Very Short Question and Answers - Mail Order Houses

A mail order house is a retail outlet that sells its products through mail, without direct personal contact between buyers and sellers.

They approach potential customers through advertisements in newspapers, magazines, circulars, catalogues, samples, bills, and price lists sent by post.

Price, features, delivery terms, and terms of payment are commonly provided.

VPP is an arrangement where goods are sent through post and are delivered to customers only after full payment is made at the time of delivery.

Goods are sent through a bank, which delivers the articles to customers only after the customer has made full payment.

Because such goods may spoil due to delays in delivery or cannot be transported easily through mail.

Products that can be easily graded and standardised, and that are easily transportable at low cost.

They do not require heavy expenditure on buildings and infrastructure, so they can be started with relatively low capital.

Sales take place directly between buyers and sellers, which removes the need for intermediaries.

Since goods are sold for cash and no credit is given, there is little or no possibility of bad debt.

It allows sellers to reach customers wherever there is access to postal services, enabling wide market coverage.

Lack of personal contact and no after-sales service.

Because such businesses rely heavily on advertisements and promotional material to attract customers.

There is usually no immediate delivery; processing and dispatching orders takes time, which can delay receipt.

Mail order houses do not provide credit facilities, requiring customers to pay the full amount upfront.

Perishable goods or bulky items that are difficult to handle and transport.

Dishonest traders may make false claims or not honour commitments, as buyers cannot examine goods before purchase.

Very important, since efficient postal services are needed for sending goods and correspondence; without postal services, the business cannot operate.

Many places may not have reliable postal facilities, limiting the reach of mail order business.

Goods are delivered to the customer’s doorstep, which is very convenient.