Sponsor Area

Internal Trade

Question
CBSEENBS11004478

What are types of Mail Order Business ?

Solution
The mail order business can be categorized under :

1. Manufacturing type mail order business : The manufacturer of goods himself adopts the policy of selling goods by post for the simple reason that he wants to eliminate the middlemen and minimize the cost of sales. This will also maintain the supply of original goods.

2. Departmental type mail order business : Departmental stores in addition to selling goods through their stores may supply goods by post directly to the customers on demand. This will increase the sales and satisfy the need of distant customers.

3. Middlemen type mail order business : It is the common type of mail order business, where the seller is neither a manufacturing concern nor a departmental stores. The seller is not the producer/ manufacturer of goods. He makes advertisement, receives orders and execute the order by making purchases of the product from the market.