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For example, goods that is perishable in nature or is bulky and cannot be easily handled,

is not recommended for mail-house trading.

Only the goods that can be

(i) Graded and standardized,
(ii) Easily transported at low cost,

(iii) Have ready demand in the market,

(iv) Are available in large quantity throughout the year,
(v) Involve least possible competition in the market and

(vi) Can be described through pictures etc., are suitable for this type of trading.

Another important point in this regard is that mail house business

cannot be successfully carried out unless education is wide spread. It is so because only the

literate people can be reached through advertisements and other forms of written
communication.

Advantages

(i) Limited capital requirement: Mail order business does not require heavy expenditure on

building and other infrastructural facilities. Therefore, it can be started with relatively low

amount of capital.
(ii) Elimination of middle men: The biggest advantage of mail-order business from the point of

view of consumers is that unnecessary middlemen between the buyers and sellers are

eliminated. This may result in lot of savings both to the buyers as well as to the sellers.

(iii) Absence of bad debt: Since the mail order houses do not extend credit facilities to the

customers, there are no chances of any bad debt on account of non payment of cash by the
customers.

(iv)Wide reach: Under this system the goods can be sent to all the places having postal services.

This opens wide scope for business as a large number of people throughout the country can be
served through mail.

(v) Convenience: Under this system goods are delivered at the doorstep of the customers. This

results in great convenience to the customers in buying these products.