Define Mail Order retailing and explain its advantages and limitations.

Advantages of mail order retailing are as follows :

1. Limited capital : Mail order business can be started with limited capital as there is very little need for investment on shops, displays and large stocks.

2. Middlemen avoided : As middlemen can be avoided under the manufacturing type of mail order business, the cost of marketing is minimized.

3. Cash basis : As the goods are sold on cash, there is no risk of bad debts.

4. Wide scope : Goods can be supplied through mail even to far off places throughout the country. This opportunity widens the scope of the business greatly.

5. Convenience : This form of business can be very convenient for the consumers as goods are delivered at their place by post, and they are not to waste time and effort in going to shops.

6. Handle from any place : This type of business can be handled from any place where the postal services are available.

7. Minimum overhead expenses : As the

overhead expense are minimum in this type of business, it is possible to fix prices at a reasonable level so as to attract large number of customers.

Limitations are as follows :

1. No personal inspection : The buyers do not have the opportunity of personally inspecting the goods before buying.

2. No personal contact : Because of lack of personal contact many customers do not have confidence in this type of trading.

3. Delay in delivery : It is not possible for the customers to have immediate delivery of the goods. They have to bear with the delay in delivery through mail.

4. Postal delay : There is great dependence on the postal department in this type of business and chances of undue delay or pilferage of goods in transit is always possible.

5. Limited scope : There is limited scope for this type of business in places which are not well connected through postal services or where people are illiterate.