DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer Practice
Institution : Government polytechnic
for women, Nandigama.
Year/ semestar : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Advantages and disadvantages of
Mail order business.

CCP104.91 1
Objectives

After completion of period, you would

be able to know the:
 Advantages of mail order business
 Disadvantages of mail order business.

CCP104.91 2
Recap

We have so far discussed above:

- Mail order business
- Features of mail order business
- Procedure for conduct of mail order business

CCP104.91 3
Advantages of Mail Order Business
 Customer gets goods without moving out
 Quality is also ensured in this business

 If customer is not satisfied with the product

since goods are guaranteed, the seller takes
them back

 Low price due to non-existence of middlemen

CCP104.91 4
Advantages of Mail Order Business

 Low operating costs

 Does not requires office/show-room

 Wide variety of Merchandise

 Need not be a local Market

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Advantages of Mail Order Business

 It also can be covered distant markets

which enhances the sales of the firm

 Small capital

 Limited Stocks

 Low Risk

 Flexibility of customer’s List

CCP104.91 6
Disadvantages of Mail Order Business

 The customers cannot personally inspect

the goods

 Customers have to wait for several days

 There is a risk of loss due to damage of

goods in transit

CCP104.91 7
Disadvantages of Mail Order Business

 Not useful in case of bulky goods

 Illiterates and Insufficient Postal services

hamper the business

 Other services not available

 Heavy expenditure on promotional aspects

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Disadvantages of Mail Order Business

 Special Packing increases the

expenditure

 Possibility of checking the customers

CCP104.91 9
Summary

 Advantages of Mail Order Business:

a) Convenience b) Quality c) Low Price d) Low
operating costs e) Wide variety f) Distant Markets
g) Less capital h) Flexibility

 Disadvantage of Mail Order Business:

a) Lack of personal contacts b) Delay in getting
goods c) damage of goods d) Limited scope e)
Illiteracy f) Lack of services g) High promotional
expenditure h) High packaging expenses i) Scope for
fraud

CCP104.91 10
Frequently Asked Questions

1. What are the advantages of Mail Order

Business?

3. What are the disadvantages of Mail Order

Business?

5. Briefly explain six advantage and

disadvantages of Mail Order business.

CCP104.91 11