Explain the usefulness of mail order houses. What types of products are generally handled by them? Specify?
Explain the usefulness of mail order houses. What types of products are generally handled by them? Specify?
Mail-order houses are trading units that use the mail for merchandising their products. These houses inform the customers about the features and prices of products, terms of payment, etc., by placing advertisements in newspapers and magazines or by mailing circulars or price lists to customers.
The following are some of the features of mail-order houses:
(a) Wide geographical reach: As goods are sent via mail, the sellers are able to pass on information about their merchandise to customers spread all over the country.
(b) Customer convenience: Mail-order houses deliver goods at the doorstep of the customers, providing their customers convenience in terms of time and effort in making purchases.
(c) Reduced costs due to elimination of middlemen: Mail-order houses eliminate the role of middlemen as they deal with consumers directly. This results in a substantial reduction in cost to consumers.
(d) Limited capital requirement: The amount of capital required to start mail-order houses is usually low. This is because they do not require large buildings to stock or showcase their goods. Thus, their overall capital requirement is limited to the extent of their mailing operations.
Mail-order houses generally deal in goods that are non-perishable and easily transferable. They do not trade in perishable goods, bulky goods and goods that cannot be easily handled. This is because they deliver products through postal services. Mail-order houses prefer to trade in the following types of goods.
(a) Goods that are easily gradable and standardised
(b) Those involving low transportation cost
(c) Those having a high demand in the market
(d) Those that are readily available in bulk quantities throughout the year
(e) Those that involve the least competition in the market
(f) Those that are simple to describe
Mail-order houses are trading units that use the mail for merchandising their products. These houses inform the customers about the features and prices of products, terms of payment, etc., by placing advertisements in newspapers and magazines or by mailing circulars or price lists to customers.
The following are some of the features of mail-order houses:
(a) Wide geographical reach: As goods are sent via mail, the sellers are able to pass on information about their merchandise to customers spread all over the country.
(b) Customer convenience: Mail-order houses deliver goods at the doorstep of the customers, providing their customers convenience in terms of time and effort in making purchases.
(c) Reduced costs due to elimination of middlemen: Mail-order houses eliminate the role of middlemen as they deal with consumers directly. This results in a substantial reduction in cost to consumers.
(d) Limited capital requirement: The amount of capital required to start mail-order houses is usually low. This is because they do not require large buildings to stock or showcase their goods. Thus, their overall capital requirement is limited to the extent of their mailing operations.
Mail-order houses generally deal in goods that are non-perishable and easily transferable. They do not trade in perishable goods, bulky goods and goods that cannot be easily handled. This is because they deliver products through postal services. Mail-order houses prefer to trade in the following types of goods.
(a) Goods that are easily gradable and standardised
(b) Those involving low transportation cost
(c) Those having a high demand in the market
(d) Those that are readily available in bulk quantities throughout the year
(e) Those that involve the least competition in the market
(f) Those that are simple to describe
