Mail order business ppt

advantages and disadvantages of mail order houses

1. ADVANTAGES AND DISADVANTAGES OF MAIL ORDER HOUSES

2. ADVANTAGES…… Limited capital requirements : Mail order business requires low amount of capital. Elimination of middle men : Mail order business eliminates middlemen which results in savings to both buyers and sellers. Absence of bad debt : As mail order houses do not extend credit to customers there is absence of bad debt.

3. Wide reach : As goods can be send to all places through mail it has wide reach. Convenience : As goods are delivered at the door stop of customers it results in convenience. Minimum over expenses : As these business do not offer facilities to customers it does not incurr any expense.

4. Lack of personal contact : This kind of business do not offer any personal contact between buyer and seller. High promotion cost : As this business rely on advertisement and other methods of promotion it involves high cost. No after sales service : This kind of business do not offer any after sales service. Delayed delivery : The delivery of goods is always delayed. DISADVANTAGES….

5. No credit facilities : Mail order houses do not provide credit facilities to buyers. Possibility of abuse : There is chance of abuse on the basis of false advertisements. High dependence on postal sevices: This form of business depends on efficient postal services.

6. Write a short note on merits and demerits of mail order houses.