1. Lack of personal contact:
There is no face to face contact between the seller and the customer. It is also difficult to determine the causes of failure to make sales and to procure orders.
2. Absence of prior inspection:
Customers do not get the opportunity to inspect and choose the goods before purchase.
3. No credit:
Goods are sold on cash basis and this may affect sales.
4. Limited scope:
Mail order business is not possible in areas where most of the people are illiterate. It is possible only in case of certain articles. Heavy, bulky, and perishable goods cannot be sold profitably through post.
Mail order business is not possible in case of goods requiring demonstration and in places not having postal services.
5. Costly advertising:
A large amount is spent on advertising. Many advertisements may be wasteful.
6. Delay and Expense:
Considerable time is involved in supply of goods to customers. Postal charges increase the costs and make goods dearer to consumers. There is risk of loss and damage in the post. Success of business is greatly dependent on efficiency of postal department.
7. Scope for misuse:
Dishonest traders may deceive the customers.