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Dropshipping Ownership

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by: Muftiyah Safiyya-Maryam Ahmed

Question:

I made a sale through a salam contract with a buyer. Then I went to purchase that item from the wholesaler that is located in China. The question arises once I have paid the wholesaler and the product is shipping to the customer. Who has the ownership of development, me the retailer or the wholesaler?

I saw a few fatwas saying arguing that if the product is destroyed or mishandled during shipping, the shipping company will be responsible. Therefore, this would mean that I wouldn’t have possession of the item throughout the process of drop shipping.

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

In a Salam contract, the risks of items being damaged, lost or destroyed fall on the seller, not the buyer. The seller is responsible for getting the items to the buyer intact who will fully become the owner of the item upon taking possession If the shipping company takes responsibility for damage that is acceptable as it is akin to a separate contract with the seller/supplier and the shipping company.

Only Allah knows best

Written by Muftiyah Safiyya-Maryam Ahmed

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

إِذَا قَبَضَ الْمُسْلَمُ إِلَيْهِ رَأْسَ الْمَال كَانَ لَهُ أَنْ يَتَصَرَّفَ فِيهِ بِكُل التَّصَرُّفَاتِ السَّائِغَةِ شَرْعًا؛ لأَِنَّهُ مِلْكُهُ وَتَحْتَ يَدِهِ.

أَمَّا الْمُسْلَمُ فِيهِ، فَرَغْمَ كَوْنِهِ أَصْبَحَ دَيْنًا لِلْمُسْلِمِ بِمُقْتَضَى الْعَقْدِ، إِلاَّ أَنَّ مَلَكِيَّتَهُ لَهُ غَيْرُ مُسْتَقِرَّةٍ قَال السُّيُوطِيُّ فِي (الأَْشْبَاهِ وَالنَّظَائِرِ) : ” جَمِيعُ الدُّيُونِ الَّتِي فِي الذِّمَّةِ بَعْدَ لُزُومِهَا وَقَبْضِ الْمُقَابِل لَهَا مُسْتَقِرَّةٌ إِلاَّ دَيْنًا وَاحِدًا، هُوَ دَيْنُ السَّلَمِ، فَإِنَّهُ وَإِنْ كَانَ لاَزِمًا فَهُوَ غَيْرُ مُسْتَقِرٍّ. وَإِنَّمَا كَانَ غَيْرَ مُسْتَقِرٍّ؛ لأَِنَّهُ بِصَدَدِ أَنْ يَطْرَأَ انْقِطَاعُ الْمُسْلَمِ فِيهِ، فَيَنْفَسِخَ الْعَقْدُ “(الموسوعة الفقهية الكويتية, سلم, التصرف في دين السلم قبل قبضه)

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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