Mail Order Houses are retail businesses that sell products directly to consumers through catalogues, brochures, or online platforms, without the need for a physical storefront. Customers place orders via mail, telephone, or the internet, and the products are shipped directly to their address. This retailing concept offers convenience by allowing shoppers to browse a wide range of products from the comfort of their home and avoid visiting physical stores. Originally reliant on printed catalogues, modern mail order houses have evolved into online retailers, offering diverse goods and services, and catering to both urban and remote areas.
Features of Mail Order Houses Retailing:
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Catalog or Online-Based Sales:
The primary feature of Mail Order Houses is their reliance on catalogs or online platforms to showcase products. Historically, printed catalogs were mailed to customers, allowing them to browse through product listings, descriptions, and prices. Today, this has transitioned to online websites, where customers can view and select items conveniently.
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Direct-to-Consumer Model:
Mail Order Houses operate on a direct-to-consumer model, eliminating the need for intermediaries or physical retail outlets. This means customers order directly from the retailer by mailing their order forms, calling, or using online shopping portals. The retailer then ships the products directly to the customer’s address.
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Absence of Physical Storefronts:
A defining feature is the absence of a traditional brick-and-mortar store. Mail Order Houses conduct their operations remotely, saving on overhead costs such as rent, utilities, and store maintenance. This enables them to potentially offer products at competitive prices.
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Wide Geographic Reach:
One of the advantages of Mail Order Houses is their ability to reach customers in distant or rural locations, where physical stores may not be easily accessible. This expands their customer base significantly compared to traditional retailers, especially before the rise of e-commerce.
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Product Variety:
Mail Order Houses often offer a wide variety of products, ranging from clothing and household goods to electronics and specialized items. Due to the absence of space constraints like physical stores, they can list a broader inventory in their catalogs or online platforms.
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Order Placement via Multiple Channels:
Customers can place orders through multiple channels such as mail, telephone, fax, or the internet. This flexibility is one of the reasons for the concept’s enduring appeal, particularly among those who prefer not to visit physical stores.
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Delayed Gratification:
Unlike shopping in physical stores, customers must wait for their products to be delivered. While modern logistics have improved delivery times, there is still a time lag between order placement and receipt of goods.
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Return and Exchange Policies:
Mail Order Houses typically have well-defined return and exchange policies since customers can’t inspect the products before purchasing. This provides customers with some assurance and protection in case the product does not meet their expectations.
Example of Mail Order Houses Retailing:
India:
- VLE Bazaar: Part of the government’s Common Service Centres (CSC) initiative, VLE Bazaar is an e-commerce platform offering a wide range of products to rural and semi-urban customers. It follows a mail order and online sales model.
- Saregama India: Known for its music, Saregama allows customers to order products like music CDs, DVDs, and its Carvaan music player directly through mail order or online.
- Naaptol: Naaptol started as a mail-order catalog business and now operates as a television and online shopping platform, offering various consumer goods across India.
USA:
- Sears: Once a dominant mail-order retailer, Sears began with a catalog that offered a wide range of products, from clothing to household goods. Though it has reduced its operations, it set the standard for mail order retailing.
- LL Bean: A well-known retailer in the USA, LL Bean began as a catalog company offering outdoor gear. It continues to offer products via mail order alongside its online and in-store sales.
- Lands’ End: Known for its apparel and home products, Lands’ End initially grew as a mail-order company and still operates using catalogs, alongside its online and retail presence.