The verdict in three sentences
The single flat delivery fee is a trap: you overcharge downtown and lose money on the outskirts, where the real cost is 2 to 3 times higher. A zone pricing engine automatically computes fees by neighborhood, protects your margin and reassures the customer. Measured bonus: showing transparent fees from the cart cuts abandonment by about 12%.
Why a single flat fee destroys margin
When you charge 1,500 FCFA for delivery everywhere, an order 800 meters away is profitable, but one 18 km out costs you 3,500 FCFA real. You lose 2,000 FCFA on that run. Meanwhile the downtown customer overpays and compares with rivals. Zoning brings each zone back to balance.
| Zone (2026 order of magnitude) | Indicative radius | Real carrier cost | Fee charged to customer | Delivery margin |
|---|---|---|---|---|
| Zone 1 — center | 0 - 5 km | 1,000 FCFA | 1,000 FCFA | 0% |
| Zone 2 — near | 5 - 10 km | 1,400 FCFA | 1,500 FCFA | +7% |
| Zone 3 — extended | 10 - 18 km | 2,200 FCFA | 2,300 FCFA | +5% |
| Zone 4 — outskirts | 18 - 30 km | 3,200 FCFA | 3,000 FCFA | -6% |
| Zone 5 — out of town | > 30 km | 4,500 FCFA | Pickup point only | n/a |
Rules that make money
A good engine combines 3 to 5 pricing zones with simple business rules. Free delivery above 25,000 FCFA raises the average basket while staying absorbable on nearby zones. Free-shipping thresholds must be zone-conditioned so you never gift a loss-making outskirts run.
| Pricing rule | 2026 parameter | Expected effect |
|---|---|---|
| Free delivery | 25,000 FCFA threshold | Average basket +8 to +15% |
| Target delivery margin | -5% to +10% | Cash-flow balance |
| Fees shown up front | From the cart | Abandonment -12% |
| Mandatory pickup point | Zone 5 | Cost under control |
| Premium time slot | +500 to +1,000 FCFA | Extra margin |
Mini case study
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Ibrahim runs an online grocery and delivered everything at a flat 1,500 FCFA. On 400 orders/month, 25% went to Zone 4 at a real cost of 3,200 FCFA: a loss of (3,200 - 1,500) × 100 = 170,000 FCFA/month. By switching on a 4-zone engine, he charges 3,000 FCFA in Zone 4 and forces pickup beyond it. Result: the outskirts loss drops to 20,000 FCFA, and the 25,000 FCFA free-shipping threshold lifts his average basket by 11%, for +190,000 FCFA of monthly value between saved margin and upsell.
FAQ
How many pricing zones do I need? Three to five suffice in most cities. Too many zones complicate management with no meaningful precision gain.
Does zoning scare customers off? No, as long as fees show from the cart. Transparency cuts abandonment by about 12%, whereas a last-step surprise makes it spike.
What free-shipping threshold should I set? Around 25,000 FCFA in 2026, zone-conditioned. On the outskirts, replace free shipping with a pickup point to avoid the loss.
How are fees computed per neighborhood? The engine maps each neighborhood to a zone via postal code or map selection, then applies the tariff and associated rules automatically.
What delivery margin should I target? Between -5% and +10%. Delivery is not a profit center but must never bleed your cash on the outskirts.
Let's talk about your project. We configure a custom zone engine wired into your store and your carriers. 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.
