Fatwa ID: 04801

Answered by: Maulana Sibghat Ullah

 

Question

 

What Is the Islamic Ruling on the Shopify Issue?

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer: 

 

First, need to know what is Shopify?

 

Shopify is an eCommerce company which means like every other online company it constitutes selling an item which is not in one’s possession.

 

In Islam, you are required to be in possession of an item before you sell it. However, an exception is made to this rule in regard to an Islamic term called Salam. 

 

Salam is a forward financing transaction, where the financial institution pays in advance for buying specified assets, which the seller will supply on a pre-agreed date.

 

So, if your business is structured in accordance with the Salam model then it will be permissible to do your online business.

 

The Salam model requires the following:

 

The product must be properly specified in a manner that eliminates any possibility of uncertainty.

 

The product must be replaceable.

 

The contract must be used for general items. A Salam contract may be used for all generic items which are made to standardised specifications.

 

The commodity must remain available in the market right from the day of the contract up to the date of delivery. 

 

 

The delivery of the product must be deferred to a later time.

 

The price must be properly specified.

 

The price is paid up in full at the time of the contract.

 

The date and place of delivery are known. 

 

If these conditions are met, then it will be permissible.

 

 

Only Allah knows best

Written by Maulana Sibghat Ullah

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 

 

References:

Fatawa Usmani, Chapter of Salam, vol 7, page 87, Al Asr Academy Peshawar.

Fatawa Usmani, Chapter of Salam, vol 7, page 241, Al Asr Academy Peshawar.

Fatawa Usmani, Chapter of Salam, vol 7, page 243- 248, Al Asr Academy Peshawar.