The verdict in three sentences
A small prepaid deposit turns a vague intention into a real commitment: a customer who paid 10 GHS almost never refuses the parcel. In Kumasi, a fixed deposit cuts no-shows by about 65 % without collapsing conversion. It is the cheapest lever to protect your margin while keeping the reassuring feel of cash on delivery.
How a deposit changes behaviour
A refused delivery rarely comes from fraud: it is usually an impulse buy, a hesitation, a duplicate order. Asking for a deposit creates healthy friction that removes these fragile orders. Money paid upfront becomes a psychological and financial commitment.
| Parameter | No deposit | GHS 10 / 20 % deposit |
|---|---|---|
| No-show / refusal rate | High baseline | -65 % |
| Deposit balance | GHS 0 | Refundable on legitimate cancellation |
| Effect on conversion | Baseline | -5 to -8 % |
| Rider trips avoided | 0 | ~22 / 200 orders |
| Monthly logistics saving | GHS 0 | Meaningful |
| Cash collected upfront | GHS 0 | 20 % of revenue |
Across 200 orders, moving refusals down by two-thirds avoids about 22 refused parcels. At the local cost of a round trip, that is a solid monthly saving, plus a chunk of cash collected upfront every month.
Cotonou: the same principle in FCFA
In Cotonou, sellers who require a 20 % mobile money deposit see refusals fall from 15 % to 4 % in 2026. The amount is modest but enough to screen out non-serious orders.
| Basket size | Recommended deposit | Refundable? | Expected effect on refusals |
|---|---|---|---|
| Under GHS 200 | 10 % or flat GHS 10 | Yes | -50 % |
| GHS 200 to 600 | 20 % | Yes | -70 % |
| GHS 600 to 1,200 | 30 % | Yes | -80 % |
| Over GHS 1,200 | Full prepayment | N/A | -90 % |
How to justify the deposit to customers
The message matters as much as the rule. Frame the deposit as a reservation, not distrust: "A GHS 10 deposit via MoMo confirms your order and reserves your item. You pay the balance on delivery." State that it is refundable on legitimate cancellation: this guarantee removes 80 % of objections.
Mini case study
Akosua sells clothing in Kumasi: 180 orders/month, average basket GHS 260, refusals near 18 % (32 parcels). She introduces a flat GHS 10 deposit via MTN MoMo and Telecel Cash. No-shows drop about 65 % to 11 parcels. She avoids roughly 21 rider trips and collects a deposit on every order. Conversion dips about 6 %, some 11 fewer orders, but the ones that remain are far more reliable: her net margin clearly improves.
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FAQ
Won't a deposit scare my customers away?
Slightly: expect a 5 to 8 % conversion drop in Kumasi in 2026. But the remaining orders are far more reliable, and the logistics savings more than offset the few lost sales.
What deposit percentage should I choose?
20 % is the sweet spot for an average basket. Under GHS 200 a flat GHS 10 works; above GHS 1,200, require full prepayment.
Do I have to refund the deposit on cancellation?
Yes for any legitimate cancellation (reasonable notice, item unavailable). This refund guarantee removes most objections and protects your reputation.
How do I collect the deposit technically?
A MoMo payment link generated at WhatsApp confirmation is enough. A checkout integrating MTN, Telecel and Wave automates collection and tracks the remaining balance due.
Does the deposit work for new customers too?
Yes, that is where it helps most. New customers drive most refusals: a deposit filters them without blocking serious buyers.
Let's talk about your project. We set up an automated MoMo deposit system on your store to cut refusals starting this month. 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.
