Short answer
No. Buying something and selling it on for a profit is ordinary trade and halal. You must own the item, and for goods like shoes, clothes or electronics you must have taken possession of it before you resell it. Selling items you have only pre-ordered, or breaking a seller's resale ban you agreed to, is the problem.
Reselling is permissible. Movable goods may not be resold before they come into your possession, actual or constructive; such a sale is invalid (fasid). Land and buildings may be resold before possession in the view of Abu Hanifa and Abu Yusuf.
Other madhhabs
- Shafi'i
- Nothing at all, including land, may be resold before taking possession.
- Maliki
- The possession rule applies to foodstuffs only; other goods may be resold before possession.
Explanation
Buying low and selling high is the basis of trade, which Allah made lawful. Sneaker and streetwear reselling, retail arbitrage, flipping finds from thrift stores and selling on Amazon, eBay or Facebook Marketplace are all fine in principle. There is no limit on profit: see How much profit is allowed?
The conditions:
- Own it first. Listing an item you have not bought yet is selling what you do not have. See Is dropshipping halal?
- Take possession. The item should be with you, or in a warehouse or locker under your control and at your risk. A confirmed order still in the shop's hands is not enough.
- Be honest about condition, authenticity and defects. Selling fakes as real is fraud.
- Keep your agreements. If you bought tickets or limited items under terms that ban resale, or the law forbids it, you are bound by that.
- Do not hoard necessities. Buying up food, baby formula or medicine in a shortage to push up the price is forbidden hoarding. See Is hoarding haram?
Pre-orders and drops: selling an item while it is still "processing" or not yet delivered is not allowed. Wait until it arrives, or take a refundable deposit and a promise to sell, and complete the sale once you have it.
Reselling is also zakatable: items bought to resell are trade goods, valued at their sale price each zakat year. See zakat on business stock.
The evidence
Quran, Surah Al-Baqara 2:275
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ ﴿٢٧٥﴾
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
Buying and reselling is lawful trade.
Quran, Surah An-Nisaa 4:29
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ ۚ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًۭا ﴿٢٩﴾
O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful.
Profit comes through honest exchange by consent.
Sahih al-Bukhari 2136
Sahih... من ابتاع طعاما فلا يبعه حتى يستوفيه ...
"Whoever buys food should not sell it until he has received it in full."
Goods are resold only after taking possession.
Sunan Abi Dawud 3503
Graded sahih... لا تبع ما ليس عندك ...
"Do not sell what you do not have."
You cannot resell what you have not bought.
Where the ruling is recorded
- al-Hidaya, Kitab al-Buyu', chapter on selling before possession (al-tasarruf fi al-mabi'). Movables may not be resold before possession; land may, in the view of Abu Hanifa and Abu Yusuf.
- Minhaj al-Talibin, Kitab al-Buyu', on possession. The Shafi'i rule covering all goods.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.