Mail order businesses have several advantages: they require limited capital; eliminate middlemen, saving buyers and sellers; and do not extend credit so there is no risk of bad debt. However, they also have disadvantages: they lack personal contact and after sales service; delivery is delayed; no credit is provided; promotion costs are high; and they rely on efficient postal services.

5. ADVANTAGES……
 Limited capital requirements: Mail order
business requires low amount of capital.
 Elimination of middle men: Mail order
business eliminates middlemen which
results in savings to both buyers and
sellers.
 Absence of bad debt: As mail order houses
do not extend credit to customers there is
absence of bad debt.

6.  Wide reach: As goods can be send to all
places through mail it has wide reach.
 Convenience: As goods are delivered at the
door stop of customers it results in
convenience.
 Minimum over expenses: As these business
do not offer facilities to customers it does
not incurr any expense.

7.  Lack of personal contact: This kind of
business do not offer any personal contact
between buyer and seller.
 High promotion cost: As this business rely
on advertisement and other methods of
promotion it involves high cost.
 No after sales service: This kind of business
do not offer any after sales service.
 Delayed delivery: The delivery of goods is
always delayed.

8.  No credit facilities: Mail order houses do
not provide credit facilities to buyers.
 Possibility of abuse: There is chance of
abuse on the basis of false advertisements.
 High dependence on postal sevices:This
form of business depends on efficient
postal services.