The verdict in three sentences
Passing fees to the buyer mechanically lowers conversion by 6 to 11 points depending on order size. Absorbing them protects conversion but erodes margin, especially under 15 % net margin. The simple rule: on small baskets, absorb; on large baskets or B2B, pass on or share.
Three models, three consequences
There are three ways to handle transaction fees. Each shifts the cost — but also the risk of losing the sale.
| Model | Who pays | Conversion effect | Margin effect |
|---|---|---|---|
| Fee to buyer | The buyer (surcharge) | -6 to -11 % | Neutral |
| Fee to merchant | The seller | Neutral | -1 to -2.5 pts |
| Shared 50/50 | Both | -3 to -5 % | -0.75 pt |
A visible surcharge at checkout is conversion's worst enemy: seeing "+150 FCFA in fees" on a 3,000 FCFA basket is enough to make one buyer in ten abandon.
The arithmetic of average order value
The tipping point depends on the basket. Here is the 2026 impact of a 1.5 % fee by amount, at a 15 % net margin.
| Average order | 1.5 % fee | Margin at 15 % | Fee / margin |
|---|---|---|---|
| 3,000 FCFA | 45 FCFA | 450 FCFA | 10 % |
| 8,500 FCFA | 128 FCFA | 1,275 FCFA | 10 % |
| 15,000 FCFA | 225 FCFA | 2,250 FCFA | 10 % |
| 50,000 FCFA | 750 FCFA | 7,500 FCFA | 10 % |
| 150,000 FCFA | 2,250 FCFA | 22,500 FCFA | 10 % |
The fee stays proportionally identical, but the smaller the basket, the more visible and off-putting the surcharge. Below 8,500 FCFA, the conversion loss almost always costs more than the 1.5 % saved.
Mini case study
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Ibrahim runs a prepared-meals store in Abidjan, average order 6,000 FCFA, 900 orders/month. If he passes on 1.5 % (90 FCFA), he saves 81,000 FCFA in fees but loses ~9 % conversion, or 81 orders at 6,000 FCFA = 486,000 FCFA of lost revenue. By absorbing the fees, he only pays 81,000 FCFA. Net conclusion: absorbing earns him 405,000 FCFA more per month.
FAQ
At what order value should you pass fees on?
As a 2026 ballpark, above 20,000 to 30,000 FCFA the surcharge becomes proportionally negligible and conversion holds. Below 8,500 FCFA, almost always absorb.
Is the shared 50/50 model a good compromise?
Yes for mid-range baskets: it caps conversion loss at 3-5 % while costing only ~0.75 margin points. It is often the most profitable option between 8,500 and 20,000 FCFA.
How do you measure the real conversion loss?
Enable the surcharge on half your traffic for two weeks (A/B test) and compare completion rates. A 9 % drop at checkout is the typical figure seen on small baskets.
Can absorbing fees stay profitable at 12 % margin?
Yes, as long as the basket is low and conversion is sensitive. At 12 % margin, a 1.5 % fee eats only 1/8 of the margin; the lost sale costs eight times more.
Let's talk about your project. We configure your checkout to maximize both conversion AND margin, with the right fee model per segment. 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.
