Selling stock that doesn’t belong to me
السلامعليكم
One of friend buys certain items from a company. When he gets the stock he calls me and shows me what he has and gives me pricing.
I than make my list, put on pricing and send out my price list.
I than take my orders and pull stock out as I need. I don’t pay him upfront but i do get invoiced. I than deliver the goods and wait for payment from my customers and pay him. My customers know that I have a supplier and I do tell them that I have to confirm that I can get the goods once they have placed the order as sometimes stock could be sold. Is this permissible?
There has been instances where I haven’t been paid, so risk is on me. I also had a few instances where orders were cancelled but didn’t return the goods even though I was given the option as I felt this wasn’t “right”, as I wouldn’t have any risk. Would returning the goods be permissible? JazakAllah
Answer
Wa’alaykum as Salām wa raḥmatullāhi wa barakātuhu,
A person cannot sell that which he does not own. As such, the method of trading as mentioned in the question will not be correct.
You have the following options:
- Tell the seller to let you sell the merchandise on his behalf at a higher rate, and he should pay you commission.
- When a customer promises you that he wants to purchase from you an item, you purchase it in your own capacity from the supplier on credit. Thereafter, you sell it to the client. Once he pays you, you can settle your debt.