Digital buyers are continuously on the rise. More and more businesses are turning to online platforms to increase visibility and reach more customers. In fact, within the UAE alone, the value of the UAE e-commerce market is expected to reach $9.2 billion in 2026, far surpassing years gone by.
Many factors contribute to the growth of the e-commerce market in the region, including more online shopping, rising social media usage, and continuous technological innovations. The convenience that comes with e-commerce and the availability of items not often sold at physical stores are also determining factors.
Online platforms like noon.com are at the forefront of the e-commerce market. This vast marketplace offers many opportunities for brands, whether big or small, to venture into the e-commerce domain within the UAE.
Dive into our detailed guide to embark on your journey of selling on noon.com and unlock the potential to reach millions of customers across the UAE.
How to Start Selling On Noon: The Complete Process
1. Register Your Business
Choose a Business Structure: You will need to choose a business structure that will most likely include a sole proprietorship, limited liability company (LLC), Free Zone company, or partnership.
Register Your Business: Name and register your business with the Department of Economic Development (DED) or the respective Free Zone authority where your business will be based.
2. Obtain Your E-Commerce Licence
Choose Between Free Zone or Mainland: Next, you will need to obtain an e-commerce licence. Your first decision involves selecting between setting up in a Free Zone or on the Mainland. If you need help choosing between setting up in a Free Zone or the Mainland, scroll down to see the benefits of each choice.
Submit Your Application: To submit your application, it will depend on whether you have chosen a Free Zone or a Mainland setup:
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- For Mainland Setup: You should apply through the local municipality or the Department of Economy and Tourism (DET) for the specific area where you intend to establish your business. The Mainland setup process involves selecting your business activities, submitting the necessary documents, and obtaining additional approvals for certain types of businesses.
- For Free Zone Setup: Direct your application to the Free Zone authority where you wish to locate your business. Free Zones typically offer a more streamlined setup process, with less bureaucracy and faster turnaround times. Many Free Zones are also tailored to specific industries, including e-commerce, providing infrastructure and services beneficial to online businesses.
3. Open a Corporate Bank Account
Open a Corporate Bank Account: To facilitate financial transactions for your business on Noon, you’ll need to open a corporate bank account registered in your business’s name. It’s crucial to choose a recognised bank that offers comprehensive online banking facilities to manage your transactions smoothly. This account will be used for all business-related financial activities, including receiving payments from Noon for your sales.
4. Sign Up for Noon
Sign Up: Visit the Noon Seller Lab website and click the “Sign Up” button.
Fill in Details: Fill in the required details about your business, including contact information and business description.
Upload Documents: When setting up your seller store, you need to upload the following documents: passport or Emirates ID, residence visa (if you’re a foreign business owner), trade licence (e-commerce licence) and VAT certificate. If you are selling Health and Beauty products, you need to submit a proof of purchase, a distribution authorisation letter, or a manufacturer permit or certificate.
Enter Your Bank Details: Your bank account details should include your business’s legal name, bank account number, IBAN and SWIFT codes, bank branch, and store currency. Note that indicating your store currency is important, as you cannot change this in the future.
Note: Importantly, merchants that are not VAT-registered should submit a declaration of VAT non-enrolment. Be sure to fill out the appropriate form. The documents should also be affixed with a seal and signed by the authorised owner or signatory of the business.
5. Choose a Selling Model
Before listing your products, it’s important to decide on the selling model that best suits your business strategy on Noon. Noon offers different selling models to cater to the varied needs of sellers:
Fulfilled by Noon (FBN): Under this model, Noon takes care of storage, packing, delivery, and customer service. This is an excellent option for sellers looking for a hassle-free solution to manage logistics and focus more on their products and marketing.
Fulfilled By Partner (FBP): In this model, as a seller, you’re responsible for storing your products, managing inventory, packing orders, and dropping them off at a noon dropoff location. This option gives you more control over the logistics and is often preferred by sellers who have the capability to manage these processes efficiently.
6. List Your Products
Access the Seller Dashboard: Once your account is set up and approved, log in to your seller dashboard. This is where you can manage your listings, orders, and account settings.
Add Products: Look for an option to “Add Products” or “Create Listings.”
Enter Product Details: For each product, you’ll need to enter details such as the product name, description, category, price, and stock quantity. Be descriptive and clear to attract customers and improve searchability.
Upload Images: Upload high-quality images for your product. Ensure the images are clear and well-lit and showcase the product from multiple angles.
7. Manage Orders and Payments
Managing Orders and Payments: Noon’s seller platform allows you to manage orders, process returns, and track payments. Familiarise yourself with their dashboard for efficient operations. Payments for your sales (minus Noon’s commission) are directly deposited into your bank account.
Choosing Between a Free Zone or Mainland Setup
Choosing the right setup for your online business in the UAE, especially if you’re planning to sell on platforms like Noon, involves careful consideration of both Free Zone and Mainland options. Each setup offers distinct advantages that can align differently based on your business model and objectives. Here’s how each option can cater specifically to an e-commerce business aiming to operate on Noon:
Mainland Setup Benefits for Noon Sellers
1. Direct Access to the Local Market: A Mainland setup is ideal for online businesses targeting local consumers directly on platforms like Noon. It allows you to trade within the UAE without the need for a local distributor or agent, making it simpler to manage logistics and customer relations directly.
2. Broader Operational Freedom: With a Mainland licence, you can operate both an online store on Noon and a physical retail presence if desired. This versatility is beneficial for brands looking to offer a multi-channel shopping experience.
3. No Restrictions on Business Activities: Mainland setups offer a wider range of permissible business activities, which can be advantageous if you plan to expand your product offerings or venture into different categories that may require additional licences.
4. Government and Corporate Opportunities: If your online business serves not only consumers but also businesses and government entities, a Mainland company can legally engage in these B2B and B2G transactions, which could open up additional revenue streams.
Free Zone Setup Benefits for Noon Sellers
1. Cost-Effective and Efficient Start-Up: Free Zones provide a streamlined and cost-effective process for setting up your e-commerce business, with lower setup costs, quicker processing times, and minimal bureaucracy. This can be particularly appealing for new entrepreneurs who want to get to market quickly.
2. Full Ownership and Profit Repatriation: For foreign nationals, Free Zones offer the benefit of 100% ownership and the ability to repatriate all profits. This is crucial for international sellers who choose Noon to access the UAE market without local partnership requirements.
3. Designed for E-Commerce: Many Free Zones are specifically designed to support e-commerce businesses with tailored logistics and warehousing solutions essential for managing an efficient online store.
4. Specialized E-commerce Licences: Free Zones often offer specialized e-commerce licences that cover various online business activities, ensuring that your operations on Noon are fully compliant with local laws.
Things to Consider
1. Choosing the Right Free Zone: If opting for a Free Zone, select one that offers robust support for e-commerce activities, such as dedicated facilities for storage and fulfilment, which can be crucial for managing an efficient supply chain for your Noon store.
2. Understanding Trade Limitations: While Free Zone entities face limitations in trading directly with the UAE market, many Free Zones offer services to overcome this, such as local distributors or logistics solutions that allow you to sell on platforms like Noon without issues.
3. Consider Future Growth: Think about your long-term goals. If you plan to expand beyond online sales or explore retail opportunities, ensure your chosen setup allows for this growth without excessive additional costs or changes in operational structure.
When setting up an online business on Noon, the decision between Free Zone and Mainland will significantly influence your operational dynamics, tax implications, and growth potential. Each has its strengths, and the choice should align with your specific business needs, operational goals, and target customer base.
Contact us for a free consultation with our Business Setup Consultants if you need assistance with your decisions.
Noon’s Fees
What Fees Does Noon Charge?
Selling on Noon involves certain fees that differ depending on which selling model you have chosen. See the two different fee structures below:
Fulfilled by Noon (FBN) Fees in UAE
If you opt for Noon to handle your storage, packing, logistics and customer service through the FBN model, the following fees will apply:
- The Outbound Fee: The outbound fee ranges from 7-71 AED per unit, depending on the weight of the product.
- The Storage Fee: You will also be charged for your storage, which is calculated at 1.5 AED per cubic foot per month. Please note that if an item is left in storage for longer than 365 days, you will be charged 2.5 AED per cubic foot per month.
- The Referral Fee: You will be charged a referral fee, which is calculated as a percentage based on the product type. Typically, the referral fees will cost between 5-25%. However, they can be as low as 0% and as high as 40%.
The exact cost structure for Fulfilment By Noon (FBN) services in the UAE can be found here.
Fulfilled by Partner (FBP) Fees in UAE
If you opt to store and package your own products but allow Noon to handle the shipping logistics, the following fees will apply:
- Direct Ship Fee: Each shipment has a pickup and dropoff fee determined by weight. The pickup fee ranges from 14-40 AED, and the dropoff fee ranges from 12-42 AED.
- Shipping Fee Compensation: You will be compensated for the shipping charges collected from customers, with a maximum reimbursement of 10 AED per order once delivery has been successfully completed. The shipping charges are structured according to a tier system, which varies depending on the order’s total value.
- Referral Fees: You will be charged a referral fee, which is calculated as a percentage based on the product type. The referral fees are almost identical to the Fulfilled by Noon Fees. Generally, referral fees range from 5% to 25%, but they may be as minimal as 0% or as substantial as 40%.
The exact cost structure for Fulfilment By Partner (FBP) services in the UAE can be found here.
The Best Items to Sell on Noon in the UAE
Choosing the best items to sell on Noon in the UAE requires a careful analysis of market demand, profitability, and referral rates charged by Noon. The products below balance high demand and lower referral fees:
Electronics
Mobiles & Tablets: Electronics typically have high demand and mobiles and tablets with a referral fee of only 4% to 6% offer an attractive margin, especially for items priced over 750 AED.
Personal Computers (Laptops and Desktops): With referral fees ranging from 5.5% to 6%, these are also profitable options, given their higher average sale prices and consistent consumer demand.
Gold Bars & Coins
Gold Bars and Coins: Gold bars and coins attract a minimal referral fee of just 5%. Considering their high value and low fee, they can offer substantial profit margins.
Jewellery: Fine jewellery with a sale price of more than 1000 AED only attracts a fee of 5%.
Cameras (Camera, Lens, Scopes)
With referral fees ranging from 6% to 15%, selling high-value items like professional cameras and lenses can be profitable, particularly for those priced at the lower end of the referral fee spectrum.
Televisions
At a referral fee of 5% to 8%, TVs can be a lucrative product category, especially for higher-end models that command premium prices.
Software
With a flat referral fee of 13%, software products can be an excellent niche, particularly specialized software that caters to professional or educational needs.
Categories to Approach with Caution Due to High Referral Fees
Fashion (Apparel and Footwear): While fashion items can be highly popular, they carry a steep referral fee of 27%. The high competition in this category may also have thin profit margins, making it less attractive unless you have exclusive products or strong brand recognition.
Groceries (Food & Beverages, Cleaning & Hygiene): These categories have the highest referral fees at 40%, which can significantly impact profitability unless managed with very tight control on cost and inventory.
How to Price Your Products on Noon
Given the above fee structure, carefully planning your pricing strategy on Noon is crucial. Consider the commission rates for your product category and your product costs, and don’t forget to factor in any costs associated with optional services like FBN. Set your prices to cover these expenses while remaining competitive in the marketplace.
Incorporate All Costs
Product Cost: Start with the base cost of your product, including procurement or manufacturing costs.
Operational Costs: Factor in costs such as storage, shipping, and handling, especially if you opt for Fulfilled by Noon (FBN), which includes additional fees for storage and outbound logistics.
Overhead Expenses: Consider other overheads such as marketing, labour, and any other administrative expenses that affect your overall cost structure.
Analyse Your Competitors
Research: Research the pricing of similar products on Noon. Understanding how your competitors price their products will help you identify a competitive price point that attracts buyers without sacrificing your margins.
Noon Price Intelligence: Utilise this tool to understand competitive pricing across different platforms and set competitive prices for your products accordingly.
Dynamic Pricing
Noon’s Price Engine: Utilise Noon’s Price Engine to adjust prices in real-time based on market conditions, demand fluctuations, and inventory levels. This flexibility can help maximize sales and profits, particularly during promotional periods or when you need to clear stock.
Tips and Tricks to Boost Your Sales
Here are some tips and tricks to help you succeed in the competitive e-commerce landscape:
1. Optimise Product Listings
SEO for Product Titles and Descriptions: Craft your titles and descriptions with SEO (search engine optimisation) in mind. Use relevant keywords that potential customers are likely to use when searching for your products. This optimisation not only enhances visibility but also improves click-through rates.
High-Quality Images: Use clear, high-resolution images that showcase your products effectively. Include multiple angles and context shots where the product is in use to provide customers with a comprehensive view.
2. Engage with Noon’s Seller Support
Seller Lab Noon: Participate in the free onboarding training provided by Noon. These sessions are designed to help new sellers familiarise themselves with the marketplace’s tools and selling processes.
Continuous Learning: Make use of the monthly training sessions offered through Noon Seller Lab. Regular updates and deep dives into new features or strategies can keep you ahead of the curve.
3. Utilise Promotions and Discounts
Limited-Time Offers: Drive sales and attract more traffic to your listings by running limited-time promotions or discounts. This creates a sense of urgency and can encourage impulse purchases.
Bundle Deals: Consider offering bundled products at a discounted rate to increase the average order value. This will boost sales and move inventory more quickly.
4. Focus on Customer Service
Quick Response: If you have opted to do Fulfillment By Partner and are handling your own customer service, ensure you respond quickly to customer inquiries and issues. Excellent customer service leads to higher satisfaction rates, which in turn encourage repeat business and positive reviews.
Ask for Feedback: Encourage customers to leave feedback after their purchase. Positive reviews can significantly enhance your credibility and attract more customers.
5. Monitor Performance Analytics
Regularly review the analytics provided by Noon to understand your sales patterns, customer preferences, and product performance. This data is invaluable for making informed decisions that can refine your strategy and optimise your sales.
Start Your E-commerce Journey
There’s no better time than now to reap the benefits of starting your own e-commerce venture. If you need assistance in setting up your e-commerce business in the UAE, we’re here to help. Get in touch with our team, and we’d be happy to guide you throughout your e-commerce journey.
FAQ’s
Should I Use FBN or Seller Fulfilled?
Evaluate your business’s capacity for logistics, your product types, and your preference for control over customer service and shipping. FBN might incur additional fees but offers the convenience of logistics handled by Noon. On the other hand, Seller Fulfilled might reduce certain costs but requires you to manage logistics.
What Do I Need Before I Start Listing Products on Noon?
To start listing products on Noon, you must become a registered seller and gain access to the Seller Lab. Next, you will need to upload images and descriptions of the product you are listing.
Can I Sell Internationally with Noon?
Currently, Noon primarily operates in the Middle East, specifically in the UAE, Saudi Arabia, and Egypt. While international selling isn’t broadly supported, you can sell across these regions if your business operations comply with local laws and regulations.
How Do I Manage Returns and Refunds on Noon?
Noon has a return policy that sellers must adhere to. If customers are unsatisfied with products, they can return them within a specified period, typically 15 days. The process varies depending on whether you use Noon’s Fulfilment service (Fulfilled by Noon) or manage the logistics yourself (Fulfilled by Partner):
Fulfilled by Noon: When using Fulfilled by Noon, Noon handles the majority of the logistics associated with returns. Customers return the items directly to Noon’s warehouse, where they are inspected. If a return is approved, Noon processes the refund on your behalf. Your responsibility is mainly to ensure that your account funds cover the refunds.
Fulfilled by Partner: If you choose Fulfilled by Partner, you are responsible for handling the logistics of the return directly. Customers will send the returned items to the address you specify. Upon receiving and inspecting the returns, you must process the refunds directly. It’s crucial to stay compliant with Noon’s return policy timelines and standards to ensure customer satisfaction.
