mail order business

In this article we will discuss about:- 1. Characteristics of Mail Order Business 2. Different Types 3. Suitability of Goods 4. Advantages 5. Disadvantages 6. Popularity. Contents: Characteristics of Mail Order Business Different Types of Mail Order Business Suitability of Goods for Mail Order Business Advantages of Mail Order Business Disadvantages of Mail Order Business Popularity of Mail Order Business in India 1. Characteristics of Mail Order Business: Mail order business is a kind of retail trading in which a seller receives orders from the consuming public by post and delivers the products by pest. It is referred to as ‘non-store impersonal retailing’. It is, thus, a ‘retail selling by post’ from the seller’s end and a ‘shopping through post’ by a customer. ADVERTISEMENTS: According to F.F. Clark, a mail order house is that type of retail institution which solicits patronage by means of catalogues sent through the mail and contain­ing detailed descriptions of merchandise offered for sale. The basic characteristics of a mail order business are: i. There is no direct contact between the buyers and the sellers. ii. The products are delivered at the very doors of the customers and the services of the middlemen are not taken. ADVERTISEMENTS: iii. The seller introduces the product to the prospective customers by sending printed catalogues or circulars, or other publicity media. Iv. The business is conducted through post office, railways, or air­ways, as the channels of distribution. 2. Different Types of Mail Order Business: The MOB can be grouped under three types as under: (1) MOB-Manufacturing type: ADVERTISEMENTS: A manufacturer sets up own agency to mar­ket and sell the goods by mail direct to the public without the services of middlemen. (2) MOB-Departmental type: A departmental store sets up another depa­rtment to execute orders received from outside. (3) MOB-Middlemen type: ADVERTISEMENTS: Middlemen like wholesalers, on receipt of orders or in anticipation of orders by post, purchase the goods from the manufacturers and dispatch the same by mail (post office or railways or airways) to the consumers. This type is called a proper mail order business. 3. Suitability of Goods for Mail Order Business: For the purpose of mail order business, the goods should possess the following characteristics:- (i) The goods should be durable, gradable and of standardised qualities. (ii) The goods should have a trade mark or a brand name and be of weight suitable to be sent by mail. ADVERTISEMENTS: (iii) The delivery costs should be very low in comparison to the price of the goods. (iv) The description of the goods should be clear so as to be easily understood by the customers. 4. Advantages of Mail Order Business: The MOB offers the follow­ing advantages: 1. From the customers’ view-points: ADVERTISEMENTS: (i) The goods which are not rea­dily available in the local markets can be ordered and received through mail by a customer. (ii) The customers are benefited as the goods are delivered at their very doors. (iii) The customers save the time and expense of shopping. (iv) The customers get tire to arrange for money to be paid till the goods are delivered by mail.