Is Dropshipping Permissible?

Answered by Shaykh Abdul-Rahim Reasat

Question

I would like to get clarity on the permissibility of drop shipping business models. I plan to primarily sell/market items on marketplaces like eBay, Amazon, or FB using retail suppliers like Walmart, Home Depot, Target, etc., or use wholesale suppliers as well. I have read about salam sales as a way to make this model compliant with Sharia but need some more assurance. And would I need to mention in my listings that the items are being fulfilled by third-party suppliers?

Answer

I pray you are well.

Yes, this form of drop shipping would be permissible, as it fulfills the conditions generally laid out by the jurists for the salam sale. Do ensure that all the product descriptions and delivery dates are accurate.

Also, if your supplier cannot provide an item it is necessary for you to produce it and provide it to the buyer by the stipulated date. So, it’s best to ensure that your suppliers have sufficient stock before making a sale. [Usmani, Fiqh al Buyu’]

I suggest you study the laws of sales, salam, and riba in detail with a scholar. It will help you avoid any potential pitfalls. As the Prophet (Allah bless him and give him peace) said, “Indeed, the halal is clear, and the haram is clear. Between them are confusing matters that most do not know.“ [Bukhari]

Getting clarity from those who do know will give you much safety in your din.

May Allah grant you every success.

[Shaykh] Abdul-Rahim

Checked and Approved by Shaykh Faraz Rabbani 

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History he moved to Damascus in 2007 where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital and he was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.