Advantages and Limitations of Mail Order Business, Advantages and Limitations of Tele Shopping

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Goods possessing following qualities are usually suitable for this kind of business:

  • Light weight goods and the ones that occupy less space. Bulky goods cannot be sold by this way.

  • Durable and non-perishable goods.

  • Goods having high demand in the market.

  • Goods having delivery charges relatively lower than their price.

  • Goods that are easy to handle.

Advantages of Mail Order Business

  • The customers can easily purchase the goods while sitting at their place. It saves time and effort of the customers.

  • Mail order business can be started with small amount of capital, as the businessman does not require to hold large stock of goods.

  • Generally, it assures the customers that they can get back their money if they are not satisfied with the product. This creates confidence in the minds of the customers.

  • Mail order business is done on cash basis. There is practically no risk of bad debts.

  • It serves a wide market with a large number of customers.

Limitations Mail Order Business

  • Credit facility is not available to customers.

  • This type of business is not suitable for illiterates.

  • The buyers do not have any option to check the goods before making payment.

  • The place of the buyer should be connected through postal services.

  • This system requires wide spread advertising.

Tele Shopping

Today telephone has become an indispensable means of communication in business. They contact the prospective buyers through telephone and persuade them to buy their products. In some cases, they advertise their product on television or other media. They clearly explain the features and also make live demonstration of the products. The price and code number (if any) of the products and the telephone number of the sellers are displayed on the screen. As a customer, you are supposed to dial the telephone number and give your order. They will deliver the goods at the desired place on receipt of the payment. This is tele shopping. Asian sky shop and tele-brands are the examples of those doing teleshopping business in our country.

Advantages of Tele Shopping

  • It saves time, money and effort in placing a written order to buy the goods.

  • It is a convenient method of shopping for people who are busy and do not have much time for shopping.

  • It eliminates the role of middlemen in the process of distribution.

  • Buyers can inquire about the terms and conditions of sale, mode of payment, packaging etc. from the sellers without visiting the seller’s place.

Limitations of Tele Shopping

  • Since orders are received orally on telephone, there is no record of dealings. Thus, disputes over terms and conditions of sale may be difficult to resolve.

  • No facility is available for inspection of goods offered for sale. Hence the risk of fraud and dishonesty is unavoidable.

  • The seller may provide misleading information regarding products to attract the customers.

  • Credit facility is not available to the buyers.

Sale of Goods through Automatic Vending Machine

Sale through automatic vending machine is another technique of selling goods. It provides round the-clock facility to the customers for purchase of goods. These machines are normally placed at convenient location, near railway stations, bus terminals, busy shopping centres etc. By inserting a coin or token in the automatic vending machines, you can buy certain specified goods. This system of retailing is popular in foreign countries through which chocolates, milk, ice cream, soup, newspaper, etc. are sold to a large number of customers. In India this system is not very popular.

Sale of Goods Through Automatic Vending Machine

Sale of Goods through Automatic Vending Machine

Advantages of Automatic Vending Machine

  • Operation of this machine is very simple. Even an illiterate person can operate it.

  • The buyer gets specified quality in uniform weight at a fixed price.

  • There is no risk of fraud and manipulation by the seller.

  • It helps in saving time and effort of the seller.

  • No advertisement is required.

  • The entire sale is for cash, hence there is no risk of default in payment by the buyer.

Limitations of Automatic Vending Machine

  • Initial investment in a machine is very high.

  • The machine requires regular repairs and maintenance.

  • Since the stock holding capacity of the machine is limited, it requires frequent loading of stock.

  • The coins or tokens used for this machine are required to be collected periodically.

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