On Noon the price a buyer pays is not what reaches your bank. Commission, fulfilment, storage, returns and VAT all come off first. Here is what each one is, and how to put them together.
Roman Urdu mein khulasa: Noon par munafa = qeemat (VAT ke baghair) − cost − commission − FBN fee − storage − fees par VAT − returns. Commission category ke hisaab se badalti hai, aur noon.partners par taaza rates check karein.
ملخص بالعربية: الربح على نون = السعر بدون ضريبة − التكلفة − عمولة الإحالة − رسوم التوصيل من نون − التخزين − ضريبة القيمة المضافة على الرسوم − المرتجعات. تختلف العمولة حسب الفئة، لذا راجع الأسعار الحالية في noon.partners.
Two ways to sell: FBN and FBP
| Fulfilled by noon (FBN) | Fulfilled by Partner (FBP) | |
|---|---|---|
| Who stores and ships | Noon, from its warehouse | You, from your own place |
| Delivery speed | Usually faster | Depends on you |
| Extra fees | Fulfilment fee per order, storage per month | Your own shipping and packing costs |
The fees, one by one
- Referral fee (commission): a percentage of the sale price. It depends on the category and sometimes on the price band, with a minimum amount per item.
- Fulfilment (outbound) fee with FBN: a fee per unit shipped, based on size, weight and price.
- Storage fee with FBN: a monthly charge based on the space your stock takes. Stock that stays a long time can cost extra.
- Returns: some orders come back. There can be a return handling fee, and you may lose the item's value or the shipping.
- VAT: Noon's fees are shown without VAT, so VAT is added on top. If you are VAT-registered, the price the buyer pays also includes VAT that you pass on to the government (5% in the UAE, 15% in Saudi Arabia).
Always check the current rates on Noon's seller help centre (noon.partners). Noon updates its fee tables from time to time.
A worked example (UAE, FBN)
These are example numbers only, to show the method. Use the rates for your own category.
| AED | |
|---|---|
| Price the buyer pays (with 5% VAT) | 120.00 |
| VAT you pass on | − 5.71 |
| Your product cost (landed in the UAE) | − 40.00 |
| Referral fee (example 15% of 120) | − 18.00 |
| FBN fulfilment fee (example) | − 9.00 |
| Storage (example, per unit) | − 1.00 |
| VAT on the fees (5% of 28) | − 1.40 |
| Returns (example) | − 2.00 |
| Profit per order | 42.89 |
That is about 37.5% of the price without VAT. Change the referral rate or the fulfilment fee for your category and the picture can change a lot, so do this for each product.
With Product Hunter
The Profit tab on every Noon product page takes off commission, payment fee, VAT, FBN or own shipping and returns, and shows profit per order, margin, ROI, the break-even price and a suggested price. Save your own rates as the default once.
Try Product Hunter free for 3 days. Research, profit and seller tools for Noon in one Chrome extension. Add to Chrome or ask us in the chat.