Fatwa: Is Dropshipping/Drop Servicing Halal?

ليس لدينا حاليًا رأي حول هذا السؤال. نحن لا نزال نبحث عن حل متوافق مع الشريعة

وفقكم الله وسدد رأيكم

السلام عليكم

Having seen your discussion on Dropshipping, this is a technical proposal:

  • A statement is posted in the Home Page stating that the items are sourced and are NOT with the seller.
  • Against Each Item, the wholesaler’s available qty in stock is also shown with the item, and it updates automatically.
  • After the user enters his Credit Card Detail (or any other online payment option) and Upon him Pressing the “BUY” button, the following occurs in this sequence:
    1- The Item is Purchased by the Seller from the Manufacturer.
    2- Once the Purchase is accepted (electronically), the Customer gets charged for the item (cost + Seller’s Markup whatever it is!)

With respect to defining risk and responsibility, this could be defined in the Terms&Conditions allocated the whole responsibility on the Seller, with a 100% money back Guarantee if the goods are not to the satisfaction of the Customer (Risk on the seller). The Product is directly shipped from the Manufacturer to the Customer, saving him money in double shipping and handling.

Wouldn’t the above address Shariaa compliance (at least the Hanafi School of Fiqh?).

BTW, Would your opinion also apply to services, e.g. App Development, Ad Campaigns, Media Creations and marketing, and all sorts of services requiring EFFORT and Creative Works? What about a carpenter who agrees with you to make a Kitchen Table? what if he doesn’t have the required raw materials yet? What if he gets his money upfront? is that Haram? What About if we Order a Pizza and Pay online? Obviously, the Pizza is not yet made when the Payment was effected? Many similar transactions come to mind where a service provider gets paid 100% before even providing the service (e.g. Pay for Electricity Connection First, before power is even connected).

Please advise.
و جزاكم الله خير.

Assalaamu alaykum,

How would a the buy order from the customer result in the seller purchasing the item from the manufacturer?

And is the payment from the customer happening at point 2?

@Mufti_Faraz_Adam when you say i cover the liability does that mean if something happens to the order I refund it or send a replacement.

Assalaamu alaykum, for ease of referece to all others, here’s below an extract:
(After the user enters his Credit Card Detail (or any other online payment option) and Upon him Pressing the “BUY” button, the following occurs in this sequence:
1- The Item is Purchased by the Seller from the Manufacturer.
2- Once the Purchase is accepted (electronically), the Customer gets charged for the item (cost + Seller’s Markup whatever it is!)

I agree with you. Normally, when the buyer clicks on the “BUY” Button, the transaction occurs and his payment is effected. Nevertheless, what I’m proposing is to CUSTOMIZE this button (php, html, .asp, jscript, etc) so that the online PURCHASE is Done and confirmed by the Manufacturer prior to executing the transaction and collection payment from the Customer. Basically, this is a technical solution to Buy before we Sell!

As stated earlier, the Seller takes full responsibility for delivery, and 100% Money Back Guarantee if anything went wrong. Would this be Shariah Compliant?

Jazakum Allah Khair.


السلام عليكم طبقا لهذا الفيديو هل يعتبر الدروب شيبنج حلال اذا تم الالتزام بما قاله مقدم المقطع المرئي واذا كان هناك أي خطأ في كلامه؟

هل اذا وضحت في الجزء الخاص بسياسات البيع أنني لا أملك المنتجات التي أعرضها هل هكذا أكون دخلت في باب السمسره
الجائز واذا كان ذلك صحيحا هل يجب أن أوضح للمشتري وللمورد هامش ربحي
وأعتذر علي الاطاله

after reading the previous article about dropshipping, one must ask himself what should be done to make it permissible and so I did. I intend to become a dropshipper but first, I need to know if this little tweaks will make dropshipping allowable, please help me:

  1. firstly, as stated in the former article, there are two problems concerning dropshipping; ownership and possession. to overcome those, It occurred to me the following solution: reach out to a supplier from whom you will purchase bulk for the product, warehouse it at some logistic company, and when you make orders, the warehouse who possibly has its own shipping company will ship the products to the customer in behalf of you.
  2. secondly, as a result of the current circumstances of coronavirus, it is impossible to predict exactly when the customer shall receive his products, on the other hand, it is easier to give him an interval of time (i.g. 7-15 days); is that permissible?
  3. finally, if the product is damaged or delayed, the customer shall choose between having his money back or demanding another product which he gets for free. after all, customer’s happiness is of the utmost importance in dropshipping.
    those are the three problems I hope you help me with.
    May Allah bless you

Assalaamu alaykum,

The question is, do you intend to sell the goods yourself to the customer or do you intend to charge a commission?

If you want to sell with a mark-up, you have to buy the item and take possession, and thereafter.

If its a standardised item, what you can do is contract a Salam contract with the customer which is simply making him pay in full at the time of order and give a maximum time for delivery. Then, you can go and buy the item from the supplier. However, you ensure you bear the logistics risk by paying for it.

The above would then be fine.

Allah knows best

Assalaamu alaykum
what do you mean by"a standardized item"?

What I mean is its an item that’s available in the market and not something which requires manufacturing.

I totally agree with you. It would be unrealistic to sell an item which is not yet manufactured.
so just to confirm, you are saying that basically, there are two ways to make this business permissible:
the first one is to buy bulk for the product, warehouse it at a paid warehouse who will take care of the shipment on behalf of me.
the second option is to ensure that the supplier has already manufactured a large quantity of the product I wish to sell, so that when I’ll have sells the product shall be ready to be shipped. And concerning the latter option, there is no need to buy in bulk ahead of time.
Am I right ?

To make this Shariah compliant, you should do the following:

  1. Sell as a Salam agreement (where you receive payment upfront) with customer.
  2. Thereafter, you go and purchase item from supplier.
  3. You take responsibility for shipping so possession (Qabdh) is done.
  4. Item is sent directly to customer.

@Mufti_Faraz_Adam @Mufti_Billal @ibrahimkhan
Asalamu alakum

Am i allowed to do dropshipping on facebook marketplace.

Wa alaykum salaam,

It all depends on the process you use.

You would need to highlight the process and liabilities at each stage for us to comment.

@Mufti_Faraz_Adam so when i go on facebook marketplace I post a listing for a product, I put the price and all the information about the different sizes. Then when sombody sees the post the message me and they say they want it. I ask them there shipping address and then they pay me on paypal or to my bank account. Then I go onto aliexpress and I order the item and I put it under there shipping address.

Salam Shiek…There is a website which sells beauty and wellness products for ladies…(Oriflame)…here we create account with them and we do marketing using phone,instagram etc and if we receive order, we take money from customer for confirmation of order and den we place order in the website which direct delivers to the customer…we get 20% off on the product which is our earning through the product…we are purchasing for my customer and i use my discount offer 20% while placing order,this 20 % is my earning…is it halal or haram…what is the proper way of doing business like this…shipping is done by manufacture…

Another quetion is…i have to form a team and brief them about new products and encourage them to sell …if they sell i get commission as they are in my team…is it permissible…

Dear Mufti Faraz Adam,

I have read alot on this forum and other sites about dropshipping, to find out wether it is halal or not.

I am still in confusion, because of two points.

I am referring to the usual way dropshipping is done online, not the unusual cases.

So, one sells on a marketplace (like ebay) or their own website, describing the product accurately, giving a delivery date range. After the customer purchases the product online, I then order it from the supplier, pay them and supply the details and shipping address (which is the customer’s). The supplier then ships it to the customer.

You said in a post above:
“3. You take responsibility for shipping so possession (Qabdh) is done.”

This is the point in question. What does this mean exactly? In reality, the supplier ships the product to the customer, using their shipping company. That’s practically how dropshipping works. It will not be possible to arrange shipping oneself.

If “you take responsibility for shipping” means that in the customer’s eyes I have responsibility then all is well, and should any problem occur I will be liable to the customer.

However, if you mean that I have to arrange shipping then this is not possible.

It is vital to understand this point, and this needs to be made clear to the layman, rather than him trying to understand what rulings mean in the practical world we find ourselves dealing with.

I cannot see how this shipping variation would make any difference to the business though. I hope a clear ruling can be given on this, especially as peoples livelihoods depend on it.

The other point is, do we have to state in our terms and conditions that we are dropshippers?

May Allah reward you for your efforts.

Hope to hear from you soon, as this is of huge importance.

I have spoken to some dropshippers who have been able to pay for shipping costs. This is potentially one way to make the process Shariah compliant. Although, there is no consensus on this among scholars. The issues in dropshipping are twofold:

  1. The type of sale you enter into with the end customer (this can be easily resolved through Salam or Istisna).

  2. You bearing asset risk upon purchasing the sale item from the supplier before delivery to the customer. This is key.

Given the dominance of dropshipping as a business model, there are several ideas being formulated on ensuring this to be Shariah compliant. At present, I am in discussion and review with several scholars at an alternative Shariah interpretation of dropshipping. Hopefully, a different approach will be released soon.

Can I Do Dropshipping It’s Halal or Haram