Is It Permissible To Sell Products If I Do Not Stock Them?

QA-ID-0012

QUESTION

If I display products online on my own store/website which are not mine but a third parties or retailers products and I market or advertise these products

Then the products are ordered online through my website, the order details are forwarded to the retailer or owner of the product who then takes responsibility to send the product directly to the customer

My involvement is that I would act as an agent advertising the products and upon an order being placed I receive a fee or commission from the retailer

I gave the product description and details in full but do not keep or stock the product this is not in my possession.

Where any product is defective or damaged I agree to give the customer a full refund with no issues from my side.

Therefore can I if I state clearly that I act as the agent and mention I do not hold any products but when the order is placed that same product is available to send to the customer by the retailer, can I do this type of dealing and earn money or a fee/commission from it.

The price of the goods is fixed by the retailer and upon a sale being male a commission or fee would be given to me as the agent.

I have no control over setting a price for the product.

This is the understanding I have.

The product is sent to the customer by the retailer as I would not have any possession of the product available to me.

ANSWER

This is permissible. As you are considered the wakīl (agent) for the retailer, it is not required for you to own or possess the goods to be able to sell them to others. For such a business to be permissible, the following points must be followed:

  • the items being sold and advertised are halāl;
  • the customer is not deceived regarding the source of the products;
  • the commission amount being received from the retailer is fixed and specific in terms of the percentage (e.g. 10% of the sale price);
  • you do not charge the customer more than the price that is fixed by the retailer. Otherwise, you are not considered the agent and instead considered the direct seller, in which case the conditions of possession and ownership of goods apply.

والله تعالى أعلم
And Allāh Knows Best

Muhammad Kalim Misbahi

Muhammad Kalim Misbahi
Muhammad Kalim Misbahi

Muhammad Kalim, the founder of Fawatih, has pursued over a decade of traditional Islamic education, eventually specialising in Hanafi fiqh (jurisprudence).

Related Posts