Do you know what is mail-ordering business? what are the features, advantages, and disadvantages of mail-order business? In this article, we will learn what exactly is mail-order business is with its features, merits, and demerits in detail.
what is mail-ordered business?
Mail-order business is a retail business in which goods and services are sold through the post office. The customers get information and knowledge about the goods through the advertisement and customers send an order through the mail for the goods they need or want.
Similarly, sellers also send the goods to the customers through mail according to their demand.
In the same way, the Mail order business was introduced in 1872 in America. For the first time due to the long distance between seller and buyer. Similarly, It deals with lightweight and daily necessary goods.
In the same way, the Mail order business is a direct retailing business. It is shopping by mail. similarly, It is non-store retailing.
Features of mail-order business:
There are many features of mail-order business. some of the main features of mail-order business are mentioned below:
sale by post office
In mail-order, business goods are sold through the post office. Products are delivered to the customers through the post office.
In the same way, In mail-order business, there are no middlemen. Customers get easily by sending the mail to the sellers.
No retail shop and store
Similarly, there is no need to keep retail shops or stores in mail-order business. The seller can sell products without having any retail shop or store
Attractive and effective advertisement
IN mail-order business sellers run attractive and creative advertisements in different places. This will attract more customers and help to increase the sales volume.
Transaction of lightweight and standard goods
In the same way, There is mainly transaction of lightweight and standard goods in mail-order business. Lightweight goods make it more efficient to deliver to customers.
No personal contact between buyer and seller
similarly, In the mail-order business there is no personal contact between buyer and seller. Buyer sends mail to order product and seller sends product through the post office.
Limited goods trading
In the same way, there are limited goods in the mail-order business. Seller sells limited types of goods to make work efficient and easier.
Advantages of mail-order business:
There are many advantages of mail-order business but we discuss some of the main advantages as follows:
Quality and low price
In mail-order business, the customers get quality goods at a reliable price. Mainly Quality and standard goods are available in mail-order business.
Low operating expenses
Similarly, such businesses need very low operating expenses because there is no shop or salesman. In this way, It has low operating expenses.
Similarly, Mail-order business has a wider market because they can supply goods to different places where customers are.
In the same way, In mail-order business there are no middlemen. Customers can directly send mail to order goods from sellers without middlemen.
Similarly, In mail-order business there are home delivery facilities. The seller can sell goods to the home of the customers according to their address information.
In the mail-order business there is a cash transaction. This will help to save from the chances of bad debt.
Disadvantages of mail-order business:
With the many advantages mail-order business has also many disadvantages as mentioned below:
Lack of personal contact
In the mail-order business there is a lack of personal contact. Customers send mail to order goods and the seller delivers those goods without any personal contact.
Cheating or fraud
Similarly, In the mail-order business there is the possibility of fraud and cheating. Sellers can easily cheat customers because there is no personal contact.
No selection facility
In the same way, there is no selection facility for customers. They can not choose goods physically only able to order limited types of goods.
In this type of business, It takes a long time and unnecessary delays to deliver products to the customers.
Lack of free service
In the same way, In mail-order business there is no free service and maintenance facility for the customers.
No credit facility
In mail-order business there is a transaction of cash. It does not provide any credit facilities to the customers.
Similarly, In mail-order, retail business deals with limited types of goods that are not suitable for the selection of goods for the customers.
In the above, we discuss the mail-order business in detail. As we learn, It is the retail business in which goods are purchased by sending mail to the sellers. similarly, customers get information about the goods through advertisements and customers send an order through the mail for the goods they need and want.
As we discuss above mail-order business has many advantages like low operating expenses, No middlemen, a wider market, quality and reliable prices, and cash transactions.
Despite the advantages it also has many disadvantages i.e the possibility of fraud, taking a long time to deliver, lack of personal contact, and so on.