Mail order businesses or retailers are retail establishments that sell their goods and merchandise through postal services.

A mail order business have many characteristics, including non-store retailing, highly dependent on promotion, reduced bad debt and absence of after-sale services.

1. Non-store retailing: Mail order businesses do not require stores to operate. Mail order business sells their goods through the mail.

2. Relies on promotion: Because mail order companies lack physical stores, they must spend a lot of money advertising on print and digital advertising.

All pertinent information about the product, including the price and description, will be provided in the adverts.

3. Cost of operation: Cost of running a mail order business is lower because it doesn't have to pay rent for a store, employ salespeople, or furnish it.

However, promotional costs make up a large percentage of the cost of operation of mail-order businesses.

4. Means of payment: Mail order companies accept payments in a variety of ways for their products.

First, a mail-order retailer has the option of receiving all or part of the purchase price in advance.

He is also allowed to sell items via Value Payable Post (VPP), where the consumer must pay in full before the post office will deliver the goods.

5. No bad debt: In a mail order business, bad debts are minimized, if not completely eliminated.

This is due to the fact that mail-order companies would only delivered goods to consumers after receiving full payment for the goods and services.

6. Suitability: Mail order business is suitable/unsuitable for some kind of goods.

Mail-order businesses can sell non-perishable items like clothing, jewellery, and phones.

A mail-order busines cannot sell perishable items like tomatoes.

Additionally, due to the common delay in postal delivery of products, mail order shops cannot sell items used on a daily basis.

7. Ability to reach large customers: Since mail order companies frequently place advertisements in print media like newspapers and magazines, they have the ability to attract a large customer base.

8. Convenience and home delivery: The mode of operation of mail order retailing is to deliver goods through the post.

Therefore, goods are delivered to the house or any other place specified by the buyer.

The consumer can order and receive goods from the comfort of his house.

9. Absence of after-sales services: It is very unlikely that the seller will be able to provide after-sales services to the buyer in mail order.

This is because the buyer and seller are usually located miles apart, making it inconvenient for the seller to travel to the buyer's home and provide after-sale service.

10. High reliance on postal services: A mail order business use the post office to conduct their business 

As a result, the existence of functional and effective postal services is crucial to success of a mail order business

A mail order business may suffer or if the postal infrastructure in the nation where it operates is weak.

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