Mail order
Mail order is the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote methods such as:
See also: Card not present transaction
Then, the products are delivered to the customer. The products are usually delivered directly to an address supplied by the customer, such as a home address, but occasionally the orders are delivered to a nearby retail location for the customer to pick up. Some merchants also allow the goods to be shipped directly to a third party consumer, which is an effective way to send a gift to an out-of-town recipient. Some merchants delivered the goods directly to the customer via their travelling agents.
A mail order catalogue is a publication containing a list of general merchandise from a company. Companies who publish and operate mail order catalogues are referred to as cataloguers within the industry. Cataloguers buy or manufacture goods then market those goods to prospects (prospective customers). Cataloguers may "rent" names from list brokers or cooperative databases. The catalogue itself is published in a similar fashion as any magazine publication and distributed through a variety of means, usually via a postal service and the internet.
Sometimes supermarket products do mail order promotions, whereby people can send in the UPC plus shipping and handling to get a product made especially for the company.
History[edit]
Early catalogues[edit]
In 1498, the publisher Aldus Manutius of Venice printed a catalogue of the books he was printing. In 1667, the English gardener William Lucas published a seed catalogue, which he mailed to his customers to inform them of his prices. Catalogues spread to British America, where Benjamin Franklin is believed to have been the first cataloguer. In 1744 he produced a catalogue of scientific and academic books.[2] In 1833, Antonio Fattorini started a mail order watch club in Bradford, which would eventually transform into Empire Stores.[3]
Taxes[edit]
The objective of the direct marketing industry is to alter the sales distribution chain, in other words [bypass] the wholesaler and the retailer and go directly to the customer, reducing therefore tariffs and taxes.[48]
In the European Union, a "VAT union" is in force: the merchant selling to a buyer in a different EU member country adds the VAT of his own country to the price, and the buyer pays no additional tax. A buyer for resale may deduct that VAT, just as with purchases made within their own country.
Up until June 21, 2018, mail order retailers in the United States operated with the advantage of not being required to collect state sales tax, unless the retailer's business had a physical presence in the customer's state. Instead, most states required the resident purchaser to pay the applicable taxes. In 2018, after the United States Supreme Court heard the case of South Dakota v. Wayfair, Inc. and a five-justice majority overturned Quill Corp. v. North Dakota, ruling that the physical presence rule decided in Quill was "unsound and incorrect" in the current age of Internet services, American e-commerce and mail order retailers began collecting state sales tax on orders.