The verdict in three sentences
A clear returns policy is a conversion argument: the customer dares to buy because they know they can send it back. But without a framework, returns destroy margin, especially in fashion where they hit 15-25 %. The fix: a sharp 7-14 day window, an owned return cost, and exchange favoured over refund.
Framing the returns policy by category
Not all categories are equal. Fashion is returned a lot (size, colour), electronics less but with a value stake, food almost never. Your policy must adapt, not be uniform.
| Category | Return rate | Average return cost | Recommended policy |
|---|---|---|---|
| Fashion & clothing | 15-25 % | KES 400-800 | Free exchange, refund with conditions |
| Shoes | 20-30 % | KES 500-800 | Size guide + exchange |
| Electronics | 5-10 % | KES 500-800 | Warranty + return if faulty |
| Cosmetics | 3-6 % | KES 300-450 | Return if unopened |
| Groceries | < 2 % | not taken back | Refund if defective |
| Accessories | 8-12 % | KES 300-500 | Exchange favoured |
*2026 order of magnitude, East and West African e-commerce.*
Reverse logistics and mobile money refunds
A return doesn't end at approval: you must collect the product, inspect it, restock it, and refund. Each step costs. The mobile money refund (M-Pesa, Paystack) must be fast — 24 to 72 hours — to preserve trust, but an exchange avoids the cash outflow entirely.
| Return step | Target time | Cost / stake |
|---|---|---|
| Customer request | Immediate | Clear form, reason |
| Return window | 7-14 days | Beyond: justified refusal |
| Collection / drop-off | 1-3 days | KES 300-800 logistics |
| Product inspection | 24-48 h | Anti-fraud, condition |
| Mobile money refund | 24-72 h | Cash outflow |
| Exchange (alternative) | 2-4 days | Margin preserved |
*2026 estimate. An exchange often costs 30-50 % less than a full cash refund.*
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Mini case study
Awa runs an online fashion store in Nairobi: 500 orders/month, average basket KES 4,000. Her return rate is 20 %, i.e. 100 returns. Without a clear policy, she refunded everything: KES 400,000 out each month plus KES 50,000 in reverse logistics. By making exchange the priority (size guide, free exchange, refund only if no exchange is possible), 65 % of returns become exchanges. She now refunds only 35 returns (KES 140,000) and keeps KES 260,000 of revenue as exchanges. The visible trust also lifts her conversion by 2 points.
FAQ
What return window should I offer? Between 7 and 14 days depending on category. Too short worries the customer, too long invites abuse; 14 days is a good balance for fashion.
Should the customer pay return fees? It depends on the reason. For a fault or your error, covering the cost is the norm; for a simple change of mind, a KES 300-800 cost on the customer is legitimate.
How do I refund via mobile money? The refund goes to the original M-Pesa or mobile money account, ideally within 24 to 72 hours. Refund speed is a key driver of trust and repurchase.
Why favour exchange over refund? An exchange keeps the revenue and avoids a cash outflow while satisfying the customer. It often costs 30-50 % less than a full refund.
How do I limit fashion returns? A precise size guide, faithful photos and customer reviews sharply reduce size- or disappointment-related returns, which make up the majority of cases.
Let's talk about your project. We set up your returns policy, reverse logistics and automated mobile money refunds to protect your margin. 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.
