Shariah Issues in Online Retail and Marketplace Sector:
Companies involved in these industries may have some very significant shariah compliance issues.
Islamic investors are concerned that the companies are selling products on the platform which may not be in accordance with Islamic principles, meaning they cannot include haram (forbidden) items such as alcohol, pork, or gambling-related goods. Then raises the second and the main concern, which is the provision of media related services in these platforms.
The Islamicly Shariah Board is of the view that such industries must adhere to the Shariah principles, and the products sold by the platform must be in accordance with Islamic principles. Additionally, the Shariah Board also concurs that the provision of video streaming services is not permissible, as it contains movies, music television shows and musical performances, which goes against the Shariah principles.
Shariah Compliance Issues in Amazon:
When examining Amazon’s revenue streams from a Shariah compliance perspective, several Compliance issues arise:
Amazon engages in non-permissible activities. Notably, the physical stores segment includes non-permissible activities due to sales from alcohol, pork, and tobacco products, particularly within its whole foods segment. A shariah compliance concern arises regarding the revenue derived from the subscription services segment, which includes fees associated with Amazon Prime memberships granting access to various digital content, including video, audiobooks, music, and e-books, alongside faster delivery services.
Here are the key areas to consider: