The verdict in three sentences
Cash on delivery (COD) reassures the customer but drives 12 to 20% refusals at the door and ties up your cash for days. Prepaid mobile money (MTN MoMo) removes refusals and frees cash, but lowers conversion because it demands trust. The 2026 winner is hybrid: a 20 to 30% deposit in mobile money at order time, the balance on delivery, which cuts the refusal rate threefold.
The real cost of cash on delivery
COD still dominates the Ghanaian market (45 to 60% of orders), but each refusal is expensive: a wasted round-trip, a returned product, blocked cash.
| Indicator | 100% COD | Hybrid (deposit) | 100% prepaid |
|---|---|---|---|
| Door refusal rate | 12-20% | 4-7% | 0-2% |
| Average return cost | 2,000-4,000 FCFA | 2,000-4,000 FCFA | — |
| Cash availability | D+3 to D+7 | D+0 (deposit) | D+0 |
| Checkout conversion | High | Medium-high | Medium |
| Typical market share | 45-60% | Growing | 20-30% |
A 15% refusal rate on 100 orders means 15 returns at 3,000 FCFA = 45,000 FCFA up in smoke, plus lost revenue on products returned damaged or expired.
Why the deposit changes everything
Asking for 20 to 30% at order time turns a hesitant customer into a committed one: someone who paid a deposit actually shows up or receives the parcel. It's the best anti-refusal filter.
| Hybrid lever | Effect | 2026 order of magnitude |
|---|---|---|
| 20-30% MoMo deposit | Cuts refusals threefold | 15% → 5% |
| Balance on delivery | Keeps trust | Conversion preserved |
| Immediate cash | Funds stock | +40% available cash |
| Mandatory prepay above a threshold | Protects big orders | Threshold ~50,000 FCFA |
| Dispute reduction | Fewer returns | -30% |
Above a certain amount (order of magnitude 50,000 FCFA), it's wise to switch to mandatory prepayment: the risk of a big refusal outweighs the conversion gain.
Mini case study
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Kwame sells appliances in Accra, 200 orders/month, average basket 35,000 FCFA. On 100% COD with 16% refusals, he loses 32 orders × 3,000 FCFA return = 96,000 FCFA/month, plus blocked cash. Switching to hybrid (25% deposit, i.e. 8,750 FCFA at order time), his refusals drop to 5% (10 orders), i.e. 30,000 FCFA/month in returns. Savings: 66,000 FCFA/month, and he collects 1,750,000 FCFA of deposits immediately each month to fund his stock.
FAQ
Does mandatory prepayment really scare customers off?
Partly yes, especially on a first purchase: conversion falls because the Ghanaian market remains used to COD. That's why hybrid is better — the deposit commits the customer without requiring 100% upfront.
What deposit percentage should I ask for?
Between 20 and 30%. Below 20%, the anti-refusal effect is weak; above 30%, conversion suffers. A 25% deposit is a good balance for most shops.
How do I collect the deposit easily?
Via MTN MoMo at order time, with automatic confirmation. A mobile money payment link sent over WhatsApp works very well and settles in under a minute.
When should I require full prepayment?
Above a high amount (order of magnitude 50,000 FCFA) or for fragile/perishable products. The cost of a refusal on a big order far exceeds the gain of one extra conversion.
Let's talk about your project. We set up hybrid MoMo deposit + balance-on-delivery payment on 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.
