Answered by Shaykh Abdul-Rahim Reasat
Question
I would like to get clarity on the permissibility of drop shipping business models. I plan to primarily sell/market items on marketplaces like eBay, Amazon, or FB using retail suppliers like Walmart, Home Depot, Target, etc., or use wholesale suppliers as well. I have read about salam sales as a way to make this model compliant with Sharia but need some more assurance. And would I need to mention in my listings that the items are being fulfilled by third-party suppliers?
Answer
I pray you are well.
Yes, this form of drop shipping would be permissible, as it fulfills the conditions generally laid out by the jurists for the salam sale. Do ensure that all the product descriptions and delivery dates are accurate.
Also, if your supplier cannot provide an item it is necessary for you to produce it and provide it to the buyer by the stipulated date. So, it’s best to ensure that your suppliers have sufficient stock before making a sale. [Usmani, Fiqh al Buyu’]
I suggest you study the laws of sales, salam, and riba in detail with a scholar. It will help you avoid any potential pitfalls. As the Prophet (Allah bless him and give him peace) said, “Indeed, the halal is clear, and the haram is clear. Between them are confusing matters that most do not know.“ [Bukhari]
Getting clarity from those who do know will give you much safety in your din.
May Allah grant you every success.
[Shaykh] Abdul-Rahim
Checked and Approved by Shaykh Faraz Rabbani