[Q 210] Ruling on Taking Commission for Online Advertising of products

Question

I had question about drop shipping and whether it is permissible to open an online store selling products for other companies.

The price and availability of the item is set by the company selling the products. I would be acting solely as an agent and would mention that I do not own or have any products in my possession.

When an order is made, this is fulfilled by the company selling the product. I would simply be advertising their product for a commission upon the order being made and they would be the one selling and shipping it.

Please can you give me the islamic ruling for this. For any clarification I can provide you a contact number if required.

بسم الله الرحمن الرحيم

الجواب بعون الملك الوهاب اللهم هداية الحق والصواب

Answer

According to the details mentioned in the question, if you advertise any halal product on your online shop in a way that does not involve any lies, fraud or false statements, then it is permissible for you to advertise and receive commission from the company in case of a sale; because according to Islamic principles, if a person puts effort and hard work, spends their time, and helps sell another person’s product, then in return for the effort and hard work, taking the wage or commission prevalent according to norm is permissible.

And when advertising a product on an online store is considered a compensable job in our society, and there are transactions happening based on it, then you earning money through this process is also correct according to Islamic laws.

It is stated in Radd al-Muhtar:

الدلالة والإشارة ليست بعمل يستحق به الأجر، وإن قال على سبيل الخصوص بأن قال لرجل بعينه : إن دللتني على كذا فلك كذا إن مشى له فدله فله أجر المثل للمشي لأجله، لأن ذلك عمل يستحق بعقد الإجارة

(Rad al-Muhthar, Kitab Al-Ijararah, Volume 6, Page 95, Dar al-Fikr, Beirut)

The eminent Imam of Ahl al-Sunnah, Imam Ahmad Raza Khan رحمة الله عليه states: “If the seller went through hard work and effort, and spent their valuable time, they only deserve the customary payment – meaning wage is given for the level of effort, they should not receive more than that, even if their agreement with the buyer was for a much higher amount. And if the agreement was for less than the customary rate, they should take less, since they have consented to letting go of the excess.

It is stated in al-Khaniyah:

’’إن كان الدلال الأول عرض تعنى وذهب في ذلك روز كاره كان له أجر مثله بقدر عنائه وعمله‘‘

It is stated in al-Ashbah:

”بعہ لی بکذا ولک کذا فباع فله اجر المثل“

(Fatawa Rizwiyyah, vol. 19, p. 453, Raza Foundation, Lahore)

In summary: In the case presented, according to Islamic law, your position is that of a shared contractor. And when you have listed products on your store, advertised them, and put in effort to maintain your store, and all of these works are certainly considered compensable jobs in today’s time, then taking a commission in return is permissible for you.

Note: It should be clear that if you take a commission for selling a Muslim’s product, you can only take up to the customary rate, no more. As explained above. However, if you want to take a commission for selling a non-Muslim’s product, you can take whatever is mutually agreed upon. There is no limit in this case.

Answered By: Mufti Sajid Attari

Translated By: Shaheer Attari