What Are Noon FBN Outbound Fees?
Noon FBN (Fulfilled by Noon) outbound fees cover the cost of the entire fulfillment process once a customer places an order: Noon's warehouse staff picks your item from the shelf, packs it using standard packaging materials, and hands it off for last-mile delivery to the customer.
Unlike DirectShip where you handle logistics entirely, FBN transfers the fulfillment burden to Noon in exchange for a predictable per-unit outbound cost. The trade-off is higher per-unit fees but zero operational complexity for storage, picking, and delivery.
Noon FBN Outbound Fee Components
- Picking Fee: Charged per unit for Noon's warehouse staff to locate and pick your item from the shelf
- Packing Fee: Cost of standard packaging materials (boxes, padding, tape) used for your product
- Delivery Fee: Last-mile delivery cost from Noon's warehouse to the customer's address, calculated by weight tier
- Closing Fee: Small per-transaction administrative charge (varies by category)
- VAT (5%): Applied to the total outbound cost for UAE transactions
Noon FBN Size Tiers
Noon categorizes FBN products into size tiers that determine the base outbound fee. Tiers are determined by maximum dimensions:
- Small Standard: Max dimension ≤ 15cm, weight ≤ 250g
- Medium Standard: Max dimension ≤ 25cm, weight ≤ 1kg
- Large Standard: Max dimension ≤ 35cm, weight ≤ 5kg
- Small Oversize: Max dimension ≤ 60cm, weight ≤ 10kg
- Medium Oversize: Max dimension ≤ 90cm, weight ≤ 20kg
- Large Oversize: Max dimension ≤ 120cm, weight ≤ 30kg
Note: Size tier limits and fees are indicative. Always verify current tiers and fees in the Noon Partner Hub as they are subject to change.
FBN Outbound Fee Formulas
Delivery Fee = Weight (kg) × Delivery Rate per kg
Subtotal Outbound = Picking Fee + Packing Fee + Delivery Fee + Closing Fee
VAT = Subtotal Outbound × 5%
Total Outbound Cost = Subtotal Outbound + VAT
Net Payout = Sale Price − Total Outbound Cost
Outbound % of Sale = (Total Outbound Cost ÷ Sale Price) × 100%
Real-World Example
Scenario: Medium Standard item sold at AED 150, 1.0kg, picking AED 1.50, packing AED 0.50, delivery AED 2.50/kg, closing AED 0
Picking Fee: AED 1.50
Packing Fee: AED 0.50
Delivery Fee: 1.0 kg × AED 2.50 = AED 2.50
Closing Fee: AED 0.00
Subtotal Outbound: AED 1.50 + 0.50 + 2.50 + 0.00 = AED 4.50
VAT (5%): AED 4.50 × 0.05 = AED 0.23
Total Outbound Cost: AED 4.50 + 0.23 = AED 4.73
Outbound as % of Sale: 4.73 ÷ 150 = 3.2%
Net Payout (outbound only): AED 150.00 − 4.73 = AED 145.27
FBN vs DirectShip Cost Comparison
Use this quick comparison to decide between FBN and DirectShip for a given product:
- High-volume, fast-moving items: FBN recommended (Noon Prime badge increases conversion)
- Low-weight, small items: DirectShip often cheaper (minimal weight charge)
- Heavy items: FBN may be more economical due to Noon's negotiated carrier rates
- New sellers without logistics experience: FBN eliminates operational complexity
- Sellers with existing warehouse capacity: DirectShip avoids double-handling of inventory
Frequently Asked Questions
How are Noon FBN size tiers determined?
Noon FBN size tiers are determined by three measurements: the longest side (max dimension), the total of all three sides (L + W + H), and the weight. A product is assigned to the smallest tier it fits within. Products near tier boundaries should be carefully measured — small packaging changes can drop you into a lower, cheaper tier.
Do I pay FBN outbound fees even if my item is not sold?
No. FBN outbound fees are only charged when an actual sale occurs and Noon picks, packs, and ships your item. You do not pay outbound fees on items sitting in Noon's warehouse. However, you do pay storage fees for the time your inventory remains in Noon's fulfillment center.
Can FBN and DirectShip be used for the same product on Noon?
Yes. Noon allows sellers to list the same product under both FBN and DirectShip modes simultaneously. This is called split fulfillment. Noon will allocate orders based on warehouse availability, customer location, and delivery speed preferences. Use this to optimize for both cost (DirectShip) and customer experience (FBN/Noon Prime).
What happens to FBN fees for returns on Noon?
Return handling fees apply when a customer returns an FBN-fulfilled item. The return fee is separate from the outbound fee and covers Noon's cost of receiving, inspecting, and restocking (or disposing of) the returned item. Return rates vary by product category and return reason.
Is VAT applied to FBN outbound fees on Noon UAE?
Yes. All Noon fees including FBN outbound fees are subject to 5% UAE VAT. The VAT is calculated on the subtotal outbound cost (picking + packing + delivery + closing) and added to your deduction at payout. Factor this into your product pricing calculations.