The verdict in three sentences
Cash on delivery (COD) reassures buyers but its failure rate hovers around 20 %, versus 3 % for prepaid. Every refused parcel costs you about GHS 40 in lost transport, not counting tied-up stock. The partial Mobile Money deposit is the best compromise: it cuts failures by 12 points while keeping the customer's trust.
COD vs prepaid: the 2026 numbers
COD still dominates West Africa because buyers want to see the product before paying. But it shifts all the risk onto the seller. Here are the 2026 orders of magnitude in Accra.
| Criterion | Full COD | MoMo deposit | Full prepaid |
|---|---|---|---|
| Failure rate | 20 % | 8 % | 3 % |
| Average cost of a failure | GHS 40 | GHS 40 | GHS 40 |
| Cash tied up | High | Medium | None |
| Buyer trust | Strong | Strong | Medium |
| MoMo fee (~1.5 %) | GHS 0 | ~GHS 2.5 | ~GHS 5 |
The Mobile Money deposit commits the customer without demanding full upfront payment. A buyer who put down GHS 20 rarely backs out at the door.
The true cost of a failed delivery
A refusal is not just a lost sale: it is a hard cost eating into the margin of every successful order. Simulation on 1,000 orders.
| Scenario | Failures | Cost of failures | Margin preserved |
|---|---|---|---|
| COD 20 % | 200 | GHS 8,000 | Baseline |
| MoMo deposit 8 % | 80 | GHS 3,200 | +GHS 4,800 |
| Prepaid 3 % | 30 | GHS 1,200 | +GHS 6,800 |
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Moving from full COD to a MoMo deposit saves GHS 4,800 per 1,000 orders without sacrificing volume the way forced prepaid would. The winning play is hybrid by zone: prepaid or deposit required in high-failure neighborhoods, COD tolerated in reliable areas and for repeat customers.
Mini case study
Ibrahim sells shoes in Accra, 600 orders/month on full COD with 22 % failure (132 refused parcels, GHS 5,280 lost). He requires a GHS 20 MoMo deposit on every first order and in risky zones. His failure rate drops to 9 % (54 refusals, GHS 2,160). Net gain: GHS 3,120 per month, with almost no volume loss since the deposit stays modest.
FAQ
Why does COD fail so much in Accra? No financial commitment, vague addresses and cancelled impulse buys. The rate sits around 20 % in 2026, versus 3 % for prepaid.
Does a MoMo deposit scare customers off? Rarely, if it stays modest (GHS 15 to 25) and is well explained. The volume dip is marginal against 12 fewer points of failure.
What deposit amount should I pick? An order of magnitude of 10 to 20 % of the basket, capped so it does not frighten. The goal is psychological commitment, not financing the order.
Can I mix COD and prepaid? Yes, it is recommended: prepaid or deposit for new customers and risky zones, COD for loyal ones. A well-configured store applies these rules automatically.
Let's talk about your project. We set up Mobile Money deposits and zone-based COD rules in your store to melt away your delivery failures. 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.