June 26, 2012

Disadnantages Of Mail Order Business

Although mail order business has many advantages, it suffers from some drawbacks or disadvantages such as no personal contact between seller and customers, delay in service, no inspection of goods, chance of fraud, no credit facility, limited products etc

The disadvantages of mail order business can be described as follows:

1. Lack of personal contact

In mail order business , the producer/seller and customers cannot have direct personal contact with each other. The customers cannot get as much satisfaction as desired from the goods. As a result, they may be attracted towards other retailing institutions to buy necessary goods.

2. unnecessary delay

Unnecessary delay is a major disadvantage of mail order business. As in this method of purchase order takes comparatively long time to reach the producers' hand and also to give delivery of goods to buyers by mail, mail order business is delay-making business.

3. Lack of selection of goods

In mail order business, the customers cannot inspect goods; they cannot get selection facility and buy preferred goods.

4. Possibility of fraud

Buying goods through mail, the customers may be cheated by the sellers, they may have to face fraud and adultery of sellers. Customers' money may go in vain. So, mail order business is risky for customers.

5. Lack of free services

In mail order business, the customers cannot get free services from sellers. They also cannot get personal counseling from sellers.

                        
disadvantages-mail-order-business

6. No credit facility

The customers cannot get credit facility from sellers in mail order business. Since this business is done through mail, it is impossible for the customers to get goods on credit from sellers.

       Also Read:

7. limited types of goods

in mail order business, only limited types of goods can be bought and sold; the customers cannot buy whichever they need. Only small, durable, standardized and lightweight goods can be bought and sold through mail.

8. Increase in price

Mail order business takes many expenses in advertising , mailing advertising materials. The cost of mail services also increases. This is added to the price of goods; hence the customers have to pay additional price of the goods. So, high product price is also a notable disadvantage of mail order business.