Islamic Guidelines for Drop Shipping: A Guide for Muslim Business Owners

The Correct Method of Selling Products Not in Your Possession

Question: I run a perfume shop and do not stock certain expensive perfumes like Oud. When a customer orders such items, I place an order with my supplier and, upon receiving payment from the customer, keep my profit and pay the supplier. Is this method correct?

Answer: No, this method is not correct. The Prophet Muhammad (peace be upon him) prohibited selling something that is not in one’s possession. You are not selling an item that you own to the customer. You must first purchase the item from the supplier, take possession of it, and then sell it to the customer.

A permissible alternative is to act as an agent for the supplier and work on a profit/commission basis. There are two ways to handle the profit: either agree with the supplier that you will sell their items and keep a certain profit, or the supplier can give you a fixed profit on each item sold, as agreed upon. In this case, you will be acting as an agent for the supplier, and it is permissible to take profit in either of these ways.

 Sheikh Maqbool Ahmed Salafi حفظه الله

⟨Jeddah Dawah Center, Hayy Al-Salamah, Saudi Arabia⟩