The verdict in three sentences
Preorders and local dropshipping let you sell before you buy, so without tying up cash. You collect a 30-50% deposit via Wave or Orange Money, order from the supplier with a 5-10 day lead time, then deliver and collect the balance. The trade-off is thinner margin, around 22% versus 35% with held stock, but the model stays cash positive from the first sale.
How the cash-positive model works
The idea is to flip the usual order: the customer pays part before you buy. Here's the flow of a typical preorder.
| Step | Action | Cash |
|---|---|---|
| 1 | Customer pays 40% deposit | +6,000 FCFA |
| 2 | You order from supplier | -10,000 FCFA |
| 3 | Supplier delivers (5-10 days) | 0 |
| 4 | Customer pays 60% balance | +9,000 FCFA |
| 5 | Margin banked | +5,000 FCFA |
On an item sold at 15,000 FCFA with a supplier cost of 10,000 FCFA, the 40% deposit covers a good part of the purchase. You never front the full amount, and you carry no unsold stock.
Preorder versus held stock
Each model has its strengths. Preorders protect cash; held stock maximizes margin and delivery speed. Here's the 2026 trade-off.
| Criterion | Preorder | Held stock |
|---|---|---|
| Net margin | ~22% | ~35% |
| Cash tied up | Low | High |
| Customer wait | 5-10 days | Immediate |
| Unsold risk | Near zero | Real |
| Cancellation rate | ~15% | ~3% |
The watch point is the ~15% preorder cancellation rate: some customers back out during the wait. A clear refund policy for supplier delays, shown before purchase, cuts disputes and reassures the buyer.
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Mini case study
Ibrahim, launching a sneaker store in Abidjan, doesn't have the 2,000,000 FCFA needed for initial stock. He goes preorder: a 40% deposit collected on Mobile Money, a local supplier delivering in 7 days. On 50 pairs sold at 35,000 FCFA, he collects 700,000 FCFA in deposits that fund his purchases. Despite 7 cancellations (14%), he clears a 22% margin, roughly 330,000 FCFA, without fronting a franc of stock.
FAQ
What deposit should I ask for on preorders? Between 30 and 50% of the price. A 40% deposit covers most of the supplier purchase while staying acceptable to the customer. Below 30%, you front too much cash.
What lead time should I quote? The local supplier lead time is around 5 to 10 days. Always quote the high end and deliver earlier: trust is won on punctuality.
Is the margin really lower? Yes, around 22% versus 35% with held stock, because you lose volume discounts. You trade margin for cash-flow safety.
How do I handle cancellations? The rate runs around 15%. A clear refund policy and a non-zero deposit filter out unserious buyers and limit losses.
Can I collect deposits on Mobile Money? Yes, Wave and Orange Money are perfect for deposits: instant collection, immediate confirmation and a record for your order tracking.
Let's talk about your project. We build your preorder store with Wave/OM deposits and automatic tracking. 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.
