The verdict in three sentences
In Accra, cash on delivery (COD) reassures the customer but eats margin: 22 % refusals, 16 % returns and cash locked for 5 to 9 days. Prepaid mobile money with a small incentive cuts refusals to 7 % and frees cash six days sooner. The right strategy isn't to switch everything, but to segment by product category and basket size.
COD vs prepaid: the real cost
COD shows a higher average basket (24,500 FCFA) because customers order friction-free. But each refusal, return and day of locked cash erodes net margin until it falls below prepaid.
| 2026 metric | COD | Prepaid mobile money |
|---|---|---|
| Average basket | 24,500 FCFA | 21,800 FCFA |
| Refusal rate | 22 % | 7 % |
| Returned parcels | 16 % | 4 % |
| Cash locked | 5-9 days | 0-1 day |
| Relative net margin | -3 pts | baseline |
| Collection fees | 0 | 1.5-2 % |
Prepaid loses 2,700 FCFA of average basket but recovers far more in avoided refusals and cash available immediately to restock.
The incentive that flips the customer
The most effective 2026 lever is a 5 % discount for paying upfront, shown at checkout. It changes behaviour without breaking margin, because it costs less than the COD overhead.
| Prepaid lever | 2026 effect | Cost to the store |
|---|---|---|
| 5 % upfront discount | Refusals 22 % → 7 % | 5 % of prepaid basket |
| Free delivery if prepaid | +18 % prepayment | ~1,300 FCFA/order |
| COD only > 50,000 FCFA | Returns -9 pts | 0 |
| Mandatory mobile-money confirmation | Fake orders -30 % | 0 |
| Prepaid loyalty cashback | Repurchase +22 % | 2 % deferred |
A simple grid: encourage prepaid everywhere, keep COD limited to small first-order baskets to build trust, then migrate to prepaid on the second purchase.
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Mini case study
Mireille sells apparel: 300 orders/month, average basket 24,500 FCFA, 68 % COD. At 22 % COD refusals, she loses ~45 orders/month to wasted runs. By pushing prepaid via a 5 % discount and free delivery, she reaches 55 % prepaid: refusals drop to ~18 orders, and her available cash rises by ~1.6 million FCFA over the month thanks to immediate collection. The discount costs about 165,000 FCFA, easily offset.
FAQ
Is COD really more expensive than prepaid? Yes: at equal basket, COD shows a net margin about 3 points lower because of 22 % refusals, returns and cash locked 5 to 9 days. The higher average basket doesn't offset these losses.
Doesn't a 5 % discount destroy margin? No, it costs less than the COD overhead. It drops refusals from 22 % to 7 % and frees cash, which is worth far more than the 5 % conceded on orders actually paid.
Should you drop COD entirely? No. Keep it for small first-order baskets to reassure new customers, then migrate them to prepaid on the second purchase. Cutting it suddenly would scare off habituated buyers.
What fees for mobile money? In 2026, merchant collection costs roughly 1.5 to 2 % depending on volume. That's far below COD's 22 % refusals, so it pays off as soon as the discount converts orders.
How to reduce fake COD orders? Require a mobile-money confirmation or a call before shipping high-value baskets. This single step cuts fake orders by about 30 % and protects your runs.
Let's talk about your project. We integrate Wave, MTN MoMo and Orange Money into your checkout and calibrate the COD/prepaid mix that protects your cash flow. 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.
