Q: I am selling physical products on an online website. I had one product in stock, but got two orders for that product. Now, I have two options:
1. Manufacture the extra product to fulfill both my customers orders.
2. Buy the extra product from elsewhere and then get it shipped to my customer.
Are these options halaal? I know that dropshipping is not allowed Islamically as the seller does not own the product at the time of the sale, that is why I want clarification.
A: The first option is permissible as you are manufacturing the product yourself and delivering it to your customer.
The second option is also permissible provided that you take possession of the purchased item before delivering it to your customer.
If taking possession is difficult for you, then you may hire a transport company to deliver it to your customer. Since the transport company will be paid by you they will be acting on your behalf and their taking possession will be treated as you had taken possession.
Alternatively, you may become an agent for your customer in arranging the item for him from your supplier and take a commission for your service from him (i.e. from your customer). In this case you do not need to take possession of the item before delivering it to your customer. Rather, your supplier can deliver it directly to your customer.
And Allah Ta'ala (الله تعالى) knows best.
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