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HalalContext

Is Reselling for Profit Halal? (Flipping & Dropshipping)

Last verified: 21 January 2026
Scholarly Consensus Reviewed

Educational content only. We analyze reselling using the principles of Bay' (Trade), Qabd (Possession), and Ihtikar (Hoarding).

This is not financial, legal, or religious advice. Please consult a qualified scholar or professional for your specific situation. We do not issue fatwas.

"Buy low, sell high" is the oldest business model in the world. But in the age of bots, scalpers, and dropshipping, the line between clever trading and unfair exploitation is blurring. When does a profit become a sin?

Scholarly consensus overview

Reselling is generally Permissible. It is the definition of commerce.

Prohibitions apply only if you violate specific rules: Selling what you don't own (Short selling/Basic Dropshipping), Hoarding necessities (Ihtikar), or Deceiving the buyer about the quality.

Standard RetailBuying low, selling high
Dropshipping (Agency)If structured as Wakalah
Ticket ScalpingHoarding & Exploitation

The Golden Rule: Ownership

You cannot sell what is not yours. This prevents risk-free speculation. You must take possession (Qabd) of the item—bringing it into your risk zone—before you can sell it to someone else.

Tool 1: Dropshipping Checker

Most dropshippers violate this rule. Check your model.

Scalping vs Trading

Is buying a PS5 for £450 and selling it for £800 Halal?

Technically, yes, if you own it. There is no limit on profit margin in Islam. However, if you use bots to buy all the stock to create artificial scarcity, this enters the realm of Ihtikar (Hoarding), which is sinful, especially with essential items.

Tool 2: Value Analyzer

Are you a trader or a leech?

Selling Defective Goods

Reselling cars or used electronics is profitable, but often involves hiding issues. This destroys the Barakah of the income.

Tool 3: Defect Risk

The requirement for honesty.

The Red Line

Where do scholars draw the line?

  • 1
    Selling Haram Goods:

    You cannot dropship or resell Items which are themselves Haram (e.g., Alcohol, Pork, Idols, Imitation Jewllery for men). The profit from these is entirely Forbidden.

  • 2
    Intercepting the Market (Talaqqi al-Rukban):

    The Prophet (SAW) forbade meeting farmers outside the city to buy their goods cheap before they knew the market price. In modern terms, insider trading or exploiting someone's lack of knowledge (information asymmetry) to underpay them significantly is prohibited.

Summary & Practical Guidance

  • Own before you sell: Ensure you have the item (or at least a valid agency contract) before listing it.
  • Add Value: The best Rizq comes from service. Curating, delivering, repairing, or verifying items adds value that justifies your markup.

Methodology

Analyzing E-Commerce

We applied the Hadith of Hakim ibn Hizam ("Do not sell what you do not possess") to modern dropshipping models.

Scholarly Sources & References:
  • Mufti Menk: "Rulings on Dropshipping".
  • Sheikh Yasir Qadhi: "Business Ethics in Islam".

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