June 26, 2012

Features Of Mail Order Business

Introduction

Mail order business is a type of business in which goods or services are sold directly to the customers through mail without retail outlet. Firms promotes their products through websites, catalogs, brochures or online platforms to attract potential buyers. Buyers place orders remotely and sellers deliver the products via mail or courier services. Generally, beauty products, office supplies, health products, computer and electronic items, jewelry, clothing etc. are sold through mail order business.  

Mail order business is different from other forms of business because of its some distinct features such as selling the products by post, no need of middlemen, no shop, no personal contact between producer and buyer, attention drawing advertising etc.

Main features of mail order business can be described as follows:

1. Sale by post

This is the unique feature of mail order business. In mail order business, purchase order is received through mail/post and goods are sent through mail/post. Payment of price for the goods is also is made by mail/post. It is said Value Payable Post (V.V.P).

2. Elimination Of Middlemen

Doing business by mail, middlemen are not needed. This automatically eliminates middlemen. The producers themselves directly send goods, as ordered, to consumers.

3. Non-store retailing

Mail order business is a non-store retailing. Shop is not needed to operate this type of business. It does not need to keep stock of goods.

4. Effective advertisement

Attractive as well as effective advertisement should be done to draw customers' attention in this business. Catalog, price list and other information about goods should be sent to customers at different times in this business.

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5. Selected goods

All types of goods cannot be sold through mail order business. Only durable, standard and lightweight goods become suitable to sell or purchase through mail/post.

6. No personal contact

No personal contact is another important feature of mail order business. In this business, the seller or producer and buyer cannot have personal or apparent contact with each other. Contact and business is done only by mail/post.

7. Wider Market

Another key feature of mail order business is that it removes geographical boundaries. So, firms can target customers across large areas such as remote and rural areas, underserved areas or even in international markets. 

8. No Bad Debts

Payments are made in advance for products or services. So, there is no risk of credit and bad debts.

9. Low Capital And Operational Costs

Mail order business can be started with less capital because it does not require physical space. It saves rent, utilities and other operational costs.

10. Deal On Durable Products

It is suitable for durable goods only. It is difficult to sell perishable products remotely through mail or courier.