Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
- Dropshipping in all forms is considered haram. Dropshipping is becoming an unavoidable part of e-commerce.
- If the dropshipping company you are working for is legitimate and is bound by the strict guidelines that are set up to protect the rights of the parties involved, you may work for it.
In responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
I do not think dropshipping in all forms is considered haram. There is no need to rush to condemn dropshipping companies as long as they comply with ethical guidelines and all of the terms and conditions are in place to protect the rights of the buyers and the sellers.
Prophet Muhammad (peace be upon him) allowed selling products before taking possession of them as long as their weights, measurements, and specifics to pre-empt cheating and exploitation.
Dropshipping is becoming an unavoidable part of e-commerce. If Muslims were to stay away from it, they would be lagging. Therefore, it should come under the category of things permitted under the rule of unavoidable necessity because they are so rampant that it would be impossible to avoid them altogether.
So, it would be best if you asked which company you are working for is legitimate and is bound by the strict guidelines that are set up to protect the rights of the parties involved you may continue. If you doubt, you should leave it and look for another job. Allah will surely provide for you if you try to find one.
For more about financial issues, see this section: Financial Issues
Almighty Allah knows best.