Mail order business is advantageous for both businessmen and customers because of buying economy, less cost of operation, wider market, elimination of middlemen, home delivery service, no bad debt etc.
The advantages of mail order business can be described as follows:
The advantages of mail order business can be described as follows:
1. Economy in buying
Mail order businessmen purchases goods from producers in large quantity. So, they purchase quality goods at reasonable price.
2. Low operating expenses
More capital is not needed to operate mail order business. It takes low operating expense because it does not need to pay rent for shop, this business does not need display of goods, investment does not need in furniture, racks etc. and no free service is needed to customers.
3. Wider market
Mail order business can attract customers from different parts and nook and crannies of the country. This type of business is very useful for the customers living far from city areas. So, its market goes on widening.
4. Elimination of middlemen
Mail order business brings customers and sellers in contact through mail. They can perform buying and selling without middlemen. This eliminates middlemen.
5. Home delivery
Home delivery service is another advantage of mail order business. The customers an receive goods at home in mail order business. This saves time of customers, they do not need to go to market and walk from one shop to another for selecting and buying goods.
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6. No bad debt
In mail order business , there is no fear for sellers of bad debts, because the seller either take price of goods in advance by post or sends goods through V.P.P.
In this way, both sellers and buyers can get benefits from mail order business.