Drop shipping

Q: Drop shipping is selling at high rate and then buying low. It is achieved by selling products on own or some popular website and then ordering wholesale merchant to supply to the customer paying him at his lower price. In doing so, it may also happen that the wholesale merchant runs short of products when we order him to supply some product to the customer. Upon selling on some popular website, that website cuts 10-15% of selling price. So, what type of thing this drop shipping business is in Islam?

Bismillaah

A: It is incorrect to sell something that is not in your possession. One way of overcoming this is to become an agent of the supplier and collect a commission for marketing his products.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)