The verdict in three sentences
A return is never free: it costs 1.5 to 2.5 times the outbound delivery once you add pickup, quality control, restocking and refund. Without a clear policy, fashion and electronics can see 5-12% of margin disappear into reverse logistics. Useful paradox: a readable return policy raises conversion, because it removes the purchase barrier.
The true cost of a return, broken down
Many merchants only mentally charge the return shipping. The real cost sums four lines. Here is a 2026 order of magnitude for a fashion parcel.
| Item | Estimated cost | Comment |
|---|---|---|
| Pickup / return transport | 1,500-3,000 FCFA | by zone and weight |
| Quality inspection | 500-1,000 FCFA | agent time |
| Restock / reconditioning | 300-800 FCFA | labeling, packaging |
| Refund processing | 200-500 FCFA | fees + time |
| Total | 2,500-5,300 FCFA | i.e. 1.5-2.5x outbound |
On a 2,000 FCFA outbound delivery, a full return therefore easily costs 3,000-5,000 FCFA — often more than the product margin.
Return rate and margin by niche
Risk differs by what you sell. Fashion suffers from fit, electronics from technical disappointment; groceries return little but manage breakage.
| Niche | Return rate | Share resold | Margin impact |
|---|---|---|---|
| Fashion / apparel | 15-30% | 70-85% | high |
| Electronics | 5-10% | 60-80% | medium-high |
| Cosmetics | 3-8% | 30-50% | medium |
| Groceries | 1-3% | low (breakage) | low |
| Crafts | 2-6% | 80-90% | low |
A fashion store with 25% returns and 4,000 FCFA cost per return must build this line into pricing, or margin erodes unnoticed.
Mobile money refund vs store credit
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The refund channel matters as much as logistics. A mobile money refund is fast (often within 24-72h) and reassuring; store credit protects your cash flow and drives repeat purchase. Best practice: offer bonus credit by default (+5 to +10%), with mobile money refund as an option. A stated and honored refund window reduces disputes and negative reviews.
Mini case study
Thandi sells apparel online in Johannesburg. She handles 200 orders/month with 24% returns, i.e. 48 returns. At 4,000 FCFA full cost per return, reverse logistics costs her 192,000 FCFA/month. By clarifying her policy (size guide, accurate photos, +8% bonus credit) she cuts returns to 17%, i.e. 34 returns: 136,000 FCFA/month. Saving: 56,000 FCFA/month, plus higher conversion from a reassuring displayed policy.
FAQ
Why does a return cost so much? Because it sums pickup, inspection, reconditioning and refund — 1.5 to 2.5 times outbound delivery, often 2,500-5,300 FCFA for a fashion parcel.
What return rate to expect in fashion? Between 15 and 30% depending on positioning and product-page quality. A good size guide and accurate photos cut this rate noticeably.
Refund in mobile money or store credit? Bonus store credit (+5 to +10%) protects cash flow and drives repeat purchase; offer mobile money refund as an option for customers who demand it.
Does a clear return policy really sell more? Yes: by removing perceived risk, it lifts conversion by several points, especially in fashion and electronics.
What refund window should I target? A mobile money refund within 24-72h after receiving and inspecting the return is a solid 2026 standard, clearly displayed.
Let's talk about your project. We structure your return policy and reverse logistics 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.
