An Analyze of the Dropshipping Model in the Manner of Islamic Law

Abstract

The fundamental principles determined based on the sources of Islamic law (Naṣṣ) have been a cornerstone not only in various aspects of life but also in commercial activities. Commercial problems which arise from development and change have been solved among these principles. The advancement of technology has led to changes in consumer demands, similarly affecting the methods of supply for requested products and services in the field of commerce. The popularity of the concept of the traditional market has begun to transform into the e-commerce model, and so virtual markets and stores have become significant trade centers along with physical stores. Initially, businesses conducted their sales through websites they established themselves, but after a while, various shopping sites that host numerous products and companies have emerged and taken earlier shopping site in the market. In this new commerce model, which is called Electronic Commerce (E-Commerce), people can easily shop at any time of the day using their computers and mobile devices instead of going to physical stores. E-commerce not only provides consumers with unlimited shopping opportunities without any specific location or time constraints, but it has also presented new commercial prospects. Many individuals have started engaging in business activities without the need for a physical store. One of these methods is known as dropshipping, which is a stockless e-sales approach. Dropshipping, an online retail e-commerce model also known as "stockless e-sales" or "stockless e-commerce," involves purchasing products directly from third-party suppliers and sending them directly to customers. This method has become an attractive business model for entrepreneurs due to its easier establishment process than other e-commerce business models and the fact that it requires less capital at the beginning. In this method, the seller copies the product catalog from their supplier's website and offers it for sale on their own website or social media networks. When a customer chooses and purchases a product on the seller's site, the dropshipping owner sends the product directly to the customer through the supplier company. Dropshipping, although its historical roots can be traced back to the early 1900s, has emerged as a significant sales model in recent times and gained rapid momentum in the market. Many companies, both domestically and internationally, offer dropshipping services to customers. In this context, the purpose of the research is to analyze dropshipping within the framework of the general principles of Islamic commercial law and determine its legal nature as an alternative sales model that can be easily adopted by people from all walks of life. The research first provides information about the legal relationship between the seller and the supplier in the dropshipping system. It then analyzes the sales process without holding stock within the scope of dropshipping, focusing on the sale of non-existent goods under the subheading "sale of the non-existent" and the sale of goods without act of taking (kabz) them. Finally, the dropshipping system is evaluated in terms of liability for defects and market price stability. In the context of the dropshipping model, the legal relationship between the parties was discussed, emphasizing that the seller's action of selecting products from the supplier's store, adding a certain margin, and offering them for sale in their own store can be considered as an independent sales contract. The issue of the seller offering products that are not in stock was evaluated within the scope of the ḥadīṯs prohibiting the sale of non-existent goods, narrated from the Prophet. The main argument for the imposition of the prohibition is also determined as "garar" that may arise due to the risk of non-delivery of the subject matter of the contract to the buyer. It was stated that the supplier's disclaimer of responsibility for returns and defects would not harm the validity of dropshipping transactions, and the condition of non-liability for defects is related to defects that are unknown at the beginning but may emerge later. It was emphasized that in cases of known defects, informing the seller is essential to ensure mutual consent in the contract and to prevent disputes. The study highlighted that dropshipping provides consumers with an alternative virtual market opportunity and that evaluating this method as intermediaries causing unnecessary price increases, without any contribution to product quality and consumer supply, would be misleading.