Dropshopping queries

#1

Salaam O Laikum

1 For clarity, I would be grateful if you could outline the T & C or business principles that you would advice should be included when setting up a drop shipping business to make it Islamically permissible?
2) Secondly my query is relating to network marketing. Is it permissible to generate an additional source of income through introducing people to sign up to an educational platform to teach them how to set up their own ecommerce business. This company allows people to introduce others and get paid for doing so. So essentially when they sign up it allows the new person to get trained and managed by myself selling in knowledge management services. ie how to set up a website etc

This company has other educational services such as teaching people how to trade forex, gold crypto etc which we know is not Islamically permissible but would it be permissible to generate an income from a company that also has these other dealings even though our dealing would only be regarding introducing people to drop shipping as we are doing ourselves

I look forward to your response and advice
Jazak Allah Khairan

Imran Arain

#2

Wasalam

May Allah bless you.

  1. Please see the link for the thread on dropshipping: Fatwa: Is Dropshipping/Drop Servicing Halal?

  2. Network marketing can be shariah compliant. It all depends on how it is structured. Usually, in the conventional sense, most scholars do reject networking marketing as being shariah compliant. Even some of those scholars who allowed it at the start, made a U turn to consider them as non compliant.
    Also, for such contract to be considered shariah compliant, the subject matter too must be considered halal. In your query, you have mentioned teaching services for trading forex. Conventional forex trading is not halal. So this issue must be addressed too.
    Selling gold crypto too must be completed in a shariah compliant manner. So the educational services provided must be reviewed too.

And Allah knows best!

#3

Salaam,
JazakAllah for your response.
I will read through the detailed explanation regarding dropshipping, thankyou for that. It seems at first glance that it can be permissable as long as certain terms and conditions are fulfilled inshallah.
On the second point of Network Marketing. You mentioned it depends on how its is structured; Are you able to outline under which circumstances or structure is Network marketing Shariah complaint?
The academy in question is called IM academy and is a large educational platform. Although they have educational platforms within the company where people can learn forex trading etc, however our dealings with the company will solely be relating to drop shipping alone. If we are to pursue the network marketing element of the business to generate an additional income that will also purely be from a dropshipping point of view. The basic structure is that you get paid for every person you introduce to the drop shipping educational platform and help/mentor/educate them on their journey to set up their ecommerce business.
I would welcome your advice on the matter.
JazakAllah