Prices are totally within the seller's control. You can assign competitive prices to your products and modify them at any time, and the changes will reflect immediately on the noon website.
noon also offers you a great tool that recommends the most competitive prices based on the historical sales data of your products on noon.
Learn more about how to use the Price Optimization tool.
While determining or modifying your prices, you should always add the 5% VAT, the fees and the commissions.
- Fees & commissions are calculated on the prices inclusive of VAT.
- Fees and commissions vary according to the business model you'll be using to sell
your products (FBN or FBP).
- All noon fees and commissions are exclusive of VAT.
Determining prices for products sold using FBN:
First, determine the net revenue you'd like to generate from this sale. Then calculate and add the VAT and noon fees to it.
1. To sell a book, for example, we'd like to have a net revenue of AED 100 exclusive of VAT.
2. Then, calculate the fees & commissions (these are exclusive of VAT, so don’t forget to add the 5% VAT to them) on the price excluded of VAT (AED 100).
For FBN, there are four fees that currently apply:
(a) FBN fee
(c) Weight handling fee - only applicable to non-sort items (any size bigger than 30 cm and/or weight greater than 25 KG)
(d) Monthly storage fee
Here’s a demonstration of the book price calculation mentioned above:
|Fee||Fee description||Fee on book exclusive of VAT||Fee on book inclusive of VAT|
|FBN fee||6% on the selling price incl. of VAT, with min AED 2 and max AED 6 (excl. of VAT)||AED 6||AED 6.3|
|Commission for books||10%||AED 10||AED 10.5|
|Weight handling fee||Not applicable in this scenario as we are selling a book with dimensions smaller than non-sort items||N/A||N/A|
|Monthly storage fee||An accumulative charge of a maximum of 0.4% charged monthly/item, for SKUs with a stock quantity ≥ 5 units||AED 0.01333333||AED 0.014|
|Total fees incl. of VAT||AED 16.814|
3. Add the 5% VAT and the total fees (AED 16.814) to the initial expected net revenue amount: 100 AED exclusive of VAT
- Here’s how to calculate the VAT:
- [AED 100 (Price of item excluded of VAT) + AED 16.814 (noon fees)]*1.05 (Add the VAT on the total amount) = AED 122.65 (feel free to round up the number) AED 122.75
Therefore, AED 122.75 will be the Offer Price of your book when you list it on noon for sale via FBN. The offer price is the price customers will see on the website. Feel free to round up your offer prices so that it’s easier for customers to grasp.
Refer to the Fees & Commissions in UAE for a detailed break-down that will apply depending on the price of your product and the business model you'll be using.
Determining prices for products sold using Cross-dock FBP:
The following example explains how to price your products that are sold using cross-dock FBP.
1. First, determine the net revenue you'd like to generate from this sale, then add the VAT and fees to it.
In our book example, let's say that we'd like to have a net revenue of AED 100 exclusive of VAT.
2. Calculate the fees & commissions on your desired net revenue AED 100 (exclusive of VAT). For cross-dock FBP there are two fees that currently apply; the cross-dock fee and the commissions fee:
- The book’s commission (10%): AED 10
- Cross-dock fee (drop-off): AED 10
- Remember that the noon fees and commissions are exclusive of VAT, so add the 5% VAT to them as well, and the total fees & commissions is = 21 AED (inclusive of VAT)
3. Add both the total fees (AED 21) to your desired selling price (AED 100 exclusive of VAT):
Then, add the 5% VAT on the top of the price you calculated above.
- Total amount = AED 121 * 1.05
So, the price of your book will be AED 127.05 when you list it on noon for sale via FBP.
Refer to the Fees & Commissions in the UAE for a detailed break-down that will apply depending on the price of your product and the business model you'll be using.