What is the ruling on sales by commission?
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The questioner : May Allah reward you, O honorable Shaykh: What is the ruling in the Shari'ah, in your opinion, regarding sales by commission and selling goods purchased from abroad before they arrive at the shop?
The Shaykh : What is sales by commission?
The questioner : Sales by commission, for example, is when one gives another person goods and says, "Whatever you sell from them, pay me the price, and I will deal with the rest. Return to me whatever you do not sell."
The Shaykh : These are two questions in one: The first question is: What is the ruling on sales by commission? He says, "I sold you these goods, so whatever you sell is on your sale, and whatever you do not sell, return it to me." This transaction is forbidden, because it inevitably leads to ignorance, since neither the seller nor the buyer knows what will be sold from these goods, so the matter reverts to ignorance. It is established from the Messenger of Allah (peace and blessings be upon him) that he said, and it is established from him that heSunan Abi Dawud 3376Sahih (Al-Albani) This is undoubtedly excessive uncertainty.
However, if it is necessary for the two parties to engage in this transaction, let the one who has the goods say, "Take these and sell them as my agent." If he sells them as an agent and gives him a fee for his agency, the objective of both parties is achieved. Thus, the second becomes an agent for the first for a fee, and there is nothing wrong with that.
The Shaykh : What is sales by commission?
The questioner : Sales by commission, for example, is when one gives another person goods and says, "Whatever you sell from them, pay me the price, and I will deal with the rest. Return to me whatever you do not sell."
The Shaykh : These are two questions in one: The first question is: What is the ruling on sales by commission? He says, "I sold you these goods, so whatever you sell is on your sale, and whatever you do not sell, return it to me." This transaction is forbidden, because it inevitably leads to ignorance, since neither the seller nor the buyer knows what will be sold from these goods, so the matter reverts to ignorance. It is established from the Messenger of Allah (peace and blessings be upon him) that he said, and it is established from him that he
forbade the type of sale which involves risk (or uncertainty)
نهى عن بيع الغررHowever, if it is necessary for the two parties to engage in this transaction, let the one who has the goods say, "Take these and sell them as my agent." If he sells them as an agent and gives him a fee for his agency, the objective of both parties is achieved. Thus, the second becomes an agent for the first for a fee, and there is nothing wrong with that.