Mail Order Houses : Mail order houses are retail concerns which carry on business through mail. Mail order business is known as "selling through post" for the retailer and "shopping by post" for the consumer.
Usefulness or advantages of Mail Order Houses :
Mail order business is beneficial to both sellers and buyers in the following ways :
1. Convenience : The customer can buy the goods without spending his time and money in travelling to the seller’s place. He gets home delivery of goods and can arrange for payment after giving the order. He can easily buy goods not available in the local market. He often gets a money back guarantee and can return the goods which are not up to the mark. Customers get an opportunity to select goods from a large range.
2. Low operating costs : A mail order house can be located at any place. It is not necessary to maintain showrooms, well-decorated and furnished shops, or a large sales force. There are no bad debts. Thus, the overhead costs of mail order business are low. Risk is also very low. Cross-freights are eliminated because goods can be despatched directly from the manufacturers to customers.
3. Small investment : The seller need not keep stocks as he can procure the goods after receiving orders. Therefore, mail order business can be operated with a small investment and with little risk.
4. Elimination of middlemen : Through mail order business, a manufacturer can directly sell goods to his customers. He need not depend upon middlemen. Direct contact with customers provides control over distribution channel and helps him in understanding customers preferences.
5. Country-wide market : Sales are not limited to local population. A businessman can sell goods to a large number of customers scattered throughout the country. Far off markets can be exploited with the help of postal facilities. The post office acts as the carrier of goods and the collector of sale proceeds. Temporary depressions in local markets do not result in complete loss of business.
6. Flexibility : The type of goods and the media of advertising can be adjusted easily to suit changing fashions. The mailing list can also be changed with shifts in population, etc. Sales are not dependent on the capacity of salemen as sales appeals are designed by experts.
Goods handled by mail order business : Mail order business is not possible in all types of goods. In order to be handled by mail order house, goods must satisfy the following conditions :
1. They should not be easily perishable, i.e., they must not get easily spoiled or deteriorated during the course of transit by post or rail parcel. Goods should be durable.
2. Goods should be standardised or gradable in quality.
3. They should be identified by a brand name or trade mark.
4. They should not be too heavy or bulky to be sent by mail.
Yogita Ingle 3 years, 11 months ago
Mail Order Houses : Mail order houses are retail concerns which carry on business through mail. Mail order business is known as "selling through post" for the retailer and "shopping by post" for the consumer.
Usefulness or advantages of Mail Order Houses :
Mail order business is beneficial to both sellers and buyers in the following ways :
1. Convenience : The customer can buy the goods without spending his time and money in travelling to the seller’s place. He gets home delivery of goods and can arrange for payment after giving the order. He can easily buy goods not available in the local market. He often gets a money back guarantee and can return the goods which are not up to the mark. Customers get an opportunity to select goods from a large range.
2. Low operating costs : A mail order house can be located at any place. It is not necessary to maintain showrooms, well-decorated and furnished shops, or a large sales force. There are no bad debts. Thus, the overhead costs of mail order business are low. Risk is also very low. Cross-freights are eliminated because goods can be despatched directly from the manufacturers to customers.
3. Small investment : The seller need not keep stocks as he can procure the goods after receiving orders. Therefore, mail order business can be operated with a small investment and with little risk.
4. Elimination of middlemen : Through mail order business, a manufacturer can directly sell goods to his customers. He need not depend upon middlemen. Direct contact with customers provides control over distribution channel and helps him in understanding customers preferences.
5. Country-wide market : Sales are not limited to local population. A businessman can sell goods to a large number of customers scattered throughout the country. Far off markets can be exploited with the help of postal facilities. The post office acts as the carrier of goods and the collector of sale proceeds. Temporary depressions in local markets do not result in complete loss of business.
6. Flexibility : The type of goods and the media of advertising can be adjusted easily to suit changing fashions. The mailing list can also be changed with shifts in population, etc. Sales are not dependent on the capacity of salemen as sales appeals are designed by experts.
Goods handled by mail order business : Mail order business is not possible in all types of goods. In order to be handled by mail order house, goods must satisfy the following conditions :
1. They should not be easily perishable, i.e., they must not get easily spoiled or deteriorated during the course of transit by post or rail parcel. Goods should be durable.
2. Goods should be standardised or gradable in quality.
3. They should be identified by a brand name or trade mark.
4. They should not be too heavy or bulky to be sent by mail.
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