Q: If a person does not own any products, he cannot sell them according to the hadith. But what will be the ruling for customized products which are made on order?
For example, furniture, customized packagings, custom business cards, custom printed clothes and many other things which are made only on order. These things cannot be kept in stock, because every product is made as per customer's requirements. Such products are neither with the seller nor with any factory. Because such products can be made only when the customer places the order, as per customer's requirements.
So my question is whether I can take the order from the customer as per my price and give it to the factory? And can I take the full money from the customer in advance? Please clear my doubt.
A: The transaction between yourself and the factory (who will manufacture the items for you) will be regarded as an ijaarah contract (hiring of services) in the case where you will provide the material and pay them for their labour. In the case where they will sell you the material and charge you for their labour, then this transaction between yourself and the factory will be regarded as an istisnaa contract (ordering the manufacture of an item).
However, it will not be permissible for you to sell the item to your customer/client until you acquire it and purchase it from the factory. Nevertheless, you may take an order for the customer/client, and once it is produced and supplied to you, you may then do the deal and sell it to him.
If you take the money from him in advance, you should inform him that you will keep the money for him and you will do the sale when you acquire the item.
Alternatively, you may act as a middleman between the client and the factory and take a fee for your service. In this case, you can take the full money from the customer in advance as you will be acting for him in giving the order to the factory and acquiring the items from them.
And Allah Ta'ala (الله تعالى) knows best.
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