Mail order business firms - SS1 Commerce Lesson Note

Mail order business firms are companies that sell products or services through catalogs or other printed materials, which customers can order by mail or phone. In recent years, the concept of mail order has expanded to include online ordering as well. These catalogs showcase a wide range of products or services that customers can purchase remotely without visiting a physical store. Customers place their orders by mail, phone, or online, and the products are delivered to their doorstep.

Features of Mail order business firms

·         The main feature of mail order business firms is the distance between the buyer and seller.

·         Customers can browse through catalogs or online platforms, select the desired items, and complete the purchase without leaving their homes.

·         The firms handle order processing, inventory management, and shipping logistics to ensure timely delivery of products to customers.

Advantages of Mail order business firms

·         Convenience: Mail order allows customers to shop from the comfort of their own homes, saving time and effort compared to visiting physical stores.

·         Wide product selection: Mail order firms often offer a vast range of products or services in their catalogs, giving customers access to a variety of options that may not be available locally.

·         Accessibility: Mail order businesses make it possible for people in remote areas to access goods and services that might not be easily available to them otherwise.

·         Comparative shopping: Customers can compare prices, features, and reviews of products from different mail order firms before making a purchase decision.

Disadvantages of Mail order business firms

·         Delayed gratification: Since customers have to wait for their orders to be shipped, the fulfillment process can take time, and the immediate satisfaction of purchasing in a physical store may be lost.

·         Lack of physical inspection: Customers cannot physically examine the products before purchasing, relying solely on descriptions and images provided in catalogs or online.

·         Shipping costs: Depending on the size and weight of the items, shipping costs can add extra expenses to the overall purchase, making some products more expensive than buying locally.

·         Returns and exchanges: Returning or exchanging products in mail order businesses can be more complicated and time-consuming compared to returning items to a local store.