Posted in Marketing and Strategy Terms, Total Reads: 416
Definition: Mail Order Company
Mail order companies are the companies which do not sell face to face. It is a new system of buying and selling goods. The consumer chooses the goods from the company’s websites and catalogues and orders for the supply of goods through mail, telephone or internet. The company sends the ordered merchandise by post to the consumer. Mail order companies are also described as Shopping by Post. The orders are typically delivered to the consumer but may be occasionally delivered to a nearby retail location for the consumer to pick up. Some merchants also allow shipping to a third party consumer which is an effective way to send gifts.
The sellers contact with the buyers through various methods. Some of them are:
• The seller advertises in different forms of media e.g. newspaper, internet so that the prospective buyers can ask for quotation or price list from the seller. They can also give orders online .
• Mail order companies send personalised letters and catalogues mailed to the highly specialized address lists sold by mailing research firms. These mails are called junk mails
There are various types of mail order houses like general mail order houses, producer’s mail order house, wholesaler’s mail order house, specialty mail order house, middlemen mail order house etc. Other than bulky goods and industrial equipment , most of the items are usually sold through mail order at prices lower than the retail price.
The main advantages of mail order companies are:
• Less capital requirement
• Risk factor is less
• Beneficial for consumers in remote locations
• This type of business does not facilitate credit sale so there is no fear of bad debt