question_answer

Explain the meaning and advantages of carrying on mail order business.

Answer:

Ans.     Mail order business is a type of retail trade where orders for the supply of goods are received from customers through mail and goods are dispatched through mail. The goods are supplied either by registered parcel or V.P.P. For this type of business, seller advertises in the leading dailies and magazines and desires the buyers to ask for quotation or price list from the seller. Mail order business has been described as shopping by post from the point of view of buyers and selling by post from the point of view of sellers. This form of retail trade has received wider application in USA and Canada. The leading mail order houses are Montgomery Ward Company, Sears Roebuck and Co. of USA. There are various types of mail order houses like general mail order houses, specialty mail order house, producer's mail order house, wholesaler's mail order house and middlemen type mail order. In this trade, there is no direct contact between the seller and the buyer.

The main advantages of mail-order business are given below:

1. This type of business can be started with a small amount of capital and involve less risks in comparison to other types of business houses.

2. Consumers staying at a distant place are benefitted by this method of sale.

3. There is no fear of bad debt as this business does not facilitate credit sale.

4. This business facilitates a country wide market and thereby results in market and operational economies.