Selling a product before its manufacture
I have an online “direct to consumer” business whereby I have designed and created a product and work with contract manufacturers for its production. I then sell my product directly to consumers online. At times, customers will buy my product through my website, however, sometimes the product will be made the following day/two days after the purchase, by the manufacturer. I will then receive it and package it ready for delivery.
ALL relevant product details and descriptions are made clear on the website and the customer is informed of a time period whereby they should except it to be delivered (i.e. 3-5days). Is this kind of sale permitted?
Answer
Assalāmuʿalaykum Wa Raḥmatullāhi Wa Barakātuh
Under normal circumstances, it is necessary that the physical existence of an item be in the possession of the seller at the time of contracting a deal.
However, the Sharīʿah recognizes the concept of Istiṣnāʿ whereby the purchaser requests the seller to manufacture an item not yet in existence. Such a sale then comes into effect after a valid offer and acceptance from the respective parties has been made. The legality of such a deal also rests upon the condition that the non-existing item be accurately described and specified in detail.
In the current scenario, such a sale will not be valid since the item is non-existent, and hence, you have no possession of it as yet. However, the concept of Istiṣnāʿ will apply if the purchasers are well-informed that the items are currently not in existence and will be manufactured over a certain period of time for example.