When people think about how to make money online (and nowadays there are more and more ways to do so, seemingly easy for many), they most commonly think of sales.
They consider selling various products rather than anything else, as this seems like a great way.
Although it is a very general online business, how the business is organized determines a lot.
There are various models of internet sales, and perhaps the most common is dropshipping.
One of the most significant issues is the issue of product delivery, and you will see later in this piece how this determines the fact can people of the Muslim faith do such a job, just like dropshipping.
The problem for the majority of the Muslim population lies in the fact that they do not own the product, and cannot ensure that it will be delivered, as we know, in dropshipping, delivery can be challenging because it can easily happen that the manufacturer cannot meet the deadline for production and dispatch of the shipments that were agreed.
In a dropshipping business, you don’t worry about the storage and delivery of goods, but the most important thing is to attract customers.
For any issue, clients will turn to the seller – and when it occurs, the seller does not have many things to do, but to compensate for the cost.
Dropshipping is a type of electronic trade where a merchant resells goods that he does not stock in his warehouses.
Additionally, this kind of business means that the items are sent presently by the manufacturer.
Or we can say it simply – the product is bought in one place and sent from another.
This business model implies an agreement between the seller and the manufacturer.
The seller sets his price, and the producer receives the agreed amount from the sale.
Let us return to the previously asked question – is this allowed for people of the Islamic faith to do?
Are there any limitations to doing so?
Is Dropshipping Haram or Halal In Islam?
At first glance, it seems that is a haram since it is not allowed in the Islamic faith to sell something that you do not own.
It is forbidden to do so, since this can be a major cause for future conflicts, as it may be that the item someone has bought from you will never be delivered, and this is just one thing that can go wrong.
The forbidding of trading, or in this case, we are talking about the sale of an item that a person who is selling does not possess is undeniable.
Nevertheless, the halal of the Salam trade directs us to one thing that can present the possibility for Islamic people to do dropshipping.
The primary cause for banning the trade of things if you do not own them is there because of the disproportionate suspense present in such trade, and it can most certainly lead to future conflicts.
When the hesitation can be eradicated and the delivery of the purchased item is insured, and when the dropshipping meets the Salam requirements then it becomes halal.
The Islamic people can do this work.
When the Salam trade is done, then there can find a practice of retail commerce done online.
The operation is easy and numerous rules and regulations protect the customer from any fraud.
So, if dropshipping seen as one way of work done online meets the Salam conditions then it is seen as halal, if not then it is forbidden.
Is there any exception when it comes to dropshipping in Islam?
When something is sold to someone who does not own that item, then it is halal to sell it, but if he owns the item then it is haram.
However, there is one example when it comes to this widespread rule for a variety of transactions named Salam, and when translated it is a type of sale that goes in forward.
To be more specific – a type of sale where the person who sells something, an item, embarks to provide some detailed item to the person who is buying it.
It is all set for some date in the future, and the person who is buying is paying in advance.
If Islam is to allow dropshipping, then one condition must be fulfilled, and that is to be a part of the Salam instrument.
When such transactions are performed, the person who is buying has agreed on paying a certain amount to the person who is selling it, and they have set the date and the place of the transaction.
When it comes to dropshipping, all of the same elements are present, except for one.
Here, in dropshipping, we get to have one more element – the manufacturer.
But, the Shari’ah does not specify that the manufacturer is an exact part of the trade.
Dropshipping can be put under the same category as Salam trade, as when it fulfills such conditions, and then we could see it as halal.
More about dropshipping
Droppshiping has so many benefits, and it is no wonder why so many people choose to do it.
One benefit is this – the seller focuses on product promotion and sales, while the manufacturer deals with creation and distribution, and both of them are making some money along the way.
The person who sells benefits from the dropshipping business model in numerous ways – and if you choose to do it, then you can work from your home and your computer, you only need wifi.
Also, we could say that dropshipping is such a small investment – as the store is on the Internet, there is no requirement to fund premises, labor force, rent a warehouse room, fill, and ship products, order goods, etc.
One of the biggest advantages is this – a person who chooses to do dropshipping does not need to buy items in advance.
He or she will buy them after someone has ordered them from him or her.
Also, even for people who have problems or limitations on what they are selling, there is a wide range of products – dropshipping enables diversification of the products offered, without additional investment in their production and distribution.
Some of the disadvantages are in the first place, your reputation as a seller.
We all know that it is truly important, as many customers have bad experiences because they were scammed; since online like everywhere else, there are those who want to trick others and make money along the way.
This most frequently occurs when buying goods from well-known brands where the price is incredibly low.
Not only can selling counterfeits ruin your company’s reputation, but it’s also a criminal offense.
Such problems occur regularly, especially for beginners who work with
In that case, count on customer anger, which can go so far as to shut down the company.
Such unpleasant scenes occur when a bad word about the e-store spreads, after which it is very difficult to repair the image.
This is something that not one person wants, and this is the aspect of disputes that are very common for the majority, particularly at the beginning of their work.
An additional challenge in developing a dropshipping business is the margins, which can sometimes be extremely low.
This happens when there are many sellers on the market selling similar or the same products.
In their desire to stand out, they sell products at almost factory prices, which affects the price formation in the market.
Although these sellers usually have bad websites, unreliable partners, and low-quality products, users will still remember the price they offer.
In this way, those who work professionally will be under pressure to lower the price to be competitive.
However, this does not mean that success is guaranteed.
The best-selling products and the most popular target groups attract the most sellers.
This means that in that case there are many sellers in the market, so it is more difficult to draw attention to your store and products.
In the end, this is also something that experts like to point out when they are speaking of dropshipping, and generally online commerce is the inability to control.
Here the control is spoken is this you, as someone who is a part of the dropshipping process is not able to control things, like delivery (and there is the main issue and the cause of numerous disputes), and also you cannot control what is the quality of the certain product.
In the end, it is important for all to remember that any potential success is short-lived if you trade bad goods that will keep customers waiting for weeks.
You will be left with a bad reputation and the money you desire to earn is going to be just a dream.
So, advice, if you want to do dropshipping, is to connect with manufacturers who offer a quality product at a reasonable price, concerning delivery times.
People of the Muslim faith, need to watch to fulfill some other requirements that we spoke about previously so that their online work is seen as halal.
Conclusion
Many sellers base their sales on email marketing, where they use a special approach to draw the attention of potential buyers to the products offered.
They do it in dropshipping, one of the most favorite ways of online commerce, which has taken the world by storm.
In this way, not only sales are encouraged, but also a special relationship with loyal customers is built.
Of course, every method of promotion on the Internet is used, just like social networks, where sales themselves often take place.
Many sellers earn more on Instagram than from selling on the official website, and this just shows that dropshipping has not reached its rise yet.
And it shows a place for improvement, but it also expands the way for frauds and disputes that cannot be solved so easily.
For people of the Muslim faith, there are certain aspects to know –
even when you are selling things in this way, you need to know what you are selling and who is your target audience.
Anything that is not aligned with Islamic legislation can be problematic for your business.
If you decide on some products that are “on trend”, be sure that the same thing has crossed the mind of thousands of other sellers.
That is why it is important to position yourself well in the market at the beginning, i.e. focus on a specific target group.
Depending on who you are talking to, the complete way of promoting the store will also depend, and for Islamic people, this should also be aligned with their beliefs, regardless of the halal status of dropshipping.
The primary cause for banning the trade of things if you do not own them is there because of the disproportionate suspense present in such trade, and it can most certainly lead to future conflicts.
When the hesitation can be eradicated and the delivery of the purchased item is insured, and when the dropshipping meets the Salam requirements then it becomes halal.
The prevalent legislation in the Islamic faith is that it is forbidden to trade something that you do not own yourself, that is not on your property.
This is haram, and the reason why this is the case is the – possibility of not being able to provide a certain item can be very prominent, and it can cause further problems.
It can lead to numerous conflicts, and not many of them can be solved easily, as the determination of guilt is quite blurred, and very commonly it goes on the seller who has not made a mistake.
Islamic faith sees these trading regulations as the need to eliminate any suspense and clarification of fairness, things must be very clear when it comes to trade, and when it comes to dropshipping things are not as clear as it seems.
Namely, if there is an error during the packaging and sending of the goods, the seller will be responsible for its quality or delivery time.
If we presume that we are selling an item that we do not own ourselves then there is a big chance that something will go wrong and there will be a dispute.
If we take a look at things from this perspective then it is haram to perform dropshipping or this type of trade.
But if you put, as we have said dropshipping can be put under the same category as Salam trade, then things are becoming different.
Then, this type of online commerce, a trade, becomes halal.
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