Small tweaks in dropshipping

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.