BUSINESS, a retail commercial enterprise carried on entirely or almost entirely by mail. Its customers, from illustrated catalogues which are sent to them by mail, order gen eral merchandise of every description and receive their merchan dise by parcel post, express or freight from either central storage or shipping points or direct from the factory, permitting in many instances appreciable savings through reduction in transportation and handling costs, which, in turn, are passed along to the benefit of the customers in the form of lower prices.
American mail-order business received its initial impulse from a natural desire on the part of the average individual to buy dependable merchandise at below prevailing retail prices. It took concrete form about 1872 in the organization of farmer grange alliances and similar associations for the purpose of collective buying. The movement was promptly capitalized by the pioneers in the industry, who sought to attract sales from printed lists of merchandise instead of selling over the counter. The complete success of the mail-order business is due to the fact that it not only maintains as its creed lower prices and better quality, but strictly honest dealing and a broad guarantee of satisfaction.
In early days distribution of merchandise was uncertain and was accomplished almost entirely through jobbing houses or manufacturers' representatives, who sold to the retail dealer, who, in turn, sold to the user. The mail-order business cut through those slow and expensive methods of distribution. It eliminated the middleman, with his added profit and expense ; saved that amount, and thus materially lowered the cost of merchandise to its customers.
As time went on, improved manufacturing methods produced better goods at steadily lowering costs; transportation facilities grew more efficient ; the parcel post was established ; and scien tifically worked out systems made it easier every year to handle, pack and ship vast quantities of merchandise with precision and dispatch and at a minimum of expenditure. Every advance of
this nature lowered retail selling prices still more. Then the mail order business began to come into its own, its pronounced growth dating from about the beginning of the 20th century.
The early years of the business were not marked by that fine regard for the ethics of the successful commercial enterprise of to-day. Not infrequently overstatement and exaggeration, if not downright misrepresentation, characterized the descriptions in the catalogue. But the conviction gradually grew that misrepresenta tion was not only immoral, but unprofitable. The mail-order house began to censor its catalogue descriptions with more care and with a keener eye for the truth. To that fact ; to the outstanding advantages of this method of shopping, especially to people in rural districts ; to its guarantee of satisfaction strictly adhered to and to the low prices and complete assortments offered, the mail order house may attribute its remarkable growth.
Reasons for Success.—The mail-order business has materially reduced the cost of living for millions of people; has been one of the biggest factors in establishing the now generally accepted principle of one price to all , has become so thoroughly stabilized that the catalogues of the larger houses of to-day are to a great extent the merchandise price standards of the country. Not only do the successful mail-order houses strive for truth in their adver tising and cataloguing, but they exert themselves to a considerable extent to safeguard their customers even against themselves. They refuse to catalogue and sell merchandise which is harmful or against public interest. For instance patent medicines, many of which are injurious, are no longer advertised, only those medi cines being offered which are officially approved by leading drug and medical associations. Furthermore, late years have seen a marked increase in laboratory tests to assure serviceability and at least minimum standards of quality in merchandise advertised.