The verdict in three sentences
Cash on delivery (COD) reassures the customer and adds +12 to +20 % conversion, but it generates 15-30 % refusals/returns and locks up your cash for 3 to 7 days. Prepaid mobile money secures every order but deters the 40-60 % of customers who insist on paying when they see the parcel. The most profitable 2026 solution: a MoMo deposit at checkout + balance on delivery, which cuts refusals by about -50 % while keeping the reassurance effect.
The three models head to head
Each model trades off conversion, refusal risk and cash-collection speed. Here is the concrete impact for an Accra shop in 2026.
| Criterion | Pure COD | Mandatory prepaid | Deposit + balance |
|---|---|---|---|
| Conversion effect | +12 to +20 % | Baseline | +8 to +14 % |
| Refusal/return rate | 15-30 % | 1-3 % | 7-15 % |
| Cash collected | Day+3 to Day+7 | Immediate | Partial immediate |
| Cost of a refusal | 1,500-3,000 FCFA | Near zero | Halved |
| Customers demanding it | 40-60 % | — | Accepted compromise |
The true cost of a COD refusal
A refused parcel costs more than the outbound trip. Count the return, restocking and tied-up cash. Here is the 2026 breakdown (order of magnitude).
| Item | Cost per refusal |
|---|---|
| Outbound (last-mile) | 1,000-2,000 FCFA |
| Return leg | 500-1,500 FCFA |
| Lost packaging | 200-500 FCFA |
| Handling time | 300-800 FCFA |
| Total order of magnitude | 2,000-4,800 FCFA |
Mini case study
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Ibrahim, who runs a ready-to-wear shop in Accra, was on pure COD: out of 100 orders a month, 24 refusals, roughly 72,000 FCFA in monthly losses (3,000 FCFA/refusal). By requiring a 2,000 FCFA deposit via mobile money at checkout, his refusals dropped to 11 % (11 refusals), i.e. 33,000 FCFA in losses: 39,000 FCFA saved per month. Bonus: the deposit pre-funds part of the last-mile and improves cash flow.
FAQ
Is COD mandatory in West Africa? Not mandatory, but 40-60 % of 2026 customers still demand it out of mistrust. Removing it abruptly can cost up to -20 % conversion. Better to phase it out gradually with a deposit.
What does a refusal really cost? Between 2,000 and 4,800 FCFA all in (outbound, return, packaging, time). At 20-30 % refusals, it is the top margin leak of a COD shop.
Does a mobile money deposit put customers off? A small deposit (1,500-2,500 FCFA or 10-20 % of the basket) is well accepted because the balance stays payable on delivery. It cuts refusals by about -50 % without breaking conversion.
How long to collect cash under COD? Expect Day+3 to Day+7 depending on the courier, versus immediate collection with prepaid. That tied-up cash is a hidden COD cost.
Do Wave and Orange Money work for the deposit? Yes, they are the priority methods: instant payment, webhook confirmation, low fees. We integrate both with automatic order confirmation.
Let's talk about your project. We set up a Wave/Orange Money deposit + balance on delivery on your store, with refusal tracking. 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.
