Advantages and limitations of Mail Order Business
Advantages of Mail Order Business
This system offers the following advantages:
i. The customers can easily purchase the goods while sitting at their place. It saves time
and effort of the customers.
ii. Mail order business can be started with small amount of capital, as the businessman
does not require to hold large stock of goods.
iii. Generally it assures the customers that they can get back their money if they are not
satisfied with the product. This creates confidence in the minds of the customer.
iv. Mail order business is done on cash basis. There is practically no risk of bad debts.
v. It serves a wide market with a large number of customers.
Limitations Mail Order Business
The following are the main limitations of mail order business:
i. Credit facility is not available to customers.
ii. This type of business is not suitable for illiterates.
iii. The buyers do not have any option to check the goods before making payment.
iv. The place of the buyer should be connected through postal services.
v. This system requires wide spread advertising.