Is Dropshipping Haram? If you are willing to go for this and you need information, then you are at the right place. We will guide you through all the details and rules of the Islamic community so that afterward you can make a decision.
Dropshipping is not haram for Muslims, but if it is done for the wrong stuff or any wrong way, then it is considered Haram. For instance, conducting business with goods that are prohibited by Islamic law is regarded as haram.
Therefore, a lot relies on the goods and services one offers to clients. You should not mislead anyone otherwise that will also be considered haram.
Also, if you are selling a product that you don’t own yourself is haram, but if you are transparent with the fact that the product is of a third party, then it is not haram. You also need to mention that you will get a commission from the supplier.
Is Dropshipping Haram Or Halal?
Dropshipping refers to a company or individual selling products on their website that they do not keep in stock. When the order is received, the mediator sends the order to the company that will directly send the parcel to the customer and you will get your commission.
Dropshipping is considered completely halal when the person does not sell any forbidden good or product to the customer. You should be crystal clear with your customers that you do not own a particular product and you are just the mediator.
You also need to be clear with the fact that you will earn a commission out of that, do not keep the customer in the illusion that you have the product at your own place. If you do this then it will be considered haram because you are not even true to your customers but also yourself.
Make sure that you are not involved with any corrupt or fraudulent activities. And yes, not to forget that the product you sell must be under Islamic guidelines and not be forbidden.
“The Prophet came to Medina and the people used to pay in advance the price of dates to be delivered within two or three years. He said (to them), ‘Whoever pays in advance the price of a thing to be delivered later should pay it for a specified measure at specified weight for a specified period.” . Bukhari no: 2239
What makes Dropshipping haram?
- Dropshipping is haram if you sell products that you do not own personally but you are telling everyone else that those are your products and you own the company. Basically, if you are lying for your business, it will be considered Haram.
- If you are selling or promoting the products that are prohibited in the Islamic culture, then it will be considered Haram.
- If you sell the product to the customer without telling him/ her full information i.e. you are a drop shipper, you do not have the product at your place, etc.
- If you do not clear the commission part on your side with everyone, this will be taken as haram.
In other words, drop shipping may be forbidden if you violate Islamic law or are unaware of it. Dropshipping is a fully halal business concept in any other case. Just be sure to do your homework on the goods you are offering, and don’t sell any that don’t adhere to Islamic principles.
Is Amazon Dropshipping Halal Or Haram?
In its traditional form, Amazon dropshipping is forbidden. It is evident from Hakim ibn Hizam’s hadith. You cannot sell something you purchase until you have ownership of it.
On the other hand, if you set up your Amazon drop shipping company so that you and the customer engage in the manner of a salam transaction, you are acting as an agent rather than a seller. Your Amazon drop delivery company may therefore be regarded as halal.
How To Make Dropshipping Halal?
If you want to do halal dropshipping, follow the steps mentioned below:
- First of all, make sure to do all the research about the products that you will be selling. They should not have any prohibited or forbidden material or ingredient, such as alcohol or pork.
- Secondly, make sure you are not selling products by practicing any haram activities such as gambling.
- Look for halal-certified suppliers when it comes to food.
- Make sure to remember the taxes. Try to implement a tax system like zakat or almsgiving that is consistent with Islamic ideals.
What are the benefits of Dropshipping?
- Dropshipping has the advantage of not requiring you to keep your own inventory.
- The fact that dropshipping is a low-overhead business strategy with a minimal capital requirement of $1000–$5000 is another advantage.
- The ability to offer a large selection of goods and capitalize on repeat customers to generate consistent revenue is drop shipping’s greatest advantage.
In conclusion, Dropshipping is considered halal if you follow all the Islamic rules and protocols and should never go for products that are forbidden in the Islamic culture. Also, make sure that your customers know that the products are not owned by you but by some company and you are just the mediator who will get a commission.
I hope this clarifies if dropshipping is allowed or not, as well as whether you should pursue a dropshipping business. You may make sure that your dropshipping company is halal and allowed in Islam by following to these rules.
Q 1: Is dropshipping prohibited by Islam?
A 1: By designating an agent to distribute the items and according to the salam transaction guidelines, drop shipping can be rendered halal. Islamic law considers the traditional drop shipment method to be unlawful since it goes against the Prophet’s hadith. Drop shipping can be a legal and halal business if it complies with Sharia law.
Q 2: What is the halal trade?
A 2: Under Islamic law, trading in commodities such as gold, silver, or agricultural products is lawful (halal) as long as the transactions follow the precepts of Islam.
Q 3: Is it acceptable to dropship in India?
In India, dropshipping is indeed permitted. This is an economical order fulfillment strategy in which the supplier manages production, packaging, and shipping, and the selling merchant handles marketing and sales.