The verdict in three sentences
Cash on delivery (COD) still rules in Senegal because it reassures a buyer who remains wary of online prepayment, but it hides a 20 to 35 % failure rate and a return cost of 1,500 to 3,000 FCFA per parcel. Prepaid Wave/OM (1 to 1.5 % fees) collects instantly, eliminates phantom returns and improves cash flow. The right strategy is not binary: you must route by basket and by customer profile, encouraging prepayment with a small 3 to 5 % discount.
COD vs prepaid: the real cost
The table below compares, in 2026 ballpark figures, the two modes for a Dakar online store with an average basket of 18,000 FCFA.
| Criterion | Cash on delivery | Prepaid Wave/OM |
|---|---|---|
| Collection fee | 0 % (but cash to handle) | 1-1.5 % (180-270 FCFA) |
| Failure / refusal rate | 20-35 % | 2-5 % |
| Cost of a return | 1,500-3,000 FCFA | near zero |
| Collection delay | D+2 to D+5 (cash pickup) | Instant |
| Cash tied up | High | Low |
| Effect on conversion | High (reassures) | +3-5 % with discount |
COD costs nothing in visible fees but destroys value through returns: on an 18,000 FCFA basket, a 2,500 FCFA return equals 13.9 % of the basket gone up in smoke, far more than the 1.5 % of prepaid.
Decision table by basket
Not every basket deserves the same treatment. The higher the basket, the more COD risk costs and the more prepayment is required.
| Basket | Recommended mode | Incentive | Return risk | Rationale |
|---|---|---|---|---|
| < 10,000 FCFA | COD or prepaid | 3 % discount if prepaid | Low | Thin margin, cheap return |
| 10,000-30,000 FCFA | Prepaid first | 4 % discount | Medium | Return weighs on margin |
| 30,000-75,000 FCFA | Prepaid required | 5 % discount + free shipping | High | Very costly return |
| > 75,000 FCFA | Prepaid only | Guarantee + installments | Critical | No acceptable COD |
| New unverified customer | Prepaid advised | 5 % discount | High | No reliable history |
Mini case study
Awa runs an online fashion store in Dakar and receives 100 orders/week at 18,000 FCFA, that is 1,800,000 FCFA in gross orders. In 100 % COD, 28 % fail (28 parcels), with a return cost of 2,500 FCFA each, that is 70,000 FCFA lost per week, plus tied-up stock. By moving 70 % of orders to prepaid Wave thanks to a 4 % discount, her overall failure rate drops to 11 %, bringing the return cost down to 27,500 FCFA. She saves 42,500 FCFA per week (more than 2 million FCFA a year), even after funding the discounts and paying 1 % Wave fees on prepaid.
FAQ
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Why does COD fail so much in Senegal?
In 2026, 20 to 35 % of COD parcels fail: customer absent, refusal on delivery, vague address or change of mind. Each failure costs 1,500 to 3,000 FCFA in return, not counting blocked stock.
Is a prepayment discount worth it?
Yes. A 3 to 5 % discount costs less than a 20-35 % return rate. It also boosts conversion by reducing hesitation at checkout.
Does prepaid scare off wary customers?
That's why you route, not impose. You keep COD on small baskets and loyal customers, and push prepaid on large baskets and new unverified customers.
What collection delay with prepaid?
Instant with Wave and Orange Money, versus D+2 to D+5 for COD where you wait for cash pickup by the courier. The cash-flow difference is considerable.
Can you offer installment payment online?
Yes, on high baskets (> 75,000 FCFA), a Wave schedule in 2 or 3 installments secures the sale while completely avoiding COD risk.
Let's talk about your project. We configure your store with COD/prepaid routing, automatic discounts and Wave/OM collection. 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.
