The verdict in three sentences
A clear return policy is a sales argument, not a cost you suffer: it reassures the wary buyer and lifts conversion. The key in 2026: a 7-day window, an exchange-first flow before any refund, and a 10% restocking fee to cover reverse logistics. Done well, it cuts refunds by 30% by turning them into exchanges or store credit.
The parameters of a balanced policy
Too loose, it drains margin; too strict, it kills trust. Here are the levers and their reference values.
| Parameter (2026 order of magnitude) | Typical value | Effect |
|---|---|---|
| Return rate (fashion) | 8% | Calculation base |
| Return window | 7 days | Limits abuse |
| Restocking fee | 10% | Covers reverse logistics |
| Reverse-logistics cost | ~ZAR 80 / parcel | Absorb or re-bill |
| Exchange-first policy | Yes | Cuts refunds by 30% |
| Refund vs store credit | 60 / 40 | Preserves cash flow |
The principle: refund when you must, but offer exchange or credit first, which keeps the revenue inside the store.
Mobile money refund or store credit: the trade-off
The refund method weighs on cash flow. Store credit keeps money in the shop; a mobile money refund sends cash out but reassures.
| Refund method | Typical share | Cash-flow impact |
|---|---|---|
| Mobile money refund | 60% | Immediate cash outflow |
| Store credit | 40% | Cash kept, likely rebuy |
| Direct exchange (same value) | Prioritized | No cash outflow |
| Restocking fee retained | 10% | Partly covers the cost |
By pushing exchange-first and store credit, a store keeps on average 40 to 50% of the return value instead of refunding it fully.
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Mini case study
Thabo runs a fashion store in Johannesburg, 1,000 orders/month, 8% return rate (80 returns). With no policy, he refunds everything, a full cash outflow on 80 items. He sets up exchange-first, a 10% restocking fee and store credit by default. Result: refunds drop 30% (56 instead of 80), 40% of the remaining returns become credit, and the restocking fee covers reverse-logistics cost (~ZAR 80/parcel). On an average basket equivalent to FCFA 30,000, he keeps inside his store the equivalent of several hundred thousand FCFA a month that would otherwise leave as cash.
FAQ
Isn't a generous return policy expensive? On the contrary: it raises conversion by removing the buyer's fear. The extra return cost is more than offset by the sales won.
Why a 7-day window? It's long enough to reassure the buyer, short enough to limit abuse and allow quick restocking of the product.
Is the 10% restocking fee justified? Yes: it covers reverse logistics (~ZAR 80/parcel) and discourages frivolous returns without blocking legitimate ones.
Exchange or refund: which to favor? Exchange first, then store credit, finally a mobile money refund. That order cuts refunds by 30% and preserves cash flow.
How to handle mobile money refunds? Refund on the same channel as payment (Wave, Orange Money) for traceability. Favor store credit when the buyer accepts.
Let's talk about your project. We integrate a clear return policy and an exchange-first flow into your store. 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.
