The retail outlets which sell their products through mail are referred to as mail order houses. This type of trading involves no personal contact between the customer and the seller. The trader contacts the customer through advertisement in newspapers or magazines, circulars, catalogues and price list is sent to them by post. The advertisement gives the complete description regarding price, delivery terms, terms of payments, features, etc. of the product.
1. Lack of personal contact : Sometimes, the lack of personal contact between the buyers and the sellers results in misunderstanding and mistrust between the two.
2. No after-sales service : Both buyers and sellers are located very far away from each other and there is no personal contact between the two. Hence, it is very difficult to provide after-sales services to the buyers.
3. No credit facility: This system fails to provide credit facility to the customers. So, the customers with scarce means are not interested in this system.
4. Delayed delivery : The receipt and execution of order through mail takes a lot of time. So, there is delay in the delivery of the products.