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Is it permissible to adopt dropshipping model of business.

Q:

I am interested in inshallah starting an online shop where I sell Islamic related items. I want to use the drop-shipping business model where once i get a sale I then buy the item from another online shop then ship it to the buyer. I heard that this method of selling merchandise is not permissible from sunni sources but I want to make sure about it with the shia school of thought. Thank you.

A:

Salamun Alaykum

Thank you for your query.

If it is really a product and there is no legal prohibition and there is no injustice against the customer, there is no problem. So the product has to be Halal.

There is nothing wrong with receiving the money as an advance payment and then preparing the material and delivering it to the customer in the form of a sale.

Incase if the customer makes you a representative(Wakil) to procure the goods for him, and deliver him the product, then you must deliver at the same price and not at a higher price and later you can take your fees according to the initial agreement and contract you make in the beginning. However, one cannot lie about the price.

To make it easier, what you can do is buy with the intention that you are buying for yourself and later sell it for the customer. Or you can buy the product first and later get the orders.

May Allah(swt) grant you success

Wassalam,
AAA team under the guidance of

Syed Haider