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Drop shipping in the supply chain: fiqh perspective

Busari, Saheed Abdullahi and Zakariyah, Habeebullah and Aminu, Sikiru Olanrewaju (2021) Drop shipping in the supply chain: fiqh perspective. In: The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries. Lecture Notes in Networks and Systems, 194 (1). Springer International Publishing, Switzerland, pp. 629-644. ISBN 2367-3370

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Abstract. Drop shipping entails movement of goods where a dropshipper as entity A, sells goods that are physically stocked with entity B on a retail basis to a con�sumer using the online networking system. In Shari’ah, the permissibility of such business arrangement revolves around a fundamental concept of not selling what you do not own. There also exist information asymmetry between the parties where only the retailer merchant has more information than both the seller and the customer. Given its prevalence and increase patronage by Muslims, this study examined the permissibility of the dropshipping using juristic adaptation (Taky¯ıf Fiqh) to ascertain the Shar¯ı’ah compliance of the existing model. Analysis of the Shariah compliant issues in the transaction cycle show that the existing dropship�ping model is not fully compliant with the Shariah. Thus, alternative Shari’ah compliant contract in Wak¯alah, Salam and Parallel Salam are proposed to vali�date the dropshipping model for entrepreneurs who opt for Shari’ah compliant approach

Item Type: Book Chapter
Uncontrolled Keywords: Drop shipping · Supply chain · Shariah compliance · Wak¯alah · Parallel Salam · Disruption
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Depositing User: Dr. Saheed Abdullahi Busari
Date Deposited: 31 May 2021 09:26
Last Modified: 31 May 2021 09:26
URI: http://irep.iium.edu.my/id/eprint/89781

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