Online dropship for business transaction in Malaysia: views from Muslim scholars

Nowadays, people are not only buying things in a traditional way but the advancement of technology has evolved and people buy products through online transaction.In Malaysia, the phenomenon of buying through online dropship agent becomes one of the popular ways of buying products.However, questions...

Full description

Bibliographic Details
Main Authors: Jahari, Nor Azah, Al-Aidaros, Al-Hasan
Format: Article
Language:English
Published: Islamic Business School 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/21080/1/IJIB%2011%282016%29%2013-28.pdf
_version_ 1825804492586614784
author Jahari, Nor Azah
Al-Aidaros, Al-Hasan
author_facet Jahari, Nor Azah
Al-Aidaros, Al-Hasan
author_sort Jahari, Nor Azah
collection UUM
description Nowadays, people are not only buying things in a traditional way but the advancement of technology has evolved and people buy products through online transaction.In Malaysia, the phenomenon of buying through online dropship agent becomes one of the popular ways of buying products.However, questions arise whether the transaction is in accordance to Shariah (Islamic Law) or the other way around. In practice, the dropship transaction uses agent as the seller of the product; where in fact the agent does not hold the product.The two important issues raised are the transaction itself whether it is considered as lawful or not; and the issue of uncertainty (Gharar). This study aims to explain the online dropship transaction from an Islamic perspective.Among the topics addressed in this paper are Gharar issues, transaction between the dropship agent, customer, and postage issues. Open ended questions were given to Muslim scholars in Malaysia and one interview with the dropship agent was conducted to support the findings.The results of this study show that the dropship transaction is considered valid from Islamic perspective as long as it is based on Bai as-salam concept.As the Shariah is being followed by both parties (dropship agent and buyer), than they will get the potential benefits from the business transaction because it makes them feel ease and satisfaction in conducting online business.
first_indexed 2024-07-04T06:16:24Z
format Article
id uum-21080
institution Universiti Utara Malaysia
language English
last_indexed 2024-07-04T06:16:24Z
publishDate 2016
publisher Islamic Business School
record_format eprints
spelling uum-210802017-05-02T07:07:02Z https://repo.uum.edu.my/id/eprint/21080/ Online dropship for business transaction in Malaysia: views from Muslim scholars Jahari, Nor Azah Al-Aidaros, Al-Hasan HB Economic Theory Nowadays, people are not only buying things in a traditional way but the advancement of technology has evolved and people buy products through online transaction.In Malaysia, the phenomenon of buying through online dropship agent becomes one of the popular ways of buying products.However, questions arise whether the transaction is in accordance to Shariah (Islamic Law) or the other way around. In practice, the dropship transaction uses agent as the seller of the product; where in fact the agent does not hold the product.The two important issues raised are the transaction itself whether it is considered as lawful or not; and the issue of uncertainty (Gharar). This study aims to explain the online dropship transaction from an Islamic perspective.Among the topics addressed in this paper are Gharar issues, transaction between the dropship agent, customer, and postage issues. Open ended questions were given to Muslim scholars in Malaysia and one interview with the dropship agent was conducted to support the findings.The results of this study show that the dropship transaction is considered valid from Islamic perspective as long as it is based on Bai as-salam concept.As the Shariah is being followed by both parties (dropship agent and buyer), than they will get the potential benefits from the business transaction because it makes them feel ease and satisfaction in conducting online business. Islamic Business School 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/21080/1/IJIB%2011%282016%29%2013-28.pdf Jahari, Nor Azah and Al-Aidaros, Al-Hasan (2016) Online dropship for business transaction in Malaysia: views from Muslim scholars. International Journal of Islamic Business (IJIB), 1 (1). pp. 13-28. ISSN 0127- 662X http://ijib.uum.edu.my/index.php/issue-1/ijib-11-jun-2016-13-27
spellingShingle HB Economic Theory
Jahari, Nor Azah
Al-Aidaros, Al-Hasan
Online dropship for business transaction in Malaysia: views from Muslim scholars
title Online dropship for business transaction in Malaysia: views from Muslim scholars
title_full Online dropship for business transaction in Malaysia: views from Muslim scholars
title_fullStr Online dropship for business transaction in Malaysia: views from Muslim scholars
title_full_unstemmed Online dropship for business transaction in Malaysia: views from Muslim scholars
title_short Online dropship for business transaction in Malaysia: views from Muslim scholars
title_sort online dropship for business transaction in malaysia views from muslim scholars
topic HB Economic Theory
url https://repo.uum.edu.my/id/eprint/21080/1/IJIB%2011%282016%29%2013-28.pdf
work_keys_str_mv AT jaharinorazah onlinedropshipforbusinesstransactioninmalaysiaviewsfrommuslimscholars
AT alaidarosalhasan onlinedropshipforbusinesstransactioninmalaysiaviewsfrommuslimscholars