What you really keep from a noon sale
From the price the customer pays, first take out VAT (5% in the UAE, 15% in Saudi Arabia). noon then charges a referral fee by category, at least 1 AED per item, and, if you use Fulfilled by noon, an outbound fulfilment fee per unit. Subtract your product and inbound costs and what is left is your profit. Storage of slow-moving stock and returns can add to this; include them as an allowance.
Illustrative inputs: a 15% referral fee and a 9 AED FBN fee are assumed. Take the rate for your category from noon's fee schedule.
- Product cost
- AED 40.00
- FBN fulfilment fee
- AED 9.00
- Referral fee
- 15% (min. 1 AED)
- VAT
- 5%
| List price | AED 80.08 |
| Customer pays (incl. tax) | AED 80.08 |
| Indirect tax collected for authorities VAT / GST / sales tax — not seller revenue | −AED 3.81 |
| Net revenue | AED 76.27 |
| Referral fee Marketplace / referral · 15% of item price incl. tax (80.08); min 1 | −AED 12.01 |
| FBN fulfilment fee per unit Marketplace fulfillment · fixed per order | −AED 9.00 |
| Product cost 40.00 AED per unit | −AED 40.00 |
| Contribution profit Contribution margin 20% | AED 15.25 |
| Profit after allocated overhead | AED 15.25 |
| Margin | 20% |
| Markup on total cost | 25% |
Compare with other offers
noon groups sellers of the same product on one page. Enter the other sellers' prices below the calculator to see where you rank, the median price and what you would earn by matching each offer. The comparison warns you when matching would take you below your minimum margin.