Fatwa: Is Dropshipping/Drop Servicing Halal?

@Mufti_Faraz_Adam @Mufti_Billal @ibrahimkhan

@Mufti_Faraz_Adam @Mufti_Billal
Aslam alikeum business sharia-compliant.

Is there any problem with the first way from Islam web?

And if I refund the customer fully or give him a new one without extra money and paying the shipping again from my own money when the supplier shipped the product wrongly or there is problem with the product, does that mean i clear the final problem which is bearing risk?

And if I do this, can I take my refund from the supplier later?

Please respond

@Mufti_Billal @Mufti_Faraz_Adam Assalaamu alaykum, I have 2 questions about dropshipping :

1 - If I write in the terms and conditions of the site that I do dropshipping but not in the product description because it impacts less sales, does it work or is it not clear enough as I know that customers do not read them ?

2- About the precision of the delays, if it’s an estimation at 2-3 days it’s good or not, because the supplier doesn’t give precise delays it works or I have to be precise at the exact day ?

Thank you in advance for your answers !

Is it permissible if I write in the terms and conditions that I do not own these product and i out source them from a third party seller and have and I also have a 70 day refund policy so if you do not receive the product or its damages you can get your money back.

Assalam O Alaikum @Mufti_Faraz_Adam, @Mufti_Billal.
I have another way of doing drop shipping, which is described below.
Please advise if it is permissible.

I sell books on Amazon. I’ll describe my process here.

  1. I purchase books bibliographic information from my supplier (images, descriptions, etc).
  2. I pay a monthly fee to my supplier for inventory feeds
  3. I list books on Amzon for sale.
  4. A customer buys a book at Amazon. Amazon receives the full payment from the customer and tells me an order has been made.
  5. I contact my supplier to ship the book to the customer. The supplier charges me the wholesale price as well as the shipping and packaging fee.
  6. The supplier ships the book on my behalf. The packaging/labelling clearly indicates that the book is shipped from me. I hold full responsibility for shipment. If anything goes wrong with the shipment, I have to compensate the customer.
  7. I inform both Amazon and the customer that the book has been shipped.
  8. Amazon releases the payment.

— The books returns process is as below —

  1. Customer receives the book and in case decides to return the book (there may be many reasons, e.g. the book is damaged, not the same as described, or simply the customer changed mind).
  2. Customer contacts Amazon to make a return request.
  3. Amazon returns money to the customer and asks me to handle the return.
  4. I ask the customer to return the book to me.
  5. Once I receive the returned book, I may resell it or send it back to my supplier.

Jazak Allah for reading

Aslam Alikom

I hope you are all doing well.

I read all the comments. No one asked this question, and I am facing a crucial issue with the product’s pricing in Dropshipping model.

I don’t have ownership of the product, but I go with the ( Shariah System )

  1. The factory price - ( Ex- $1.00 )
  2. The Shipping price ( Ex- 10.00)

The overall price for dropshipping is $11.00 (No tax )

The method that I use

  1. factory price - $1.00 x 40% + $10.00 = 10.40

My price for the product is 10.40 the profit is 40 cent

(In some products which are $20 x 40% + 10.00 = $38.00 - profit is 8 )

So instead of 40%, am I allowed to charge them 80% or 100%

“3. You take responsibility for shipping so possession (Qabdh) is done.”

what do you mean by that ?

do you mean refunding the customer if an issue happened ?

if the supplier scammed me, I will refund the customer no doubt, because he did nothing wrong.

so is it halal this way ?

@Mufti_Billal @Mufti_Faraz_Adam

As Salamu Alaykum

I have two short questions.

1)I wanted to ask what if there was issues with shipping being delayed and the package didn’t arrive within the specified date but customer is fine in waiting even though I am offering option of refund. Does this negate salam contract and must I refund him even though he doesn’t want a refund and doesnt mind waiting?

2)Can I be being liable for delivery by offering a refund option if the product hasn’t arrived within the specific date described. This way I am bearing risk of losing money as I would be the one paying for the shipping fee to return the product to the manufacturer and then will refund the customer. Would this solve the issue of Qabdh as I am taking full responsibility for shipping.

What about just writing in your terms and conditions that the order from the buyer is only an offer?
Many online stores write that in their terms.
The offer is accepted with the shipping confirmation.
In the meantime, you can get the product.
But you still need to be liable for delivery.

For example the terms and conditins of Amazon:
Your order is an offer to Amazon to buy the product(s) in your order. When you place an order to purchase a product from Amazon, we will send you an e-mail confirming receipt of your order and containing the details of your order (the “Order Confirmation E-mail”). The Order Confirmation E-mail is acknowledgement that we have received your order, and does not confirm acceptance of your offer to buy the product(s) ordered. We only accept your offer, and conclude the contract of sale for a product ordered by you, when we dispatch the product to you and send e-mail confirmation to you that we’ve dispatched the product to you (the “Dispatch Confirmation E-mail”). If your order is dispatched in more than one package, you may receive a separate Dispatch Confirmation E-mail for each package, and each Dispatch Confirmation E-mail and corresponding dispatch will conclude a separate contract of sale between us for the product(s) specified in that Dispatch Confirmation E-mail.

@Mufti_Faraz_Adam @Mufti_Billal @Mufti_Faraz_Adam @Mufti_Billal I really need this question answered please.

I want to know in the salam contract it says to take payment in full. Is it fine in dropshipping if the customer has paid me in full and the money is in my shopify store meaning the money is mine however I pay the manufacturer with my money. The reason I ask this is because it takes 3 business days for funds to be processed from shopify to my bank card which can ruin fast shipping times. Bear in mind the money in shopify is guaranteed mine and is already in the process of being sent to me however is taking a few days due to processing. Please do answer this as soon as possible.

Asalamualikum sir how are you?.

Dear scholor:
i have a question if in dropshipping i buy from supplier and then they reserve it only for me in their wearhouse
they transfer it in their wearhouse for me so when an order come to me then i use it and said my supplier to send it to my customer
, so regarding this is it can premissible and also my supplier is also ready if the product is lost or damge so he will refund me.
If i said to my supplier that i have to not take refund of product if the product is lost or damage so is it okay ?.
Is it like taking risk or not?. Kindly Answer Sir.
ThankU.

Regards:FaisalFarooq

Salam Aleykum, do you have any updates for us ? Thank you