The verdict in three sentences
In Nairobi, badly calibrated free delivery is the silent margin killer: offering free shipping from FCFA 10,000 of purchase often loses money on every outer-zone parcel. The right setup combines a zone grid (centre vs outskirts), weight tiers, and a free-shipping threshold set around FCFA 25,000. It must fold in rider settlement so the real cost, about FCFA 250/km, doesn't eat the profit.
Know your real cost before setting a price
Many shops set "FCFA 1,000 delivery everywhere" without knowing what a trip truly costs. Yet a downtown parcel and an outer-zone parcel share neither the same distance, nor time, nor failure risk.
| Zone | Avg distance | Real cost | Recommended charge |
|---|---|---|---|
| Centre (CBD) | 4 km | FCFA 1,000 | FCFA 1,000 |
| Intermediate | 9 km | FCFA 1,800 | FCFA 1,500-2,000 |
| Outskirts | 15 km | FCFA 2,900 | FCFA 2,500-3,000 |
| Out of town | 25 km+ | FCFA 4,500 | Quote-based |
Real cost estimated at ~FCFA 250/km including fuel, time and rider settlement, 2026 order of magnitude.
Weight tiers and free-shipping threshold
Beyond zone, weight changes cost (bulk, second trip, boda vs cargo). A three-tier grid covers most cases without complexity for the customer.
| Weight tier | Surcharge | Product example |
|---|---|---|
| 0-2 kg | FCFA 0 | Cosmetics, light textiles |
| 2-5 kg | +FCFA 500 | Shoes, small appliances |
| 5-10 kg | +FCFA 1,200 | Boxes, clothing bundles |
| 10 kg+ | Quote-based | Furniture, bulk volume |
The free-shipping threshold is a marketing lever, not a gift: set too low, it destroys margin; set near the break-even point (FCFA 25,000), it lifts the average basket while covering logistics cost. A typical A/B test shows a FCFA 25,000 threshold raises the average basket by 12-18% with no margin loss, where a FCFA 10,000 threshold melts profit. The same zone + weight matrix applies with boda partners and an equivalent threshold (KES 3,000).
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Mini case study
Koffi, an online grocer in Nairobi, offered free delivery from FCFA 10,000. On 500 orders/month, 40% went to the outskirts at a real cost of FCFA 2,900 but billed at 0: an absorbed loss of FCFA 580,000/month. He raises the threshold to FCFA 25,000 and charges the outskirts FCFA 2,500 below cost: the loss drops to FCFA 90,000/month and the average basket climbs 14%. Combined net gain estimated at over FCFA 550,000/month.
FAQ
Is free delivery mandatory to sell? No. A well-placed free-shipping threshold (around FCFA 25,000) converts better than total free shipping that nibbles margin. Customers accept a clear, fair delivery charge.
How do I set cost per km with no experience? Start at about FCFA 250/km in the city (fuel + time + rider), then refine over the first weeks with real route data.
Do I really need weight tiers? Yes as soon as you sell bulky items: an 8 kg box costs twice as much as a cosmetics parcel, and charging the same destroys margin on large items.
How do I handle rider settlement? Fold it into cost per km from the start: the price charged to the customer must cover the rider's pay, otherwise product margin pays for delivery instead.
Does a free-shipping threshold really lift the basket? Yes, usually by 12-18% when set just above the current average basket, because customers add an item to reach free shipping.
Let's talk about your project. We build your zone + weight grid and your profitable free-shipping threshold straight into 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.
