- Profit = Selling Price - Product Cost - Shipping - FBN Fee - Commission
- Reverse formula: Price = (Cost + Shipping + FBN Fee) ÷ (1 - Commission% - Target Margin%)
- Commission is charged on selling price, ranging from 5% to 27% by category
- FBN fees depend on size tier and weight; ASP ≥ 25 SAR gets lower rates
- Shipping cost per unit: Total freight ÷ Total units (air ~20-35 CNY/kg, sea ~8-15 CNY/kg)
- JisuSell's pricing calculator computes profit and suggested price automatically
Core Profit Formula
The profit formula for Noon sellers:
Profit = Selling Price - Product Cost - Shipping Cost - FBN Fee - Platform Commission
Where: Platform Commission = Selling Price × Commission Rate
To reverse-calculate your target selling price:
Suggested Price = (Product Cost + Shipping + FBN Fee) ÷ (1 - Commission Rate - Target Margin)
Worked Example
Example: A standard parcel (0.5-1kg) home product selling in KSA, 15% commission rate:
| Item | Amount (SAR) | Notes |
|---|---|---|
| Product Cost | 16.00 | Sourcing cost 30 CNY, exchange rate ~0.53 |
| Shipping Cost | 6.00 | Air freight allocated per unit, ~11 CNY |
| FBN Fulfillment Fee | 9.60 | Standard parcel 0.5-1kg tier |
| Platform Commission (15%) | 14.82 | 98.80 × 15% = 14.82 |
| Selling Price | 98.80 | Final listing price |
| Profit | 52.38 | 98.80 - 16.00 - 6.00 - 9.60 - 14.82 |
| Profit Margin | 53% | 52.38 ÷ 98.80 |
Cost Component Breakdown
1. Product Cost
Product cost = sourcing price + packaging materials. Typically sourced from factories or wholesale platforms, including inner packaging, carton allocation, and labeling. Allow 3%-5% buffer for exchange rate fluctuations.
2. Shipping Cost (First Mile)
First-mile shipping is the international logistics cost from your warehouse to the Noon FBN warehouse, allocated per unit:
| Shipping Method | Transit Time | Reference Price (CNY/kg) | Best For |
|---|---|---|---|
| Air Freight | 5-8 days | 20-35 | Light items, high-value, urgent restocking |
| Sea Freight (FCL) | 20-30 days | 8-15 | Large volumes, low-value, advance planning |
| Sea Freight (LCL) | 25-35 days | 10-18 | Medium volumes, not enough for FCL |
3. FBN Fulfillment Fee
FBN fees are charged by Noon based on product size tier and weight. See the Noon FBN Shipping Fee Lookup for detailed rates. Key points:
- Products with ASP (Average Selling Price) ≥ 25 SAR get lower fulfillment fees
- Size tiers range from Small Envelope to Bulky with significant fee differences
- Oversized and heavy items incur substantially higher fees
4. Platform Commission
Noon charges commission as a percentage of selling price, varying by category (5%-27%). See the Noon Commission Rates by Category for full details.
Reverse Pricing Example
For a digital accessory with the following costs, targeting 35% margin at 13% commission:
| Item | Amount (SAR) |
|---|---|
| Product Cost | 12.00 |
| Shipping Cost | 4.50 |
| FBN Fee | 6.80 |
| Total Fixed Cost | 23.30 |
| Suggested Price | 44.81 |
Calculation: Suggested Price = 23.30 ÷ (1 - 0.13 - 0.35) = 23.30 ÷ 0.52 = 44.81 SAR
Verification: Commission = 44.81 × 13% = 5.83, Profit = 44.81 - 23.30 - 5.83 = 15.68, Margin = 15.68 ÷ 44.81 = 35%.
Margin Comparison Table
With fixed costs of 31.60 SAR (Product 16 + Shipping 6 + FBN 9.60) and 15% commission:
| Target Margin | Suggested Price (SAR) | Commission (SAR) | Profit (SAR) |
|---|---|---|---|
| 20% | 48.62 | 7.29 | 9.73 |
| 30% | 57.45 | 8.62 | 17.23 |
| 40% | 70.22 | 10.53 | 28.09 |
| 50% | 90.29 | 13.54 | 45.15 |
| 53% | 98.75 | 14.81 | 52.34 |
Use JisuSell's Pricing Calculator to instantly compute profit and suggested price. Just enter your product cost, shipping, dimensions, and category — it auto-matches the latest commission rates and FBN fees for both KSA and UAE. Open Pricing Calculator →
FAQ
What is the profit formula for Noon sellers?
Profit = Selling Price - Product Cost - Shipping Cost - FBN Fulfillment Fee - Platform Commission (Selling Price × Commission Rate). All amounts should be in the same currency (SAR or AED).
How do I calculate the suggested selling price on Noon?
Suggested Price = (Product Cost + Shipping + FBN Fee) ÷ (1 - Commission Rate - Target Margin). For example, if total fixed cost is 31.60 SAR, commission is 15%, and target margin is 30%, then Price = 31.60 ÷ 0.55 = 57.45 SAR.
Is Noon commission based on selling price or profit?
Noon commission is calculated as a percentage of the selling price, not the profit. Commission rates vary by category from 5% to 27%.
How do I allocate shipping cost per unit?
Total freight ÷ Total units = Per-unit shipping cost. For weight-based: Unit weight × Price per kg. Air freight is typically 20-35 CNY/kg, sea freight 8-15 CNY/kg, then convert to SAR/AED.
What is a good profit margin on Noon?
A healthy margin is typically 30%-50%. Below 20% leaves little buffer for returns and promotions. High-commission categories (like apparel at 27%) need higher gross margins to ensure healthy net profit.
Is there a tool to automatically calculate Noon profit?
JisuSell offers a pricing calculator that computes profit and suggested selling price automatically. It supports both KSA and UAE markets with up-to-date commission rates and FBN fees. Open Pricing Calculator
Need to quickly calculate Noon profit and pricing?
JisuSell's pricing calculator auto-matches commission rates and FBN fees to compute profit and suggested price instantly.