salam wa alaikum -Brothers and Sisters . I Am new To this forum and have a very Important Question To do with my current Situation Regarding Islamic Business Transactions.
I Would Like to Invest In A Business And sell A load of Products Online and i would Like to Use a Method Which Is called Dropshipping Which I know Is Not Permissible In Islam .
Most of you Will Know What dropshipping is , for Those Who Dont - its basically a product that you sell which You do Not phsyically Posess for e.g buy sell for (£12), once it is Sold
You then ( Seller ) Purchase The Product From the manufacturer or wholesaler Yourself for.eg (£10)
, they Then (manufacturer or wholesaler) Ship the Product Directly To Your Customer - With out You Physically having it . and The Profit Being £2 for Yourself. -
Now i know the Hadeeth Says "DO NOT SELL THAT WHICH YOU DO NOT POSSES" - which Is fine - However i Do know They are some halal Alternatives And way Around This - For example Transforming it
In to a salam transaction - where you receive payment first - then buy the product - which you then pyhysically posess yourself and delivering Goods to the customer - Other allternative Is to Act As a broker/agent And Gain
Comission On these Types Of transaction. Now i have Searched Other Forums LIKE " ASKIMAM.ORG AND ISLAMQA.ORG " And they Say direct Dropshipping Is not permissble Unless You Turn It in to a salam Transaction And You State To the Customer That The goods Are Not physically With You and that
You Are ADVERTISING These Products And will arrange For Its delivery But do Not physically Posses The Product Themselves.This Wil then Qualify For You to Have The wholesale Or manufacturer Post/ship Directly To the customer Without You Physically Posessing. (As Your verifying to customer You Do Not have the Product Yourself)
the Item Along with turning It in to salam transaction If You Understand What I am trying to say . I need Confirmation If this Is allowed Before I go in To this Business. As Other Types Of Income Like affiliate Marketing which That do Have a similiar Strategy To this
are Allowed Becuase In affiliate Marketing You are Advertising TThe Product - and once it sells - You gain a commision - Again without You touching The product of phsyically Having or shipping it WHICH IS HALAL because
You are simply Advertising it . Now thats what these forums Are saying where as if you turn it in to explaning You are advertising this Product and will arrange for its delivery iT WILL BECOME PERMISSIBLE.
Obviously The difference between this and affiliate Marketing Is that They Pay You first and then You Pay the wholesaler for the product and To ship direct customer - where as affilate
i think it goes direct to the Core seller and then you get a commision Becuase You advertised it succesffully Hence The sale . the Point im trying to make is that - with
affilaite Marketing - You do not touch the Products or have anything to do with it - But is halal - why? Becuase You are Just advertising the products to gain a commision if it sells through your advert.
Dropshipping In a way is a little Different - But does It become Halal if i say to the customer along the lines of - "you will be paying for the delivery of these good which i can arrange For You" -
As im Not saying i phsyically Have Them - as the hadith says "Do Not sell that which You do not posess" I wont Be saying I posess these Items - I Will be telling them the truth that they
will be paying for the service Of Me arranging These Products to be delivered to them . Also - For my Effort and time - services - would This Be allowed tO sell and gain Profit as My services - time and
effort Are being Used for basically - i could Add My profit On top of the Wholesale Price to sell to the customer becuase of My services - time and effort. Would all This BE allowed
in the shariah To use any of these reasons for me to start this Business .
Any comments And Posts and opinions Would Be welcomed and appreciated . But i would Also Like a scholar To inform Me if Any of these reasons Would Be allowed . If so Or if Not- could anyone or
any scholar Provide Me on detailed alternatives and Steps On something simialir Which is halal - Or maybe Tweak and change a few Steps In this exact Procedure to make it halal.
I would really greatly APPREICATE IT if i could Get a reply as I have Been stressing over this Topic.
Also below is The Link - Of the forums Who said its Permissble Unless you State You Will have delivery of good arranged for them and that You do Not phsycially Have it .
This is what askimam and islamqa had to say
"In the Name of Allah, the Most Gracious, the Most Merciful.
As-salamu ‘alaykum wa-rahmatullahi wa-barakatuh.
1-Drop Shipping works in two different ways. The way expressed in the question is not clear. Hereunder are the two ways in which drop shipping is normally done.
Seller “A” advertises an item on the website such as e-bay. “A” does not have the item in his possession at the time of the advertisement. Purchaser “B” answers to this advertisement and places his order by paying the amount to “A”. Once “A” receives the order and payment into his account either via Paypal or a similar service, “A” further places an order to the wholesale merchant (drop shipper) “C” at a wholesale price. “C” then dispatches the merchandise to “B” while “A” keeps the difference of listed price and wholesale price as his profit.
This way of drop-shipping is not permissible since “A” is selling an item which is not in his possession.[1]
The shariah compliant alternative for this form of drop-shipping is to do the transaction through the model of “Salam”. In Salam after receiving the money, “A” (muslam ilayh) will purchase the item from the wholesaler “C” and then make “C” his agent to deliver the item to “B”. The process would remain same except for that the following information will have to be explicitly advertised.
· Seller “A” would have to pronounce in his advertisement beforehand that he is not in possession of the item and will arrange its delivery once the rabbul maal “B” has paid the money.
· Complete description of the item being sold will have to be advertised.
· The time duration for delivery will have to be advertised.
thank ardianto ok can you sent my url or name or dropship forums
assalamualjkum ardianto
i find somethink some dropshipper forum but this forum not are very helpful for me can you advice me how i can find whosaler suppliers and how i can find visitors
i hope that soon to getting started
assalamualjkum ardianto
i find something some droppshiper forum but not are very helpful i thing soon i will getting started i have two question were i can find whosaler supplier and were i can find byers
i am waiting your advice from macedonia
assalamualjkum ardianto
i find something some droppshiper forum but not are very helpful i thing soon i will getting started i have two question were i can find whosaler supplier and were i can find byers
i am waiting your advice from macedonia
Wa'alaikumsalam. Sorry for late reply.
At first I will explain. There are two kind of commodities that you can sell in the web, "soft commodity" such as computer programs or e-book, and "hard commodity" such as clothes, bag, etc. And there is difference in selling these two kind of commodities.
"Soft commodity" is not limited by country's border because it sent electronically through internet. So, although you live in Macedonia, you still can sell e-book from vendor in USA to a buyer in Australia.
"Hard commodity" affected by country's border because this is real goods the need to be sent through vehicle. And if it sent to another country, it will become object of export-import rule. This is why mostly of online stores do not serve shipping to other countries.
You can find suppliers in your country in web. You can find through typing some keyword like "online store" or "selling handbag" (in your national language, not English). I don't know about online stores in your country, but in my country some online stores announce that they accept dropshipper.
Or maybe you are interested to sell "soft commodities" like e-book or computer programs which your market is not limited by country's border?. I recommend www.clickbank.com
How to find buyers?. You can read again post #17
I myself now planning to build online store and I will use dropshipping system for marketing, but only for Indonesian market. How I get suppliers?. I will contact few producers in my place to make products with model that special only for my online store. Indeed, need enough capital to build online store.
asalamualjkum ardianto
I am from Macedonia and you work with shipping goods in indonesia I want to know if I can ship goods which i sell online from online auctions,
I don't know if shiping agency or post is working in macedonia i want to ship goods from macedonia but i dont know if i can.
Can you advice about this
Wa'alaikumsalam Llogari. I am sorry for late reply.
I am just an agent of Indonesia based courier service company that more focus to domestic shipping and doesn't have office in Macedonia. But I think courier service companies in Macedonia are working too.
Or maybe you want to send package to other countries?. If you send a package to another country, then this shipment is classified as export and must follow the rule of export and import. It's means your package probably cannot enter the destination country without special document. Indeed, for commodities that barred to enter another country, the courier service company will refuse to send because they don't want to get problem like must send back the package to the origin country. Also, if your package can enter the destination country, probably the receiver must pay the entrance tax before he can receive your package.
There is rule that you must follow in shipping a package.
thanks ardianto
i want to ask if have any shipping office in me contry macedonia to shepp me goods in another contry in macedonia i know have DHL expres but i dont know if have any cheap shepping metodth
thanks ardianto
i want to ask if have any shipping office in me contry macedonia to shepp me goods in another contry in macedonia i know have DHL expres but i dont know if have any cheap shepping metodth
Like I've said, if you send something to another country, it's considered as export, and maybe your goods cannot enter the destination country, or the receiver must pay the entrance tax. You must consider it.
But bro, it's better if you start from dropshipper which you are just market and sell other people goods, and shipping is the duty of the goods owner. After you have enough experiences as dropshipper, then you can go up to the next level which you become the online store owner.
There are stages in success in business and you should not think to make a big leap because it will make you have no strong foundation. What you should do is passing stage by stage which you walk from slow then faster and faster.
If you clearly describe the item, that the order will be placed with you the seller, and delivery will be fulfilled by the third party while you the seller provide delivery timescales, according to the islamqa answer you received that would be permissible. I've seen this done on other websites like Amazon and Ratuken etc.
If you clearly describe the item, that the order will be placed with you the seller, and delivery will be fulfilled by the third party while you the seller provide delivery timescales, according to the islamqa answer you received that would be permissible. I've seen this done on other websites like Amazon and Ratuken etc.
for your insights, do you have link to the Islamqa fatwa?
for your insights, do you have link to the Islamqa fatwa?
It's quoted in the first post and reproduced below in that form - original poster should know how to find it as he asked the question.
This is what askimam and islamqa had to say
"In the Name of Allah, the Most Gracious, the Most Merciful.
As-salamu ‘alaykum wa-rahmatullahi wa-barakatuh.
1-Drop Shipping works in two different ways. The way expressed in the question is not clear. Hereunder are the two ways in which drop shipping is normally done.
Seller “A” advertises an item on the website such as e-bay. “A” does not have the item in his possession at the time of the advertisement. Purchaser “B” answers to this advertisement and places his order by paying the amount to “A”. Once “A” receives the order and payment into his account either via Paypal or a similar service, “A” further places an order to the wholesale merchant (drop shipper) “C” at a wholesale price. “C” then dispatches the merchandise to “B” while “A” keeps the difference of listed price and wholesale price as his profit.
This way of drop-shipping is not permissible since “A” is selling an item which is not in his possession.[1]
The shariah compliant alternative for this form of drop-shipping is to do the transaction through the model of “Salam”. In Salam after receiving the money, “A” (muslam ilayh) will purchase the item from the wholesaler “C” and then make “C” his agent to deliver the item to “B”. The process would remain same except for that the following information will have to be explicitly advertised.
· Seller “A” would have to pronounce in his advertisement beforehand that he is not in possession of the item and will arrange its delivery once the rabbul maal “B” has paid the money.
· Complete description of the item being sold will have to be advertised.
· The time duration for delivery will have to be advertised.
Dropshipping require a contract between the wholesaler who have the goods and the reseller who sell the goods. So, in this matter the position of the reseller is representative of the wholesaler. Not different than salesman who become representative of the company in selling goods to the buyer. Without contract, this is not dropshipping, or at least, not a legal dropshipping.
In dropshipping, if the reseller get an order, the reseller must tell the wholesaler about this order. And after the buyer make a payment, the wholesaler deliver the goods to the buyer. So, delivery process is arranged by the wholesaler, not the reseller. The payment process itself is depend on the agreement. There are wholesaler that obligate the buyer to pay directly to the wholesaler bank account, there are wholesaler that allow the reseller to receive payment and then send it to the wholesaler bank account. It's permissible because under agreement.
Do you mean you promote and offer other party goods although you don't have contract/agreement with the goods owner?.
This is not permissible because this is a speculation. Imagine if after you get a buyer, the goods owner refuse to sell his goods to you?. The reason behind prohibition to sell something that we don't posses is this speculative factor.
We are not allowed to sell other party goods, but we are allowed to become representative of the goods owner to sell something. Of course, with agreement between us and the goods owner.
What if I'm using a wepapp that allowed me to know if the item in Stock or not? i would like to tell you about my job i am reseller i sell items from Amazon to ebay but of course without any contract between me and the seller on Amazon i use a wepapp allow me to copy the item from Amazon and paste it on my eBay store and the wepapp do all the job after that when the item in Amazon is out of stock it appears in my eBay store is out of stock and when the seller on Amazon Rais the price automatically raises the price on my eBay store so the risk is equal to 0
also when someone buy an item from my store
the wepapp goes automatically to Amazon and place the order.
would be in this case permissible??
looking forward to hear from you
What if I'm using a wepapp that allowed me to know if the item in Stock or not? i would like to tell you about my job i am reseller i sell items from Amazon to ebay but of course without any contract between me and the seller on Amazon i use a wepapp allow me to copy the item from Amazon and paste it on my eBay store and the wepapp do all the job after that when the item in Amazon is out of stock it appears in my eBay store is out of stock and when the seller on Amazon Rais the price automatically raises the price on my eBay store so the risk is equal to 0
also when someone buy an item from my store
the wepapp goes automatically to Amazon and place the order.
would be in this case permissible??
looking forward to hear from you
When the sellers list their products in Amazon, they also give authority to Amazon to sell the products through the affiliates under Amazon. So, if you have registered as affiliate, then you atomatically also hold authority from the sellers to sell their products through Amazon.
thanks for your reply would you please explain it more i did not understand it 100%
and the affiliate program is totally different from what I do on eBay
I agree with the response in favor of drop shipping.
My take on drop shipping: It is a great way to earn money with little costs. Because you don't hold inventory, your costs of running a business are less.
For those of you who don't know what drop shipping is, it is a way to sell items in your online store by displaying the images along with descriptions and then when a customer orders the item from you (and makes payment to you), you then order it and have it shipped directly from the supplier to the customer. In my opinion, drop shipping fits the bay' al-salam (Al-Salam Selling Method) type of selling but there was a better explanation in one of the threads in this forum justifying drop shipping, although I couldn't find it now.
The internet offers resources to start a successful drop shipping business with little costs online. It is like having your store without needing to open an actual physical store. Although there are costs associated with advertising (expect minimum of $500 on advertising per month if you want to progress fast). Some paid advertising venues are Facebook, Google Ad Words, Instagram as well as free promotion sources.
The secret to becoming successful with drop shipping is to find a winning product and then scale it to sell loads of it.
I would suggest that, if you are doing drop shipping, then get 1 of each item you are selling to see the quality, so you know what you are selling, can describe it accurately and correctly, and have your own images and videos on your store and in ads. To keep costs low, you can have only a few products on your store (you will have to order fewer items to analyze and add more as you sell some. If you want to start a drop shipping store, use this link to sign up and I will PM you tips on making your store, 3 products you can sell, and vital tips for Facebook ads: https://www.shopify.com/?ref=radeya-global . To get the tips, you need to sign up using this link and then PM me when you are done.
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