Shar‘i Analysis of Earning Through Drop Shipping❖ Question:
A Pakistani app allows users to earn money by selling products online. The app provides images and details of items like clothes, shoes, jewelry, machinery, makeup, etc., which users can share with others. If someone places an order through the shared image, the seller adds their profit margin to the base price and quotes the total cost to the buyer.
Once the customer orders, the seller enters their name and address in the app. The app itself delivers the product. The profit is transferred to the seller via Easypaisa, JazzCash, or bank account. Even if the customer returns the product, the seller still receives their profit. The order reaches the customer in the name of the seller, not the app.
The app pays users for selling through their platform and gives them full freedom to set profit margins. Is this method and the income derived from it permissible in Islam?
❖ Answer by Shaykh Ḥāfiẓ Khidr Ḥayāt (حفظه الله):
This business model is known as drop shipping.
According to detailed fatāwā issued by Lajnat al-ʿUlamāʾ li’l-Iftāʾ, the commonly practiced drop shipping method is not permissible in Islamic law.
The primary reasons are as follows:
❖ ① Claim of Ownership Without Actual Possession:
In this business, the seller presents themselves as the owner, while in reality, the product is not in their ownership or possession at the time of sale.
❖ ② Lack of Ownership and Physical Possession:
According to Sharīʿah, it is impermissible to sell an item unless it is in one’s ownership and physical possession.
In drop shipping, the seller does not have the product, nor do they have full authority or control over it.
❖ ③ Prohibition of
Islam prohibits selling an item before acquiring it in possession.
The Prophet ﷺ commanded that one must first take possession of a purchased item before selling it to another.
Since drop shipping violates all these fundamental Sharʿi conditions, conducting business through this method and earning from it is not considered permissible.
وَالله أعلم بالصواب
