How to calculate the FBN Outbound Fee and the Inventory Removal Fee in KSA

How to calculate the FBN Outbound Fee and the Inventory Removal Fee in KSA

Managing your FBN fees effectively is essential to optimize your costs and streamline your operations. This guide will provide you with a detailed breakdown of the FBN Outbound Fee and the Inventory Removal Fee.

1. The FBN Outbound Fee

The FBN Outbound Fee is charged per item shipped to customers and is determined by a combination of the product's dimensions and shipping weight. It is important to note that this fee:

  • Applies at the time of shipping to the customer.

  • Is non-refundable if the order is returned.

Follow these steps to determine the FBN Outbound Fee for each of your items:

Step 1: Determine the Packaging Classification

Identify the classification of the packaging (e.g., small, standard, large, oversize) that will hold your product using the Classification Table based on your product’s dimensions.

Classification

Longest side (cm)

Median (cm)

Shortest (cm)

Packaging material Weight (g)

Max Shipping Weight (Kg)*

Small envelope

<=20

<=15

<=1

20

0.1

Standard envelope

<=33

<=23

<=2.5

40

0.5

Large envelope

<=33

<=23

<=5

40

1

Standard Parcel

<=45

<=34

<=26

100

12

Oversize

<=130

<=34

<=26

240

30

Extra Oversize**

<=130

<=130

<=130

240

30

Bulky

Everything else

400

 

** excludes glass items like mirrors, tabletops which would get classified in Bulky

Step 2: Calculate the Shipping Weight

Use the following formula to calculate the shipping weight of your product, then round it to the nearest 50g:
Shipping Weight = Product Physical Weight + Packaging Weight of a particular classification

Step 3: Verify Shipping Weight Against Classification

Ensure the calculated shipping weight does not exceed the maximum shipping weight for the product’s classification. If it does, the next higher classification tier will apply.

Step 4: Determine the FBN Outbound Fee

Refer to the FBN Outbound Fee Table to find the fee applicable to your product’s packaging classification and weight slab.

FBN Outbound Fee

Weight Slab

SA

Cost per unit(SAR)

Small envelope

One rate

5.0

Standard envelope

<=0.1Kg

5.5

<=0.25 Kg

5.5

<=0.50 Kg

5.5

Large envelope

One rate

5.5

Standard parcel

<=0.25 Kg

5.5

>0.25 Kg & <=0.50 Kg

6.0

>0.50 Kg & <=1.0 Kg

 6.5

>1.0 Kg & <=1.5 Kg

 7.0

>1.5 Kg & <=2.0 Kg

 8.5

>2.0 Kg & <=3.0Kg

 9.5

Each additional 1Kg till 12 Kg

 Additional 1 SAR per kg

Oversize parcel

<=1.0 Kg

 8.5

>1.0 Kg & <=2.0 Kg

 9.5

>2.0 Kg & <=3.0 Kg

 10.5

>3.0 Kg & <=4.0 Kg

 11.5

>4.0 Kg & <=5.0 Kg

 12.5

Each additional 1Kg till 10 Kg

Additional 1 SAR per kg 

>10 Kg & <=15 Kg

22.0 

>15 Kg & <=20 Kg

26.5

>20 Kg & <=25 Kg

 31.5

>25 Kg & <=30 Kg

 36.0

 

Extra Oversize

<=4Kg

 13.5

Each additional 1Kg till 10 Kg

Additional 1 SAR per kg

>10 Kg & <=15 Kg

 23.0

>15 Kg & <=20 Kg

 27.5

>20 Kg & <=25 Kg

  32.5

>25 Kg & <=30 Kg

 37.0

Bulky

 

<=20 Kg

 31.0

>20 Kg & <=21 Kg

 33.0

>21 Kg & <=22 Kg

 35.0

>22 Kg & <=23 Kg

 37.0

>23 Kg & <=24 Kg

 39.0

Each additional 1Kg till 30 Kg

Additional 2 SAR per kg

>30 Kg & <=35 Kg

 59.0

>35Kg & <=40 Kg

 68.0

40> kg

Additional 10 SAR per 5 kg


FBN Outbound Fee Calculation Example

  • Dimensions: 17.4 x 8.81 x 2.8 cm

  • Unit Weight: 0.32 kg

  • Classification: Large Envelope (based on dimensions that has 0.04 kg of packaging weight).

  • Shipping Weight: 0.32 kg (unit weight) + 0.04 kg (packaging weight) = 0.36 kg (~0.4 kg).

Since the shipping weight is within the 1 kg limit for large envelopes, the FBN Outbound Fee is SAR 5.5 per unit.

2. Inventory Removal Fee

The Inventory Removal Fee applies to items you request to be returned from noon’s fulfillment center. This fee is calculated based on the higher of the product’s volumetric weight or physical weight.

Delivery Request

Follow these steps to calculate the Inventory Removal Fee for delivery requests:

  1. Calculate the Volumetric Weight
    Use the formula:
    Volumetric Weight (kg) = Length (cm) x Width (cm) x Height (cm) / 5000

  2. Compare with Physical Weight
    Choose the higher value between the volumetric weight and the physical weight.

  3. Calculate Fees
    Multiply the higher weight by the applicable delivery fee (same-city or cross-city) and add the handling fee.

Inventory Removal Fee Table

A fee that will apply to each unit that is shipped back to you at your request. The inventory removal fee is based on a combination of the dimensions and shipping weight of the product.

Inventory Removal 

Unit of measurement

SA

SAR

Minimum fee per Inventory removal request

 

15

Handling fee (per unit)

per unit

0.3

Same-city delivery fee

per KG*

1.0

Cross-city delivery fee

per KG*

2.0

 Inventory Removal Fee Calculation Example:


  • Dimensions: 25.2 x 119.9 x 46.6 cm

  • Physical Weight: 20.6 kg

  • Volumetric Weight: (25.2 x 119.9 x 46.6) / 5000 = 28.16 kg (higher than physical weight).

Fee Calculation:

  • Delivery Fee: Volumetric weight x the Handling Fee and the Same-city delivery Fee

            28.16 kg x 1 SAR (same-city) = 28.16 SAR

  • Handling Fee: 0.3 SAR

  • Total Inventory Removal Fee: 28.16 + 0.3 = 28.46 SAR

Collection Request

For collection requests, calculate the fee as follows:

  1. Calculate Volume in Cubic Feet (CBF)
    Use the formula:
    Cubic Feet (CBF) = Length (cm) x Width (cm) x Height (cm) / 28317

  2. Calculate Processing Fees
    Multiply the cubic feet value by the processing fee.

  3. Add Handling Fee
    Add the handling fee to the total.

Inventory Removal Fees Table (Collection)

FBN Inventory Removal

Unit of measurement

AE

AED

Minimum fee per Inventory removal request

 

15

Handling fee (per unit)

per unit

0.3

Processing fee

per Cubic feet*

1.0

Inventory Removal Fee Calculation Example:

Example: Collection Request Calculation
  • Dimensions: 25.2 x 119.9 x 46.6 cm
  • Cubic Feet (CBF): (25.2 x 119.9 x 46.6) / 28317 = 4.972 CBF

Fee Calculation:

  • Processing Fee: 4.972 CBF x 1 AED = 4.972 AED

  • Handling Fee: 0.3 AED

  • Total Inventory Removal Fee: 4.972 + 0.3 = 5.27 AED

Since this is lower than the minimum fee, the applicable fee is 15 AED.


 

That’s it!

 

Got more questions? 

Contact us at seller@noon.com

 


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