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Noon FBN Fee Hike Hits Sellers Hard

2026-06

Last month, a kettle seller called me. He forwarded Noon's email—FBN storage fees jumped 25-35% from June 1. Standard size went from AED 25 to AED 33 per cubic meter; oversize jumped 35%. His monthly storage cost shot from AED 22,000 to AED 28,000. Honestly, Noon's move isn't surprising. They narrowed losses in 2025 but need higher margins before the dual IPO. Storage fees are just the first domino—delivery and commissions may follow. My take: don't rush to switch to self-fulfillment. Have you calculated last-mile costs? In Saudi, self-delivery runs AED 15-18 per parcel, plus packing labor. That's often no cheaper than FBN, especially for bulky items. For example, a 54L storage bin costs AED 7.2 per unit via FBN; self-fulfillment hits AED 12. So what can you do? First, clear inventory older than 180 days—Noon's long-term storage fees sting. Second, split stock: move slow-movers to UAE warehouses (15% lower fees). Third, negotiate volume discounts with Noon—if you ship 5,000+ units monthly, you have leverage. Another trick: bundle hot sellers. The kettle seller added a cup to each kettle, boosting basket size and cutting unit storage cost from 8% to 5.5%. Here's my question: how many of your SKUs actually make money? Cut the losers before Noon does it for you.