How to Calculate Your Real Profit on Noon Saudi Arabia (Fees, VAT, FBN)

Many new Noon sellers look at the selling price and the supplier price and think the difference is their profit. It is not. Between the two sit VAT, Noon’s fees, the VAT on those fees, fulfilment and shipping. Here is how to work out the real number before you list a product.

1. Take the VAT out of your price

Prices on Noon Saudi Arabia are shown to customers including 15% VAT. If you are VAT-registered, that part belongs to the government. The VAT inside a price is price × 15 ÷ 115. On a 230 SAR price, that is 30 SAR, so your sale is worth 200 SAR before costs.

2. Subtract the referral fee

Noon charges a referral fee (commission) on each sale. It is a percentage that depends on the category, and it can differ between accounts and change over time, so always use the rate card in your own Noon seller account rather than a number from a blog post.

3. Subtract fulfilment

• Fulfilled by Noon (FBN): Noon stores, packs and ships the order. You pay a fulfilment fee per unit that depends on size and weight, plus storage for stock that sits in the warehouse.
• Fulfilled by Partner (FBP): you ship the order yourself, so you pay your own packing and delivery cost, and Noon’s FBP fees apply.

4. Add VAT on Noon’s fees

Noon’s rate card fees are shown without VAT, and 15% VAT is added on the fee invoice. A 28 SAR fee is really 32.20 SAR. If you are VAT-registered you may be able to reclaim it; if not, it is a real cost.

5. Subtract the product and getting it to Saudi Arabia

Product cost, shipping from the supplier, customs and import VAT if you import stock, labels and packaging, and the cost of sending stock to the FBN warehouse.

6. Leave room for ads and returns

Sponsored products help a new listing get its first sales. Add a small allowance for ads and for returned or damaged items, then decide whether the margin is still worth it. Many sellers aim for at least 20 to 30% after everything.

Worked example (illustrative numbers)

Selling price 230 SAR. VAT inside it: 30 SAR, leaving 200 SAR. Suppose the referral fee is 28 SAR and fulfilment is 14 SAR, so 42 SAR of fees plus 6.30 SAR VAT on them. Product and shipping to the warehouse: 80 SAR. Ads allowance: 15 SAR. Profit: 200 − 42 − 6.30 − 80 − 15 = 56.70 SAR, about 28% of the 200 SAR net sale. These fee numbers are only an example; use your own rate card.

Do it faster

The free Noon profit calculator does this math for FBN in English and Arabic. To find products worth calculating, search a niche on Noon Saudi Arabia: Product Scout shows what is selling, the matched supplier on AliExpress or Temu and an estimated profit in SAR. All figures are estimates.