mail order houses

2. MAIL ORDER HOUSES

3. MEANING
Mail order houses are the retail outlets that sell
their merchandise through mail.

4. FEATURES
 there is no direct personal contact between
buyers and the sellers.
 this type of business is not suitable for all
type of products, example perishable items.
Goods are supplied to the customers without
the help of middlemen.
Customers do not have to go to the retailer to
collect the product

5. PROCEDURE FOR MAIL ORDER HOUSES
PREPARATION
OF MAILING
LIST
APPROACH TO
CUSTOMERS
RECEIVING OF
ORDERS
DISPATCH OF
GOODS
MODE OF
PAYMENT

6. PROCEDURE
1. PREPARATION OF THE MAILING LIST
The first step is the preparation of mailing
list of potential customers from telephone
directories, list of members of club or trade
association.

7. 2.APPROACH TO CUSTOMERS
sellers approach customers through
advertisement in newspapers, magazines,
circulars etc. All the relevant information
about the product such as
price,features,delivery terms,terms of
payment are informed.

8. 3. RECEIVING OF ORDERS
Customers send their orders by post. orders
received are entered in the order received
book.
4. DISPATCH OF GOODS
Goods are verified to ensure that they meet the
buyers specifications. they are properly
packed and delivered to post office.

9. 5. MODE OF PAYMENT
Different alternatives for receiving
payments
Making full payment
Value payable post: goods may be sent by the
VPP in which goods are sent through post and
are delivered to the customers only when the
full payament is made.
Payment through bank:goods may be sent
through a bank which is instructed to deliver
the goods only when the customer makes full
payment

10. SUITABILITY
• Goods should not be perishable
• Goods should be graded and standardised.
• Goods should be transported at low cost
• Goods should have ready demand in the
market
• Goods should be available in large quantity
Should be graded and
standardised
Transported at low cost
Have ready demand in the
market
Available in large quantity
Goods should
not be
perishable

11. ASSIGNMENT
Write an assignment on mail order houses.