Zakat on E-commerce and Dropshipping

Short answer: For your e-commerce business, zakat is due only on assets that you own and that meet the nisab threshold and have been in your possession for one lunar year (hawl). Details: Dropshipping involves selling goods you do not own; you merely facilitate the transaction. Since you never take ownership of the inventory, those goods are not your assets and are not subject to zakat. However, any cash or profits you have received from dropshipping that remain in your possession for a full year (and reach the nisab) are zakatable at 2.5%. If you also have owned inventory for your e-commerce store (e.g., stock you purchased and store in a warehouse), that inventory is considered 'urud al-tijarah (trade goods). Its market value at the end of each lunar year (along with cash and receivables) is added together, and if the total reaches the nisab of silver (approx. 595 grams) or gold (85 grams), zakat of 2.5% is due. Evidence: 1. Sahih al-Bukhari 1454 (P1) establishes that zakat is obligatory on the wealth of every Muslim who meets the conditions. 2. Sahih al-Bukhari 1451 (P2) and Sahih al-Bukhari 1450 (P6) indicate that zakat is based on ownership; property must be owned to be combined or split for zakat. This principle implies that goods not owned (dropshipped) are not part of one's zakatable wealth. 3. Sahih al-Bukhari 1398 (P12) includes zakat as one of the pillars of Islam, confirming its general obligation. Note: The provided hadiths do not specifically address e-commerce or dropshipping, but the general rules of ownership and trade goods apply. For complex situations involving mixed income, debt, and multiple platforms, consult a qualified scholar.