Is It Permissible To Run a Fulfillment-by-Amazon Business?

Question:

Is it permissible to run a fulfillment-by-Amazon business?

Answer:

Wa alaykum assalam wa rahmatullahi wa barakatuh,

Dear questioner,

Thank you for your important question.

Yes, it is permissible to run a fulfillment-by-Amazon business. The business relationship with them is simply a number of ijarah contracts: one is hiring their storage space, their sorting service, and their delivery service. The rates are known and spelled out very clearly in the contract. There is no ambiguity (gharar) in the contract that I can identify.

Regarding selling items that one from another company’s stock at a higher price, please see:
https://dev.seekers.flywheelstaging.com/answers/shafii-fiqh/dropshipping-permissible/

On a personal note, I am no anarchist, but I do not feel very comfortable with these large corporations like Amazon getting more and more profits. I personally always try to buy products from the company/publisher itself and avoid giving the profits (and the power) to these few select companies. If it was financially viable, I would try and diversify the market with my own storage/delivery system.

In general, Islam teaches us to spend our money in ways that are as wholesome and beneficial to humanity as possible. If there are efforts to strive to higher standards of economic and financial ethics (such as fair trade), we should be as supportive of them as we can.

I pray this helps.

[Ustadh] Farid Dingle

Checked and Approved by Shaykh Faraz Rabbani

Ustadh Farid Dingle has completed extensive years of study in the sciences of the Arabic language and the various Islamic Sciences. During his studies, he also earned a CIFE Certificate in Islamic Finance. Over the years he has developed a masterful ability to craft lessons that help non-Arabic speakers gain a deep understanding of the language. He currently teaches courses in the Arabic Language.