Can I sell something I don't own yet? (Dropshipping)
The question as asked, details removedI take orders online and then buy the item from a supplier. Can I sell an item before I own it?More
This is a sample answer written to show how the site works. It follows the standard Hanafi books, but no mufti has reviewed or signed it yet, so it is not a fatwa. For a real answer, ask a question. Ask a mufti
بِسْمِ اللهِ الرَّحْمٰنِ الرَّحِيْمِ اَلْجَوَابُ بِعَوْنِ الْمَلِكِ الْوَهَّابِ اَللّٰهُمَّ هِدَايَةَ الْحَقِّ وَالصَّوَابِ
1Short answer
Selling goods you do not yet own, or have not yet taken possession of, is not allowed. You may take the order as a promise, buy the item, take possession, then sell it. Or work as the supplier's agent for a commission, or as the buyer's agent for a fee.
2Detailed answer
A sale is valid only if the seller owns the goods and, for movable goods, has taken possession of them, either physically or by having them placed under his control. So selling first and buying afterwards, as in common dropshipping, is not valid. Lawful ways to run the same business:
- Promise, then sale: show the item and take the customer's order as a promise to buy. Buy the item yourself and take possession (for example, it is delivered to you or your agent). Then complete the sale to the customer.
- Agent for the supplier: sell the supplier's goods on their behalf, for an agreed commission, making clear to the customer that you are selling for the supplier.
- Agent for the buyer: buy the item on the customer's behalf, for an agreed fee.
Your contract and your website should say clearly which of these you are doing.
3Evidence and sources
- Sunan Abi Dawud, Book of Sales
- Jami' al-Tirmidhi, Book of Sales
- Sahih al-Bukhari, Book of Sales
- Al-Hidayah, Book of Sales
Arabic texts, translations and how the ruling was derived
لا تبع ما ليس عندك
Meaning: Do not sell what you do not have.
من ابتاع طعاما فلا يبعه حتى يستوفيه
Meaning: Whoever buys food, let him not sell it until he has received it in full.
Sayyiduna Hakim ibn Hizam asked about selling things he did not yet have and buying them afterwards, and received the first answer. The Hanafi scholars extend the second hadith to all movable goods.
وَاللهُ أَعْلَمُ عَزَّوَجَلَّ وَرَسُوْلُهُ أَعْلَمُ صَلَّى اللهُ تَعَالٰى عَلَيْهِ وَآلِهِ وَسَلَّمَ