Unveil the concept on how noon releases the payments

Introduction

Have you ever wondered how noon releases payments to the seller? If you are already a seller and selling your products at noon. You might be confused about this or If you are a new seller, then you must be curious to know this.

There are some important things that you would need to understand. Let’s dive in.

Important things

There are few important things that you need to know.

• Order date
• Shipping date
• Delivered date
• Statement date

What is the statement?

Alright, now we know the term and all the terms are straightforward and self explanatory. But, you must be thinking about the statement.

The statement provides a summary of all sales, returns, and other deductions made in a specific week. It also includes a breakdown of the seller’s fees and the net proceeds that they will receive.

The Weekly Statement is typically generated by noon every Wednesday or at the end of the month. The payment against the generated statement is released to the seller after 7 days i.e., on Thursday.

Real picture

Let’s understand about the main concept with few examples:

Example 1

Let’s take an example where the dates are mentioned as below:

• Order received on 01-Oct-2023 Sunday
• Order shipped on 02-Oct-2023 Monday
• Ordered delivered to the customer on 03-Oct-2023 Tuesday
• Statement generated on 04-Oct-2023 Wednesday
• Payment will be released on 12-Oct-2023 Thursday

In this scenario, noon will generate the statement on Wednesday, which will show the amount to be paid. Please note, everything completed before statement generation.

Example 2

Let’s take an another example:

• Order received on 01-Oct-2023 Sunday
• Order shipped on 02-Oct-2023 Monday
• Statement generated on 04-Oct-2023 Wednesday (Let’s assume, order been delivered yet)
• Ordered delivered to the customer on 05-Oct-2023 Thursday
• Statement generated on 11-Oct-2023 Wednesday
• Payment will be released on 19-Oct-2023 Thursday

In this scenario, noon will generate two statements. One statement will be generated on 04-Oct-2023 where the amount will be in -ve, since noon charges their fees in advance. Another statement will be generated on 11-Oct-2023 post order delivery where amount will be in +ve showing amount will be paid to the seller.

Please note, the payment released on 19-Oct-2023 will be after adjusting the amount mentioned in both the statements.

Example 3

Consider everything same from the Example 2 but adding that the item is returned. Hence in this scenario, a third statement will be generated adjusting the amount. Please note, the payment will be released(if any) after adjusting all this amount shown in statements.

Unfortunately, there is no limit of generating statements against any sold items. Sometimes it is generated after 2-3 months or may be more than that.

Payable amount

Noon has a threshold to release the payment.

1. Total payable amount should be more than AED/SAR/EGP 50 else it will be on hold until it reaches more than AED/SAR/EGP 50.
2. Payment will be released once a month in the 2nd week, if the payable amount is more than AED/SAR 50 and less than AED/SAR 1000.
3. Payment will be released every week on Thursday if the amount is more than AED/SAR 1000 or EGP 50(In egypt payment is released every Tuesday).
4. Note that bank can have their 1-2 days of processing time to settle the payments.

Conclusion

It can be tricky to understand the structure of statements and payment. But, you must need to know that the financing is something which might be complicated in some scenarios.

Noon, usually generates multiple statements for one sold item. Hence you would need to make your financing structure according to the noon statement.

You can also book a free consultation with C2L if you are struggling with finaces. C2L offers a plethora of services that suites your business to grow on online platform.