Q: I would like to know more about Bay'as Salam and how I can use this to make my dropshipping business halaal?
When a customer places an order, the supplier ships the product directly to the customer. You pay the supplier the wholesale cost of the product, and you keep the difference between the wholesale cost and the retail price as your profit. In a Salam contract, the buyer and seller agree on the price, quantity, and delivery date of the product. The seller receives the price of the product in advance, providing them with the necessary funds to produce the product. The buyer then takes delivery of the product at the agreed-upon future date. I would like to know if the above information provided on salam will allow me to use it in the dropshipping context as mentioned in the first paragraph.
A: In bay`us salam, the seller takes possession of the item and then passes it over to the buyer. This is not the case over here. You may do it on a commission basis, where the commission is fixed and known.
And Allah Ta'ala (الله تعالى) knows best.
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Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)
Q: With regards to the commission answer in the last email:
If I correspond with some vendor on the internet, and I say to him: I want to sell your product in return for a margin or profit that I add to the original price of the product, or let us say that I agree with him on how much profit I can add to the original price, is this regarded as haram?”
I then advertise his products. The customer orders from me. I keep my commission fee and the remainder goes to the supplier who then sends out the order. Will this type be counted as a halal way of dropshipping?
A: This will be permissible.
And Allah Ta'ala (الله تعالى) knows best.
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