Explain the merits of Mail Order Houses

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Solution

Merits ot mail-order house :

(a) Limited Capital Requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities.

(b) Elimination of middlemen: Goods are ordered by consumers directly to the mail-order houses, eliminating middlemen. This results in a lot of savings both to buyers as well as sellers.

(c) No bad debts: Since credit facilities are not extended to customers, so there are no chances of bad debts.

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