I often receive the question: Is dropshipping halal or haram?
Dropshipping involves selling an item that you don't have, then placing an order with a supplier to ship the sold item directly to the buyer.
For example, let's say I have a dropshipping website that sells watches. I don’t currently own any watches, nor do I have possession of any. When I receive an order for a watch on my website, I place an order for this watch from its Indonesian manufacturer who then ships the watch directly to the customer that ordered it.
Dropshipping Halal or Haram?
Some have deemed dropshipping haram because of the following authenticated hadith of Hakam bin Hizam, may Allah be pleased with him, wherein the prophet peace be upon him tells Hakam:
“Do not sell what is not with you”
Tirmidhi, no: 1232
Since dropshipping involves selling something that isn't with you, this hadith has been deemed by some to prohibit it.
However, we know the prophet's prohibition on selling that which is not with you is not an absolute prohibition.
We know this is because of the following, also authenticated, hadith:
“The Prophet came to Medina and the people used to pay in advance the price of dates to be delivered within two or three years. He said (to them), ‘Whoever pays in advance the price of a thing to be delivered later should pay it for a specified measure at specified weight for a specified period.” .
Bukhari no: 2239
Selling dates two or three years in advance of delivery means at the time of sale these dates didn’t even exist yet, let alone being in the seller's possession.
This type of advance sale in Islamic finance is known as a Salam contract.
Yet the prophet peace be upon him did not tell the people of Medina not to sell that which was not with them as he did to Hakim bin Hizam, may Allah be pleased with him.
Therefore, it must be true that there are instances where selling that which is not with you is prohibited and others where it is not.
When Is It Permissible to Sell What Is Not With Us?
What seems evident to me and many other commentators on this topic is that the prophet peace be upon him forbade selling what is not with the seller when such a sale is likely to bring about conflict between buyer and seller.
In the case of Hakam bin Hizam, may Allah be pleased with him, it's possible that he sells something and then goes to the market to find what he sold and either can’t find the thing he sold, finds the thing he sold but it doesn’t meet the buyer’s expectations or finds what he sold for a price that is greater than what he sold it for.
All of these instances may bring about conflict between the buyer and seller.
On the other hand, in the case of selling dates two or three years in advance, the supplier of the dates had already been identified prior to the sale and the supplier was willing and likely to be able to deliver the dates by the delivery date and according to the specifications agreed to.
Therefore, in the case of dropshipping, when trying to ascertain whether it falls in the category of "don't sell what is not with you" or a Salam contract, we need to ask the following:
Has a supplier been identified who is willing and likely to be able to supply the item on the agreed terms prior to the sale?
If a willing and able supplier has been identified prior to completing the sale then you are likely in Salam contract territory where the restriction of having what you sell prior to the sale can be eased.
On the other hand, if you're selling something and only after you make the sale do you figure out who is going to supply the item then this falls into "don't sell what is not with you" territory.
Additional considerations for permissible dropshipping include:
- A proper description of the item being sold so that the buyer knows exactly what they purchased.
- The item itself is not haram (you already knew that).
- You are specifying the time period by which the item should be delivered to the customer.
- No dropshipping of ribawi items e.g. Gold or Silver.
- The retailer i.e. the party making the sale accepts responsibility for delivering the items according to their advertised specifications.
Summary
If you have a willing and able supplier identified prior to making a sale, then the restriction on having what you sell with you before you make a sale can be eased.
Therefore, dropshipping can be permissible under the aforementioned conditions.
...and Allah knows best.
Sub haan Allaah.
Keep reading the aHadith in that sequence from Bukhari and do not cherry pick them to fit your desires.
“Sahih al-Bukhari 2247, 2248
Narrated Abu Al-Bakhtari:
I asked Ibn `Umar about Salam (the fruits of) date-palms. He replied, "The Prophet (ﷺ) forbade the sale of dates till their benefit becomes evident and fit for eating and also the sale of silver (for gold) on credit." I asked Ibn `Abbas about Salam for dates and he replied, "The Prophet (ﷺ) forbade the sale of dates till they were fit for eating and could be estimated."”
You stated what was correct in the beginning.
That it is impermissible to sell an object that you do not physically possess.
So what has now possessed you, other than the shaytan or your own desires, that you now think this is a permissible form of business?
Refrain from speaking in matters where-in you clearly lack knowledge and understanding.
Refer these questions back to the upright people of sound Islamic knowledge, and quit giving out verdicts at the whims of your own neffs.
May Allaah guide you and rectify your affairs.
Wa salaam,
Dawood
Lets all learn to respect each each other views. Islam means peace.
What should i do , should i agree with what you have said?
I think that you need to know more about dropshipping that has nothing to do with what you are talking.
If you do dropshipping well and honest:
1-You create a onlinestore and make it look really professional so that customers can trust you.
2-You pick up the products.For example:Fitness products.You put them on the store with the right description so the customer knows what he will receive and you also can buy the products you will sell so you know the quality if it is bad then don´t sell it and try to find a new supplier so you see you have to invest money on your pocket.
3-Lets say a customer buy one product of you,you are not receiving the money immediately you have to contact the merchant and tell him to send the product so you have to buy it from aliexpress for example and shipp it to the customer adress you can also pay the shipping for the customer so he can receive it in 1 or 2 weeks when you do that you will receive a percentage not all the money for example you bought the product for 10$ and sell it for 20$ you woll receive I think 15 dollars.
4-If the customer becomes his product and like it then is everything fine you are not cheating anyone and if the customer did not received it you can refund him or if he received it wrong or there are some issue he can resend it back with a free return label.
All people that says is haram without knwoing how actually a great dropsshipping has to be done are for me only jealous of people that try to huslte. There are a lot of people that do dropshipping wrong with cheating customers because they thing is easy money nooo is not is really hard.
Like I said I hope you understand what I meant because Dropshipping is not bad if people do out correctly and when people do it bad stop saying that DP is haram only because of bad people that they cheat.
So is hip-hop music is haram