Theory question 104
Retail TradeCommerce 2 (essay)
(a) State six distinguishing features of a mail order business
(b) Give four disadvantages of a mail order business
Show the model answer
(a) Any six: goods are advertised by catalogues, newspapers or magazines; orders are sent by post (or phone/internet); goods are delivered by post or courier; no shop or personal contact with customers; payment usually in advance or cash on delivery; usually sells standardised branded goods; reaches customers over a wide area; low overhead costs (no expensive shop); goods may be returned if unsatisfactory.
(b) Any four: customers cannot see or examine goods before buying; delay in delivery; payment in advance with risk of fraud; goods may be damaged or lost in transit; no credit or after-sales personal service; high advertising and postage costs; unsuitable for perishable or bulky goods; depends on efficient postal services and literate customers.
Mail order means buying and selling by post.