(a) What is mail order business? (b) list and explain six trends in retailing

Answer Details

(a) What is mail order business?

Mail order business is a form of retail trade in which goods are sold and delivered to customers through the post office or courier without the buyer and seller meeting face to face. Customers select goods from catalogues, price lists or advertisements, place their orders by post or online, and the goods are then despatched to them. It requires no shop or showroom and is useful for reaching customers in distant and rural areas.

(b) Six trends in retailing

1. Growth of self-service: More stores now allow customers to pick goods from open shelves and pay at a checkout, reducing the number of sales assistants needed.
2. Rise of e-commerce (online retailing): Goods are increasingly bought and sold over the internet, with delivery to the customer's home.
3. Branch/chain-store expansion: Retailers open many branches under one name in different locations, buying in bulk and selling at competitive prices.
4. Use of electronic payment methods: Retailers now accept cards, mobile money and other cashless means of payment instead of only cash.
5. Increased use of automatic vending machines: Goods such as drinks and snacks are sold automatically through coin- or card-operated machines.
6. Emergence of large-scale outlets (supermarkets, hypermarkets and shopping malls): Retailing is moving towards large stores that sell a very wide range of goods under one roof.

(Growth of self-branding/own-label goods and after-sales services such as home delivery are also acceptable.)