How to Start a Mail Order Business

With the increase in buying capacity of the average Indian, mail order business in India is slowly become a major means of trading. One mail order business is always different from the other. However all mail order businesses have some elements in common. When you set up a business you need to take care of all these common elements. Some points on how to start a mail order business is discussed below:

Building a Successful Mail Order Business/ Mail Order Business Plan
Company Name & Telephone

• Always go for a short and catchy name which can be remembered easily.
• If local laws require you my have to register the name
• Always use a name that describes your chief product.
• All stationery should carry your telephone number. It gives the customer a lot of confidence.

Basic Supplies

• Start small with as little expense as possible. As you build profits, you can buy more and better items.
• Have a good computer, business stationery which includes mailing labels, business envelopes, and return envelopes. All items should have your business name and address printed on them.

Choose the Product

• Choose products that people require on an ongoing basis.
• Accept products of good quality only. Have faith in the product you sell
• Promote a line of merchandise. This is vital to mail order success.
• Your marketing becomes easier if your products become specialized

Pricing

• Buy at a price that allows you an adequate mark-up including all your miscellaneous expenses
• The price you charge must be fair and in line with your competition.
• You must not look for a big profit on each and every item. Actual profit comes from follow-up orders.

Advertising Expense
Advertising is very important to your business. However you need to take the following into account:

• Begin with classified ads. If you are successful, you can switch to display ads.
• Test an ad by running it in different publications. Choose to advertise in publications that advertise similar products.
• For fixed customer base, buy larger space.
• Advertise special interest products in special interest quality publications.

Advertising Copy

• Write tight copy just as you speak. You are generally appealing to a mass market.
• Be sincere and don’t make unreasonable claims, but remember that you are selling.
• Convince the reader that you are reliable and trustworthy
• Provide simple specific and error free instruction.
• Watch where your competitors are advertising

Responding to Inquiries

• Every inquiry through an ad should be answered within 24 hours.
• Every response should be accompanied with a circular, mini-brochure, an order form, a return envelope etc.

Customer Payments, Refunds and Complaints

• Accept money orders and checks
• To stay in competition accept Visa and MasterCard – for payment. It increases sales.
• Make refunds on overpayments quickly
• Offer a 30 day or 90 day money back guarantee
• Avoid offering money back guarantees on cheap items

Follow Up

• Follow-up is very important to the business. When handled properly you can earn a lot of profit from this section
• Send out regular mailings to your customers. This will ensure orders to flow.

Record Keeping

• Always maintain records.
• Records will tell you what is going on in your business. It will help you calculate your revenues and your expenses.
• Keep records of advertising expenses. This will help you evaluate your advertising on an ongoing basis.

Mailing Lists

• Do no direct mailings, except to your own list of customers and inquirers.
• Stay away from inexpensive mailing lists
• Avoid mailing lists forwarded unrealistic claims.
• Trust a list broker who would see your product before he will rent you a list. Lists are rented for one time use.

Drop-Shipments

• When you start your business you can go for drop-shipping arrangements
• Use drop-shipments for slower products. Once your business flourishes carry an inventory of everything you sell.
• While arrangements are made, send your customer a note about the date when he can expect it. Send some promotional material with your letter or note.

If you follow the above tips, mail order business can help you become a very successful businessman in the long run.