What are the advantages of mail order?

1. Low costs:

The operating expenses of mail order business are quite low. There is no need to set up a shop and decorate it. A mail order house need not maintain costly sales staff. It need not keep huge stock of goods and goods can be procured even after receiving the orders from customers. Therefore, prices can be kept low.

2. Convenience in shopping:

Consumers can buy their requirements while sitting in their houses. They need not spend time and money on travelling to the retailer. Goods not available in the local market can be purchased through post. Buyers can arrange for the payment when the goods are delivered to them by mail.

3. Wider market:

A mail order house can sell goods far and wide. The whole world where postal facilities are available is the market.

4. Small investment:

Limited amount of capital is required to establish and run mail order business. A small office is sufficient. There is no need to keep large stock of goods. Business can be started anywhere.

5. No bad debts:

Prices of goods are collected by the post office before delivery to the customer. Therefore, there is no risk of bad debts.

6. Elimination of middlemen:

A manufacturer or wholesaler can establish direct contact with consumers. The profit of middlemen can be eliminated.