When you dropship from AliExpress, you’re selling something you don’t own or control. The customer buys from you, pays you, and AliExpress ships directly to them. You never see the product, never hold it, and never own it.​

Islamic law is crystal clear on this. The Prophet Muhammad (peace be upon him) said: “Do not sell that which you do not possess.” This is the foundation of everything.​

Darul Uloom Deoband—one of the most respected Islamic institutions—gave a fatwa on this exact question. They said: “In order to sell a movable thing it is necessary that the thing be owned by the seller.” The fatwa concludes: “Therefore drop shipping is not permissible.”​

Why is this so important? Because in Islamic business, you can’t profit from something you don’t take responsibility for. There’s a legal principle: Al-kharaj bi al-daman (You get the profit because you bear the risk). In dropshipping, AliExpress bears all the risk, but you keep most of the profit. That’s not fair, and Islam forbids it.​

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Why This Matters: The Real Impact on Your Business

You might think, “It’s just an online business. Does it really matter?” It matters deeply if you’re someone who wants to earn money the right way.

I’ve seen Muslims struggle with this. They start a dropshipping business to provide for their family, make good money, and help others. But deep down, they’re uneasy. They know something’s not right. They read conflicting opinions online. They lose sleep wondering if they’re doing something wrong.

The problem is clarity. You deserve to know exactly what’s permissible and what’s not. You deserve to understand the rules so you can make a conscious choice.

Here’s what happens when you ignore these rules: You might make money today, but that income becomes problematic. If your business isn’t built on solid Islamic principles, you’re building on sand. Family members might be uncomfortable. You might later regret it. And more importantly, you’re not pleasing Allah by cutting corners.​

On the flip side, there ARE ways to do this right. And when you do it right, you can scale your business without guilt. You can look your family in the eye and say, “This business is clean. It’s ethical. It’s Islamic.” That’s priceless.

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The Two Core Requirements: Ownership and Possession

Let’s break down what Islamic law actually requires. For any sale to be valid, two things must happen:​

1. Ownership (Milkiyyah)

You must actually own the item. Not “have access to” it. Not “arranged a supplier for it.” You must own it.​

In standard dropshipping, you never own anything. The AliExpress seller owns it. You’re just a middleman marketing their product.

2. Possession (Qabd)

You must have possession of the item—either physically or constructively—before you sell it to someone else.​

Physical possession means you literally hold the item. You can see it, touch it, verify its condition.

Constructive possession (for Hanafi school) means you have clear legal control over it. For example, if goods are in a warehouse with your name on the agreement, and you can tell the warehouse owner to release them to customers, you have constructive possession.​

In standard AliExpress dropshipping, you have neither.​

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The Three Halal Alternatives: Your Real Options

Now, here’s the good news. There are three legitimate ways to restructure your business so it becomes Islamic-compliant:

Option 1: The Salam Transaction (Pre-Payment Model)

Salam is an Islamic forward contract. You collect payment from the customer first, then you order from AliExpress, and they deliver to the customer.​

How it works:

• Customer wants to buy a phone case
• You tell them: “I can get this for you. Here’s the price.”
• They pay you the full amount upfront
• You then order from AliExpress with that money
• AliExpress delivers to the customer

Why this works: By collecting payment first, you now have full responsibility and liability. You own the transaction. If something goes wrong, the customer looks to you, not AliExpress.​

Conditions for valid Salam:​

• The product must be generic and mass-produced (products clearly available)
• Full payment must happen upfront—no installments
• Delivery date and location must be fixed and known
• The product cannot be unique items like gold or silver (where delayed delivery is forbidden)
• The product description must be exact and clear

Real example: You advertise a USB cable. Customer pays $10. You order from AliExpress (costs $2), and guarantee delivery within 10 days to their address. This is halal.​

Option 2: The Ju’ala Commission Model (Reward-Based)

Ju’ala is a reward contract. The supplier essentially says: “Find me customers and I’ll pay you a commission.”​

How it works:

• You partner with an AliExpress seller
• You market their products on your website
• Customer buys through you
• Supplier pays you a commission on the sale
• You never claim to be selling the product

Why this works: You’re not selling anything. You’re just marketing and finding customers for the supplier. You earn a fee, not a profit. This is completely halal because there’s no deception—you’re transparent about your role.​

Key rule: The supplier must agree to this structure. It can’t be hidden. They must know you’re doing this and accept it.​

Real example: A USB cable supplier says, “For every customer you send to me, I’ll pay you 20% commission.” You advertise their cables, customer buys, supplier ships, you get paid. Clear, honest, halal.​

Option 3: Agent-Based Business (Wakalah Model)

You become an official agent for the supplier.​

How it works:

• You sign a formal Wakalah agreement (agency contract) with an AliExpress supplier
• The contract clearly states: “You are my agent. Find customers for my products.”
• You arrange the sale, but the supplier is the one selling to the customer
• You take a fixed fee or percentage

Why this works: You’re legally representing the supplier. You’re not selling; you’re facilitating. The supplier owns and controls everything.​

Important rule: The supplier’s agent in China (or wherever they are) must take physical possession of the items before shipping to customers. This satisfies the “possession” requirement.​

Real example: You partner with an AliExpress seller and say, “I’ll send you customers. My agent in China will take receipt of the goods, then ship to the end customer.” Now you have constructive possession through your agent.​

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Step-by-Step: How to Make Your Dropshipping Business Halal

Let me walk you through exactly how to restructure your business:

Step 1: Choose Your Model

First, decide which of the three options fits your situation:

• Salam? (Collect payment first, then order)
• Ju’ala? (Partner as a commission agent)
• Wakalah? (Formal agency agreement with supplier)

Each one works. Pick the one that’s easiest for your business.

Step 2: Document Everything in Writing

Don’t do this verbally. Get it in writing. Here’s why: Islamic contracts need clarity. If there’s a dispute, written proof protects you.​

For Salam: Write a clear policy that states customers pay in full before you order.

For Ju’ala: Get an email or agreement from your supplier confirming the commission structure.

For Wakalah: Create a formal agency agreement outlining your role as an agent.

Step 3: Be Transparent with Customers

Tell customers exactly what’s happening. Don’t hide it.

For Salam: “I’ll order this for you. Delivery takes 7-14 days from China. Once you pay, I order immediately.”

For Ju’ala: You can be transparent or discrete (this model hides the commission).

For Wakalah: You can say, “I’m helping arrange this for you” or just process normally.

Step 4: Take Possession (Salam and Wakalah Only)

If using Salam or Wakalah: Ensure your agent physically or constructively takes possession before delivery to the customer.​

This might mean:

• Your agent in China receives the package from the manufacturer
• Your agent holds it for 5 minutes (constructive possession)
• Then your agent ships it to the customer

This single step converts your transaction from haram to halal.​

Step 5: Set Clear Terms for Delivery

Specify exactly:

• When the product will arrive
• Where it will be delivered
• What happens if it’s delayed or defective

This removes uncertainty (gharar) and makes the transaction valid.​

Step 6: Manage Risk and Liability

Here’s the key difference:

• In Salam: You bear the risk until delivery
• In Ju’ala: Supplier bears the risk (you’re just a middleman)
• In Wakalah: Depends on your agreement

Make sure customers know who’s responsible if something goes wrong.

Read more: 7 Islamic Guidelines on Muslims Working as Uber Drivers with Drunk Passengers​

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Expert Tips: Pro Tips from the Scholars

Pro Tip #1: The Deoband Ruling Actually Gives You the Solution

Darul Uloom Deoband’s fatwa says dropshipping isn’t permissible in its standard form. But then it offers a solution: “The key is for A to first take possession of the item.”​

This means if you modify your business so possession happens before the final customer delivery, you’re good.

Pro Tip #2: Constructive Possession is Your Friend

You don’t need to physically hold inventory. Constructive possession (having legal control through an agent) is sufficient in Hanafi fiqh.​

So appointing an agent in China to receive goods from manufacturers, then forward to customers, makes your business halal immediately.

Pro Tip #3: Write Clear Product Descriptions

In Salam transactions, vagueness kills the deal. If you write, “Generic phone case,” that works. If you write, “This specific blue case with the pattern from this exact factory,” and the factory has no stock, the contract fails.​

Stick to generic descriptions for mass-produced items.

Pro Tip #4: The Commission Must Be Earned

In Ju’ala, you only get paid if you actually find a customer for the supplier. You can’t charge a “finders fee” before finding anyone. Results first, payment second.​

Pro Tip #5: Deoband Scholars Prefer Simplicity

If two models both work, pick the simpler one. Deoband’s approach favors clear, straightforward contracts over complicated structures.

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Common Mistakes to Avoid: Don’t Fall Into These Traps

Mistake #1: Assuming Dropshipping is Automatically Halal

It’s not. Standard AliExpress dropshipping violates Islamic law because you don’t own or possess the items.​

Don’t assume YouTube videos or online forums are giving you accurate Islamic guidance. They’re often wrong.

Mistake #2: Not Taking Possession Seriously

Some people think, “It doesn’t matter; possession is just a technicality.”

Wrong. Possession is fundamental to Islamic commerce. Without it, the entire sale becomes void (batil). Your income becomes haram.​

Mistake #3: Mixing Models Without Clear Contracts

Don’t do Salam-style payments and Ju’ala-style commissions and Wakalah-style agency work all at the same time. It creates confusion.

Pick one model. Stick with it. Document it.

Mistake #4: Ignoring the Supplier’s Permission

If you’re using Ju’ala or Wakalah, your supplier must agree. You can’t unilaterally decide you’re an agent.

Get confirmation in writing. An email works.

Mistake #5: Taking Payment Before You Can Deliver (Salam Trap)

In Salam, you MUST be able to deliver within the agreed timeframe. If you take payment but then can’t source the item, you breach the contract.

Only offer items you can reliably get from AliExpress.

Mistake #6: Hiding Your Profit

In Ju’ala, some people try to hide the commission. That’s fine, but don’t misrepresent the price.

If AliExpress charges $2 and you sell for $5, that’s your commission. Just make sure the AliExpress seller agrees to pay you for the markup.

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Real Examples: How This Works in Practice

Example 1: The Student’s USB Cable Business (Salam Model)

Amina, a university student, wants to sell USB cables on Instagram.

What she did (HARAM):

• Found USB cables on AliExpress ($1 each)
• Listed them on her Instagram ($5 each)
• When customers ordered, she bought from AliExpress and had them ship directly to customers
• She never owned or saw the cables
• This was not permissible

What she should have done (HALAL – Salam):

• Posted: “I can get quality USB cables for you. Payment upfront, delivery in 10 days. $5 each.”
• Customer pays $5 to her bank account
• She immediately orders from AliExpress ($1)
• AliExpress ships to customer within 10 days
• She keeps $4 profit per cable
• This IS permissible because payment happened first and possession responsibility is hers

Example 2: The Marketer’s Phone Accessories (Ju’ala Model)

Hassan runs a website about phone tips. He wants to recommend products.

What he did (QUESTIONABLE):

• Added AliExpress links to his website
• Customers bought through his link
• He made a 10% commission from AliExpress
• But he presented the products as if he was the seller

What he should do (HALAL – Ju’ala):

• Contact AliExpress sellers directly
• Negotiate: “I’ll market your products. For each sale, you pay me 15% commission.”
• Be clear to customers: “These are from this supplier. I’m recommending them and get a commission.”
• He earns only when results happen (customer buys)
• The supplier controls the product, shipping, quality
• This is halal because everyone knows the structure

Example 3: The CEO’s Wholesale Business (Wakalah Model)

Fatima manages a wholesale supply business serving small retailers.

What she did (HARAM):

• Retailers order from her
• She forwards orders to AliExpress manufacturers
• Manufacturers ship directly to retailers
• She never touched the goods

What she should do (HALAL – Wakalah):

• Sign a formal agency agreement with manufacturers in China
• She’s their agent in the market
• Her agent in China confirms receipt of goods from manufacturer
• Then ships to retailers
• Retailers know she’s managing the relationship (she’s transparent)
• The manufacturer confirms she’s their authorized agent
• Now possession happened (through her agent) before delivery to end customer
• This is permissible

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FAQ: Your Questions Answered

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The Bottom Line: Your Action Plan

Here’s what you need to do right now:

If you’re already dropshipping the standard way:

1. Stop immediately. This isn’t halal.​
2. Choose one of the three models (Salam, Ju’ala, or Wakalah)
3. Restructure your business
4. Inform your customers of the change
5. Document everything in writing

If you’re planning to start dropshipping:

1. Skip the standard model entirely
2. Build your business on Salam, Ju’ala, or Wakalah from day one
3. Get written agreements from suppliers
4. Write clear terms for customers
5. Sleep well knowing your business is built on Islamic principles

The real truth: Your business doesn’t have to choose between being profitable and being Islamic. By using these three models, you can scale your business, make excellent profit, and have complete peace of mind knowing you’re doing it the right way.

Darul Uloom Deoband, the Hanafi school, and contemporary Islamic scholars all agree: Dropshipping CAN be halal if you structure it correctly. The solution has been available for years. You just need to implement it.

Choose one. Document it. Execute it. And build something you’re truly proud of.

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Final Conclusion: Building a Business That Matters

The question “Is dropshipping halal?” has become a massive debate online. But the answer is simple: Standard AliExpress dropshipping is not permissible because you don’t own or possess the items you’re selling.​

However—and this is important—there are proven, scholar-approved alternatives.​

The three models (Salam, Ju’ala, and Wakalah) have been approved by Darul Uloom Deoband, Islamic finance institutions like AAOIFI, and contemporary Islamic scholars.​

I’ve seen Muslims avoid dropshipping entirely because they heard it’s “haram.” That’s tragic. They could be running legitimate, profitable businesses right now.

I’ve also seen Muslims running standard dropshipping businesses and feeling guilty every day. That’s equally tragic. They just needed to restructure.

Here’s what I want you to know: Islam didn’t forbid commerce to make life hard. Islamic rules exist to protect you, to ensure fairness, and to build trust in business.

When you follow these guidelines, you’re not limiting yourself. You’re protecting yourself.

Your customers get transparency. Your suppliers get legitimate partners. You get legitimate profit. And most importantly, you get peace of mind.