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Will this type of business be permissible?

Answered according to Hanafi Fiqh by DarulUloomTT.net

Message: Assalamu Alaikum.

I would like to make a query on the viability of operating a subscription box business from an Islamic perspective.

The whole model is based on delivering boxes with goodies (can range from cosmetics, organic products etc. it will not be haram in nature). These will be delivered to those who require the service. My issue is that since they pay in advance, for goods which I don’t currently possess, does that go against Islamic principles? Can consumers pay in advance for service of goods in future?

Wa Alaikum Assalaam,

الجواب و بالله التوفيق

Yes, consumers can pay in advance for goods in the future. Hence, this business which you have asked about is permissible. However, it is necessary that customers know exactly what are the prices of the items and the amount they need to pay, and for what they are paying their monies.

You are required to bring/deliver to them what they have paid for and what you have agreed to do. At the time of the contract with customers/consumers, the following must be clearly stated/identified and agreed to, by both buyer and seller:

  1. The items to be delivered to consumers.
  2. The amount that must be paid.
  3. The fixed time of delivery.

And Allah Knows Best.

Mufti Waseem Khan.

25/2/2016.

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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