Explain the usefulness of mail orders houses. What type of products are generally handled by them? Specify.

Mail houses are the retail outlets that sell their merchandise through the mail. There is no direct contact between the buyer and the seller. The potential customers are approached through advertisements in newspapers, magazine, catalogs, etc. The advertisement has all the information such as the price of the product, features of the product and the mode of payment. When an order is received, the items are prepared according to the specifications mentioned by the buyer under sent through the post office.

The goods that are handled by them are:


a. Graded and standardized goods.


b. Goods which can be easily transported at low cost.


c. Goods which can be described through pictures.


d. Readily available goods in large quantity.


e. Involve the least possible competition in the market.


f. Have a good level of demand.


The usefulness of the mail order is explained below:


a. Mail order to know it required a lot of expenditure on any infrastructure facilities as a building. It can be started with a low amount of capital.


b. The concept of the middleman is completely eliminated here. It helps to generate a lot of savings to both the buyers and sellers.


c. It has a wide reach. The goods can be sent to all the places with Postal Services.


d. The mail-order houses do not extend credit facilities to the customers. The issue of the bad debt or non-payment of cash by the customer.


e. The goods are delivered at the doorstep of the customers. There is a lot of convenience to the customers in buying the products.


1