The logistics infrastructure of countries in the Middle East varies greatly, which has led to a major problem in local logistics and distribution. But the Noon platform has also made comprehensive considerations for sellers in terms of logistics.
In terms of logistics, Mohamed Alabbar (founder of Noon) acquired 16.45% of the shares of Aramex, the largest logistics company in the Middle East, in 2016. Noonexpress has its own logistics team in the UAE and Saudi Arabia to do the “last mile” delivery, and can deliver on the same day at the fastest. Noon currently has its own logistics warehouses in the UAE, Riyadh, and Jeddah, and more warehouses are being built.
Currently, all online products can be delivered to the Noon Shenzhen warehouse within 3 days after the order is generated; when the seller has been on the sales platform for 1~2 months, he can choose to send the hot-selling products to the FBN overseas warehouse in the UAE and Saudi Arabia.
In addition, the sellers who have settled in have two delivery methods to choose from: SB2B and FBN:
SB2B (self-delivery) mode.
This mode has no risk of stockpiling, but the delivery cycle is long. After the buyer places an order, the seller confirms the delivery. It is estimated that it will take 6 to 10 days from the buyer’s order to the receipt.
FBN mode.
This mode has a short delivery cycle and priority ranking, but there is a certain risk of stockpiling, similar to Amazon’s FBA mode, which takes 1-3 days from the buyer’s order to the receipt.
Noon encourages the FBN model because it has more advantages:
1. Using the FBN model is the only way for sellers to apply for promotions, and there is more traffic tilt.
2. Shorter delivery time and faster service.
3. Conversion rate can reach 60%.
4. Commission can be up to 30% off, no operation fee, storage fee and shipping fee.
5. It is conducive to developing the Saudi market and reaching more users.
6. Unique labels, buyers can easily filter products with fast delivery.
7. Multiple warehouses in the UAE, Riyadh and Jeddah are supported.