Dropshipping

Q: Is this form of dropshipping allowed: 

I advertise the product of a supplier with a 20% increase in price on my store. All products on my store have the same percentage increase from the wholesale price. I consider the 20% as the commission I receive. This has not been communicated with the suppliers, as there are many suppliers whose products are being advertised on my store. 

When a customer places an order, the product is shipped directly to them. The customer pays shipping fee. They are informed that I purchase the product on their behalf and take a commission, but may not know who exactly the supplier is, or how much commission is taken (they just see total price after commission added).

A: The correct procedure is to inform the customer that you are not the supplier but you will arrange the item for him from the supplier and then get it delivered to him. Similarly, you should inform the customer that you will take 20% of the total amount as your commission fee.

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

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)