A Margin and Pricing Calculator for Local E-commerce in Kampala in 2026

The verdict in three sentences

Most Kampala sellers price on COGS + a guess and quietly sell at a loss once delivery and fees are deducted. A proper calculator layers every cost: COGS, payment fee (Wave ~1%, card ~2.9%), delivery, packaging, refusal reserve, ad CAC, returns reserve, then targets a net margin. Worked example: a 12,000 FCFA sell price on 6,500 FCFA cost leaves only ~1,100 FCFA net (9%) after all costs, not the 46% gross it appears.

The full cost stack

The trap is thinking in gross margin (price - COGS). Real net margin deducts seven line items. Here is the stack for three sell prices, COGS fixed at 6,500 FCFA, 2026 order of magnitude in Kampala.

At 10,000 FCFA, the seller thinks they make 35% gross but keeps only 2% net — one incident (one more refusal, a CAC rise) tips them into the red. Price isn't a comfort number; it's the output of a calculation.

The minimum viable price for a 25% net margin

If the goal is 25% net margin, you invert the math: target margin + all costs = floor price. Here's how prepaid share and the free-shipping threshold shift that floor.

The higher the prepaid share, the smaller the refusal reserve and the lower the floor price: collecting upfront via Wave literally lets you sell cheaper while keeping 25% net. The free-shipping threshold, meanwhile, must be set above the average basket so it doesn't eat the margin.

Mini case study

Mariama sells cosmetics in Kampala at 12,000 FCFA, COGS 6,500. She thought she made 46% margin; the calculator reveals ~1,180 FCFA net (10%). She makes two changes: move 45% of payments to Wave prepaid (refusal reserve from 500 to 250 FCFA) and raise the price to 12,800 FCFA. New net margin: ~2,230 FCFA (17%). On 350 orders/month, she goes from ~413,000 FCFA to ~780,000 FCFA of monthly net margin, without losing volume thanks to the prepayment incentive.

FAQ

Why doesn't my gross margin reflect my profit?

Because gross ignores delivery, payment fees, ads, packaging and refusal/return reserves. On a 12,000 FCFA price at 46% gross, often only ~9 to 10% net remains.

How much are the payment fees to include?

Budget an order of magnitude of ~1% for Wave and ~2.9% for card in 2026. On a 12,000 FCFA basket, that's 120 FCFA via Wave versus ~350 FCFA via card — steering to Wave protects margin.

What minimum price should I target for a 25% net margin?

It depends on prepaid share: with 0% prepayment, the floor is around 15,800 FCFA for a 6,500 COGS; with 70% prepaid, it drops to ~13,700 FCFA. Prepayment lowers the floor price.

How does prepayment improve margin?

By eliminating cash-on-delivery refusal, it removes the refusal reserve (often 400 to 600 FCFA/order) and the lost delivery. Moving from 0 to 45% prepaid can add 3 to 6 points of net margin.

Where should the free-shipping threshold go?

Above your average basket, typically 1.3 to 1.5 times it, to push add-ons without giving free shipping on small baskets that can't bear the cost.

Let's talk about your project. We integrate a per-order margin calculator into your store — Wave fees, refusal reserves, shipping thresholds — so you never sell at a loss again. WhatsApp +221 77 596 93 33.