved product then re-shelved.
- Pure no-show: customer absent or refusing at the door.
COD vs prepaid mobile money (2026 order of magnitude)
| Criterion | Cash on delivery (COD) | Prepaid mobile money |
|---|---|---|
| Failed orders | 20 to 30 % | 3 to 6 % |
| Return rate | ~22 % | ~4 % |
| Collection delay | T+3 to T+7 | instant to T+1 |
| Wasted dispatch cost | 20 to 40 GHS | 0 |
| Transaction fee | 0 at order | ~1.5 % + E-levy 1 % context |
| Effect on conversion | reassures (+) | can dampen (-) |
Estimates for 2026 in Ghana. COD looks cheaper on transaction fees, but its returns and wasted dispatches often make it costlier overall.
The deposit strategy: best of both
| Model | Failed orders | Checkout conversion | Net cost / order |
|---|---|---|---|
| 100 % COD | 20 to 30 % | baseline | high (returns) |
| 100 % prepaid | 3 to 6 % | -5 to -10 % | low |
| Deposit + balance on delivery | 8 to 12 % | +8 to +14 % vs prepaid | moderate |
Asking for a MoMo deposit (e.g. 30 % of the basket) then the balance on delivery filters out unserious orders while keeping COD's reassurance. It is often the 2026 optimum.
Mini case study
Abena sells homeware online in Accra. She handles 250 orders/month, average basket 200 GHS, i.e. a theoretical 50,000 GHS revenue.
On 100 % COD: 25 % failed = 62 lost orders, including 62 x 30 GHS = 1,860 GHS of wasted dispatches, plus ~12,400 GHS of unrealised revenue. Switching to a 30 % deposit: failed orders down to 10 % (25 orders), wasted dispatch ~750 GHS, revenue recovered ~9,300 GHS/month. Net gain: ~10,400 GHS/month between saved revenue and saved dispatches.
Refer Kolonell and earn: partner referral programme
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Know merchants in Accra, Kumasi or beyond struggling with COD and payments? Become a Kolonell referral partner and earn a commission on every project signed thanks to you:
| Pole | Sale commission | Recurring |
|---|---|---|
| Showcase site | 15 % | + 5 % recurring |
| E-commerce | 12 % | per contract |
| Marketplace | 10 % | per contract |
| Institutional | 8 % | per contract |
A single e-commerce project at 2,000,000 FCFA earns you 240,000 FCFA. Referring is simple: you introduce us, we close, you get paid.
FAQ
Is COD really costlier than mobile money?
On transaction fees no, but on total cost yes: 20 to 30 % failed orders, wasted dispatches and a T+3 to T+7 delay often make it costlier than ~1.5 % MoMo fees.
Does a deposit scare customers away?
On the contrary, a 30 % deposit filters unserious orders and lifts net conversion 8 to 14 % versus 100 % prepaid, while keeping the reassurance of paying the balance on delivery.
How much does a Kolonell referral partner earn?
From 8 to 15 % depending on the pole, plus 5 % recurring on showcase sites. An e-commerce project at 2,000,000 FCFA earns the partner 240,000 FCFA.
Should I drop COD entirely in Ghana?
Not necessarily. COD reassures part of the market. The best approach is the hybrid deposit + balance on delivery, cutting no-shows without killing conversion.
Which rail for the deposit?
MTN MoMo and, increasingly, other wallets cover most customers in Accra, at ~1.5 % fees. Offering more than one at checkout maximises deposit conversion.
Let's talk about your project. We set up your Ghana checkout with a MoMo deposit to cut no-shows, or join our referral partner programme. 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.
