The method of dropshipping is that the seller, without keeping goods with himself, posts pictures and description on a website; upon receiving an order, he buys that same goods from the supplier and has it sent directly to the customer, and the difference between the two prices is his profit. What is its Shar'i ruling? Also, what about exaggeration and false statements in the description of products?

Selling something that is neither in the seller's ownership nor in his possession is haram by explicit text. Hakim ibn Hizam, may Allah be pleased with him, said: O Messenger of Allah! A man comes to me and asks for something that is not with me; should I sell it to him and then buy it from the market and give it to him? He, peace and blessings be upon him, said: "Do not sell what is not with you" (Jami' at-Tirmidhi: 1232, Sunan Abi Dawud: 3503, Sunan an-Nasa'i: 4613, Sunan Ibn Majah: 2187). And he said: "Profit is not lawful for that whose liability (risk of loss) is not upon you" (Jami' at-Tirmidhi: 1234, Sunan Abi Dawud: 3504). The prevalent form of dropshipping is exactly this: sale first, purchase later, and the risk of loss also upon the supplier. Imam Ibn Qudamah, may Allah have mercy on him, has related in "al-Mughni" the agreement of the scholars on this prohibition. Similarly, goods that have been bought may not be sold onward before taking possession; possession must come first — whether actual or constructive, for example the goods come into his warehouse or under his control — then the sale takes place. In the sale of non-existent goods there is also the defect of gharar sale, which the Messenger of Allah, peace and blessings be upon him, forbade (Sahih Muslim: 1513).

- Buying and selling after taking possession: This is the original trade that Allah has permitted: ﴿إِلَّا أَنْ تَكُونَ تِجَارَةً عَنْ تَرَاضٍ مِنْكُمْ﴾ (unless it be trade by mutual consent among you) (Surah an-Nisa: 29). - Agency and brokerage: The seller becomes the agent of the owner of the goods and, for an agreed commission, brings a customer and causes the sale; his profit is the fee for agency, it is permissible. - Salam sale with its conditions: The price is received in full in the sitting of the contract, and the attributes of the goods, the quantity and the delivery period are specified. The Messenger of Allah, peace and blessings be upon him, said: "Whoever enters into a salam transaction should do so for a known measure, a known weight and for a known term" (Sahih al-Bukhari: 2240). On ordinary online platforms the price remains held with the platform instead of the seller, therefore the basic condition of salam is generally not fulfilled; the ruling on each scheme will be applied by looking at its actual contract.

Stating in the picture and description such attributes as are not present in the goods, posting a fake picture, or concealing a defect — this is deception: "Whoever deceives us is not one of us" (Sahih Muslim: 101). And for those who give short measure in quantity and description, Allah Almighty has given a warning: ﴿وَيْلٌ لِلْمُطَفِّفِينَ﴾ (Woe to those who give less in measure) (Surah al-Mutaffifin: 1). If the goods turn out not to be in accordance with the stated description, the buyer has the option to return them (khiyar al-wasf), and compensation for it becomes necessary upon the seller.

The Shariah has made trustworthiness and transparency in trade a means of protecting wealth. Earning profit without ownership and without liability is a form of consuming wealth by false means. When a halal alternative exists, there is no need to adopt a doubtful form.

Translated from the original Urdu fatwa.