Buying an item to resell it at a profit is permissible trade
Fatwa No: 294082

Question

Asalamu alaykum ya shaykh. Let's say for instance you buy people's work for the sole intention to resell it on another platform. Would the income you make from that be haram? If so, how will I go about rectifying my affairs? Barak'Allah feek.

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ʻalayhi wa sallam, is His Slave and Messenger.

The question is ambiguous. If you mean that one buys goods manufactured by another person for the purpose of selling them and making profit, there is no harm in that. This is what people practice in reality. The manufacturer sells his products to the merchant who sells them to customers and earn profit. Allaah The Exalted says (what means): {O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent.} [Quran 4:29] He also says (what means): {But Allaah has permitted trade and has forbidden interest.} [Quran 2:275]

However, if you mean that the merchant does not buy the goods but rather puts them up for sale while still owned by their manufacturer and in his possession and when he finds a buyer, he sells them to him at a higher price than the price required on part of the manufacturer to gain the difference in price, then this is impermissible because it falls under the category of selling items prior to gaining ownership and possession of them, which is prohibited. It should be noted that this person can act like a middleman or broker between the manufacturer (or service provider) and the buyer in return for a determined commission paid by one or both of them provided that the person from whom it is received knows about it.

For further information, please refer to Fatwa 287518.

Allaah Knows best.

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