Meaning of mail-order house, features, advantages, and disadvantages

 Mail order houses are refers to the retail outlets that sell their merchandise by mail. There is no direct personal contact between buyer and seller because the orders of the goods are received by post and goods are despatched by post. Most sellers approach customers through advertisements on different social sides and newspapers circulate their catalogs; send the price list by mail to consumers. All the required information about the products such as price, features, delivery terms, payment sources, and many more provide information through the advertisement. After satisfying the customers, they place the order through the post to seller and buyer gets its product by post offices and Courier. 

There are several ways of receiving payments; 1) the consumers may ask for full payment in advance; 2) the goods may be dispatched by value payable post. Under this situation, the goods are delivered through the post under the condition of cash on delivery by consumers. 3) The goods are delivered by the bank. Under this agreement, there is the risk of bad debts because goods are handed over to consumers only after making full payments. There are some important features of the mail-order houses which are following.

  • Mail house retailers do not require a large amount of capital at the beginning of the business. 
  • This type of business can be operated even without owning a shop. It can operate from home and an affordable price. There is no need for an official location for business operation. There is no requirement for a large number of inventories for business.
  • This type of business gets orders through advertisement. Mail houses need an attractive and effective advertisement for drawing the attention of consumers. 
  • This type of business is not suitable for every business such as perishable goods, heavy products, and many more. 

Advantages of mail houses 

There are several advantages offered by the mail house business. the advantages are listed below. 

Less requirement for capital 

Mail order houses do not require heavy expenditure on fixed assets and any other infrastructural facilities. This makes it easy to start a business with a low amount of capital. 

On the other hand, the mail house business is known for sopping by post. This is a new method of selling goods and services by mailing without any middle man. There is no need to maintain a salesman, large inventory, a large place for business. These things make it easy to start this type of business with a small amount of investment.

Wide reach 

In the modern area, the mail-order houses place their services all around the world. They can establish their branches in several places. This will open wide scope for business as a large number of people throughout not only the domestic nation but also other nations as well. Because businesses are adopting modern mechanical devices to handle orders and prompt supply encourages customers all over the world to buy by mail. 

Eliminate middlemen 

This is one of the biggest advantages of mail-order business from the business point of view for cutting down the cost. This is a very important factor in cutting down the cost for the consumer as well. This can result in a lot of saving both for buyers and sellers also. 

Reducing the possibility of the bad debts

The mail-order houses do not give credit facilities to consumers and most of the products sell on a case base. In this situation, there are no chances of any bad debts on account of non-payments of cash by the customers. 


Under this type of business, they ensure convenience to the consumer. The mail-order house provides goods and services at the doorstep of the consumer. Under this system, the consumer can shop from a catalog from the home. It helps in saving energy and time as well. 

Disadvantages of mail-order house  

There are several disadvantages of the mail house order such as lack of personal contact, lack in after-sales, high advertisement cost, and many more. Further, we will discuss several disadvantages of the mail-order houses, which are the following. 

Lack of personal contact 

in this type of business, there is no contact between the buyer and seller under the mail house order. There is an immense possibility of misunderstanding and mistrust between the buyer and seller. The buyers are not able to physically examine the products before buying. On the other hand, the seller cannot pay personal attention to the likes and dislikes of the buyers. The consumers are not able to clear all their doubts regarding consumers. 

Huge production cost

This is one of the biggest disadvantages of the mail-order house. They spend a heavy amount on promotion and advertisement for reaching potential buyers of their products.

No after services 

In this type of business, the buyers and sellers may be located very far from each other. In this situation, it is not possible to provide after-sale services to consumers. After-sales services play an important role in satisfying the consumers.

Delayed delivery 

This is impossible to immediate delivery goods and services to consumers in the mail order business. Generally, the post services take time to deliver goods and services to consumers.

Dependency on postal services 

The success of the mail-order house highly depends on the availability of sufficient postal services at a place of business. many towns do not have postal services yet. This makes the limited criteria for the mail-order business.       





Type of large fixed stores


The large retailers have their permanent establishment and dealing with large consumers are known as fixed large stores. These retailers are popular due to liberalization, urbanization, modernization, and several reasons. Large retailers are known for selling goods and services to consumers by using multiple distribution chains with one common reason for earning maximum profits. Mostly the consumers of cities have desires to shop from these stores such as supermarkets, multi complexes, malls, and many more. Lets us discuss the most common forms of large scales retailers that are following

Departmental stores 

A departmental store is one of the largest retail stores. It offers a wide variety of products and is classified into a well-defined department. The aim of departmental stores is satisfying possible every customer’s needs under one roof. It has a large number of departments and each one is confining its activities to one kind of product. There are several illustrations, they may have a separate department for medicines, toiletries, furniture, groceries, electronics, clothing, many types of materials in store. They can satisfy diverse market demands by providing a wide variety of goods and services. They have some important features of departmental store which are following. 

A modern area departmental store may offer several facilities such as restaurants, travel and informational bureau, restroom, telephone, and many more. These departmental stores try to provide maximum services to their high profile customers for whom price is a secondary matter. 

Mostly these stores establish in the central part of the city, which attract a large number of customers. 

The size of these stores is very large because they provide many services. Generally, they are part of large businesses and operate and manage by general managers and several departmental managers. 

Departmental stores are providing not only a retailer but also wholesaler services. They purchase directly from manufacturers and distribute different their stores. That way they resolve the middleman between the producers and customers. 

Advantages of departmental stores 

There are several advantages of retailers through departmental stores which are listed below. 

Attracting a large number of consumers 

Generally, the departmental stores are located in central places of cities. And they provide a variety of products under one roof due for this reason consumers do not need to go to different stores for different products. These are the most common reason for attracting a large number of consumers. 

Variety of choices 

Departmental stores offering a large variety of products under one roof is one of the most important advantages. They provide great convenience to consumers in buying all required products in a department. Due to this consumers do not need to run place to another place for completing their shopping. 

Attractive services 

The departmental store aims to provide maximum services to consumers. Large departments provide services like home delivery of goods, execution of telephone orders of regular customers, credit facilities, restaurants, saloons, and many more. 

Large scale operation 

The departmental stores are operating at a large scale. These stores buy goods in bulk and provide an attractive discount. In return, the consumers get their goods at lower prices. 

Disadvantages of departmental stores 

Every business has some advantages and disadvantages as well. So there are several disadvantages of departmental stores which are listed below.

Lack of customer attention 

The departmental stores are failing in establishing personal contact with the consumers. These stores are operated by employees who do not pay attention to department consumers. These stores are operating on a large scale so it is difficult to give attention to every consumer. 

Heavy operating cost 

These stores mainly focus on providing more services due to the operating cost tend to be higher side. If the operating cost is high then the price of goods will also high. That will affect the business some time badly. 

Unsustainable location

Mostly these departments are located in the central location of the city. It is not convenient the purchase goods that need immediately. 

Multiple shops

These types of stores of retailer’s shops are owned and operated by the manufacturers. Multiple shops normally deal in standardized and branded consumers products. These stores are established in different localities with similar appearances like Bata, Puma, and many more. Multiple stores are running and operating by the same organization and have had an identical merchandising strategy, with identical products and displays. Some of the common features of the multiple stores are described below. 

These shops are mostly located in populous localities. The purpose of multiple stores aims to attract a sufficient number of consumers. The idea of serving the consumers at the nearest point to their residences, rather than attracting them to central places. 

These multiple shops are centralized at the head office, from where the goods are dispatched to each store according to their requirement. This process helps in saving middle man costs. 

Every store is under the supervision of a branch manager, who is held responsible for daily activities. 

The prices of goods of all such shops are fixed and all sales in deal in cash. The daily collect cash is deposited into the local bank account on behalf of the head office. And daily reports are sent to the head office. 

The head office appoints inspectors, who are concerned with day to day activity of shops. 

Advantages of multiple shops 

These stores offer various advantages to consumers that are listed below.

These stores are selling directly to consumers. Multiple stores can eliminate the unnecessary middleman in the sale of goods and services.

There is no fear of bad debts because all sales are made on a cash basis.

If any product is not in demand in the particular locality may be transferred to another area where it is in demand. This will help in reducing the dead stock in these shops. 

The losses of one shop may be covered by profits in the other shops, this will help in reducing the total risk of an organization.     





Tourism and its impact

 Tourism is defined as the activities of the tourist peoples which used to travel and stay in different place other than their usual environment for the leisure purpose, business purpose or any other purpose. The tourists are those peoples who for their business activities or for leisure activities or any other activity travel from their usual place to other place for not more than one year.

The tourism industry is defined as the industry that is mainly associated with the travel and the tourism operations. It includes the hotels, the hospitality businesses,, businesses associated with the national as well as the local travel, transport related activities, tourist destinations, guides, and many more. 

The tourism activities are having much impact on the economy of the nation, of the local people, the environment, and the socio culture environment of the nation. The tourism activities are having both the negative as well as the positive impacts on the economy of the nation, of the local people, the environment, and the socio culture environment of the nation.

Here in this guide, we are going to discuss on the tourism and their economical, environmental, as well as the socio cultural impact on the nation and its local peoples.

Tourism and Tourism industry

The tourism is the sector that deals with the tourists and their activities. The tourism industries are the companies and the businesses that mainly deal with the tourism related activities. The primary aim of the tourism industry is to offers the goods and services to the tourist peoples and provide them good experience as the guest in their nation or the region.

Impacts of tourism

The tourism is having multiple impact on the nation and the peoples of the nation. The impacts of tourism includes the economic impact of the tourism, the environmental impact of the tourism, and the socio cultural impact of the tourism. 

The economical impact of the tourism

The tourism industry is having both the positive as well as the negative impact on the economy of the nation as well as the local people. Though it is seen that the tourism and its related activities are having positive impact on the economy of the nation, but they are also having some negative impact on the economy of the nation as well as the local peoples.

The positive impacts of the tourism on the economy of the nation and the host peoples include:

The tourism activity is reported to generate several employment options for the local peoples from the host country. The tourism activities needs the hotels, travel and transport services, guides for demonstrating the tourist destinations, hospitality, and many more in order for enhancing the experience of the tourists. These all activities requires the human power in order for enhancing the tourists’ experience and thus helps in generating several employment opportunities. It is reported that more than 11 % of the peoples from India and a significant percent of the population are employed because of the tourism industry.

The tourism activity also contributes in the growth of the GDP of the nation. When the tourist visit the tourist destination in the host country, they pay for the services. This over all results in the income of the host people offering the services, and it ultimately lead to the growth in the GDP of the nation.

Further, the tourism also helps the country in making and earning money with the help of the foreign currency exchange. When the tourist from any foreign country visit the touristic destination, it leads them to bring the foreign currency to the host nation. This helps the host country to earn money from the foreign exchange currency.        

The negative impacts of the tourism on the economy of the host nation include:

It increases the dependability of the local people for the employment options. And, any national as well as international tragedy that has impact on the tourism industry snatches the jobs from millions of people. For example, the COVID – 199 pandemic lead to the lose of job of millions of people from all around the world in the tourism industry.   

  Also, the tourism industry is leading to the closure of many traditional business options and the traditional employment options. Many of the people quit their traditional employment option and have adopted the tourism industry for the employment. This is increasing the dependability of the nation for income as well as employment on the tourism industry and the tourists from the different nations.

The impact of tourism on the environment of the host country

When it comes to environment and the tourism industry, it is generally perceived that the tourism industry is having the negative impact on the environment of the host country. Though it is true that the tourism is one of the major cause for the negative impact on the environment, but it is having some positive impact as well.

The positive impact of the tourism on the environment is that it influences the government of the nation to conserve and preserve their natural diversity and the natural assets along with planting more trees for making the environment pleasant and attractive for the tourists.  

The negative impact of the tourism on the environment includes the increased pollution. Also, for developing the infrastructure, there are more deforestation which is causing soil erosion, loss of habitats of the wild animals making them endangered, and many more.

 The impact of tourism on the socio culture of the host country

The tourism industry is having both the positive as well as the native impact on the socio culture of the host country. It helps in encouraging the preservation of the heritage and the heritage culture for attracting tourists. But over crowding is also causing the poor sanitation.   

The bottom line

So these are some impacts of the tourism on the economy, environment, and the socio culture of the host country. 




Types of Retail trade

 The business of retailers is engaged in the sales of goods and services directly to the ultimate consumers. Normally, the retailers purchase goods in bulk from the wholesalers and sell them in small quantities to directly consumers. The retailer is the final stage of the distribution chain where the goods are transferred from the hand of the producer or wholesalers to the final users. There are many different ways of selling goods. The sizes of retailers are depending on the number of sales. They may be categorized on basis of ownership then it can be sole trader, partnership, cooperative store, and many more. But mainly retailers are classified into two types.  

  1. Internal retailer Fixed retailer

Here in this guide, we will discuss both types of the retailer in detail. 

Internal retailer 

Internal retailers are trades that do not have a fixed place for business operation. They always keep moving with their goods from one place to another for sales of goods. 

Internal retailers do not have a standard place to sell products but they keep moving their stoles for delivering the product to the final consumer. There are some features of such internal retailers listed below.

  • They are small trade operators with limited resources.
  • They normally deal in daily use products and perishable items such as vegetables, fruits, toiletry products, and many more. 
  • Internal retailers emphasize convenience to the customer by making products available at the doorstep of consumers.
  • Since they do not have fix place for the operating business, they keep a limited inventory of merchandise for logistic purposes.
  • Internal retailers have limited capital resources for the operation of the business. 

There are several types of distinct internal retailers operating in India which are following.

Hawkers and peddlers 

This type of retailer is one of the oldest forms of retailer in the marketplace who do not lose their utility even during the Morden era. They carry their goods on a bicycle, hand carts, rickshaw, on the head, and many more. They keep moving place to place to sell their merchandise and constantly move around to reach maximum customers. Peddlers and hawkers generally sell non-standardized and low-quality products such as toys, carpets, fabrics, snacks and ice cream, vegetables, fruits, and many more. These hawkers do not have fixed price for their products, it fluctuates every day according to circumstances. 

Cheap jacks 

Cheap jacks are different from hawkers. They have an independent shop, but the shop is not a permanent one. They keep moving for better opportunities and potential consumers. But the frequency of changing location is comparatively low from the peddlers. 

Market traders 

Market traders are the small retailers who open their shop at a different location for fixed dates for example every Saturday, alternate days, and many more. These retailers mostly deal in one type of product like fabrics, ready-made garments, toys, crockery, and many more. The market trades target low-income groups for sell of products and deal in low prices consumers items of daily use.

Street traders 

Street traders are also known as pavement vendors. They are commonly found at a place where a huge floating population likes railway station, cinema, near famous hotels, and many more. They sell common use of products such as station items, travel items, newspapers and magazines, eatable items, and many more.

Fixed shop retailers  

This is the most commonly seen retailer in the marketplace. These are retailers who maintain permanent shops to sell their merchandise in the market. They do not change their location serve to consumers. There are some of the other characteristics of such traders. 

  • Fixed shop retailers have large resources and operate on large-scale businesses. The sizes of retailers' shops depend on the type of store. 
  • They provide a large variety of products to consumers with good customer service. 
  • These retailers have great credibility and are more trusted by consumers and manufacturers and wholesalers. 

There are many types of fixed shop retailers. 

General stores 

General stores are the most common stores found in the local market of any nation. These shops are carrying a variety of products to satisfy the day-to-day needs of the consumers near the store. The most common advantage of these stores is in terms of convenience to consumers, they offer credit facilities and home delivery to consumers.

Specialty shops 

These stores are very popular in urban areas. Rather than selling a variety of products, they focus on the sales of one line of products for example mens wear, ladies' garments, toys, school uniform, college books, and many more. These stores are commonly located in the central place of the market for attracting a large number of consumers. They can offer a variety of products to consumers for a selection of goods. 

Street stalls 

These are small retailers who set up their stalls on streets but their establishments are permanent still. They do not sift their stall very often. These types of stalls are located where the flow of traffic-heavy. They target the floating consumers and deal mainly in the cheap quality of products like hosiery products, toys, cigarettes, and local drinks, so on. 

Second-hand stores

These types of stores only deal in second-hand and used items like books, clothes, automobiles, furniture, and other household things. Such stores are known for stocking rare objects of historical value and antique items which are sold at heavy prices to people who have a special interest in such antiques.      




Reasons for growth of Scope of e-business

 E-business is a business that offers services like buying and selling, providing business services, payment of the product, marking, and many more by using the computer network. All services are connected to the internet. The range of e-commerce is very vast in comparison to traditional business. all types of businesses are using the internet for the function of business such as for financial, marketing, administration, planning, organizing and controlling, and many more. The other way of analyzing  

the scope of e-business is examining in terms of people connecting to the internet. The potential of e-commerce development is enormous because nowadays a large number of audiences are buying products from online sites like Flipkart, Amazon, mintra, and many more. There are several reasons for increasing e-commerce scope such as the heavy number of internet users, availability of variety in products, and many more. There is a huge scope of e-commerce, it includes E-trading, E-mailing, e-engineering, and many more. Here in this guide, we will discuss the scope of e-commerce. The following points are enumerated.

Business growth 

Every business wants to grow within a certain time. It seems very easy for saying, but it takes a lot of effort and dedication to see the expansion in business. Vendors and service providers can increase their revenue by creating a website of their own and listing their products on other e-commerce platforms to attract vast audiences.

In the Morden area, businesses are operating online and offline as well. The online platform allows visibility of products can generate sales as per listing optimization. It is surely a good choice when some niche products of business are promoted by some influencers. Social media like Instagram, Facebook, YouTube, and many more, have the best option of influencers for marking purposes. These will assist in increasing sales of products. Influencers have been making a good impact in the scope of e-commerce trends all over the world. The different internet platforms will help in not only boosting the revenue but also business growth. The future of e-commerce will be on a different level because they can target more audiences.

Several e-commerce stores

There are several e-commerce stores such as Amazon, Paytm, Flipkart, snapdeal, and many more. These stores have adopted their policies to operate in the market. Sellers need to agree with their terms and conditions for listing their items in almost every category they are interested in. This is a good opportunity for sellers to showcase their products to large audiences. The online platform is operating in many counties, it makes it easy for customers to shop from anywhere in the world. Online shopping sites believe in pure customer satisfaction and customers services for example transparency about the product, easy return policy, affordable offers to customers, and many more. They provide good user experiences if they continue to offer good deals and support in the customer’s online services journey.

Attractive deals 

The online platform is reported for a lot of attractive deals including offers and discounts to customers. Attractive offers are one of the reasons for increasing the scope of online business. People are attracted to shopping from offers, discounts, and special promo codes. Online sellers have several options to promote their product on Instagram and Facebook with coupon codes and target the audiences to generate additional sales. Many big brand e-commerce platforms periodically send emails and massages to all their subscribers to let them be notified about the latest offers and upcoming deals as well. This strategy is very important for getting more customers to deal pages. 

Customer services 

Customer services are important for last long consumers’ connection. If proper customer services provide to consumers then it will give a certain boost to customer satisfaction in the customers' minds. As soon as the product is dispatched to the customer, it is always recommended to the consumer to give a rating about the product and services. This helps in understanding the user experience and also helps in some required chance in product improvement with feedback. 

Covering large audiences

The best advantage of the e-commerce business is that businesses are not restricted to one place. The customers are allowed to visit your website from any corner of the world and place an order for any product and service. Covering a large number of people is important to scale up the business. If any business is restricted offline that can be the reason for losing potential consumers.

Business to business services

The scope of e-commerce has recently been extended. E-commerce provides solutions to middle man problems of business. there are several online platforms stared providing B2B services including personalized, customized prices, multiple users, flexibility, and many more. The websites of B2B is designed in such a way that retailer and small business can aim according to their requirement. They provide attractive offers, quality of product, quick delivery, and many more services.  

Brand exposure

Brand building is one of the important aspects whether for an online or offline business. E-commerce gives opportunities to sellers to advertise their not only product but also brand. If the seller has succeeded in branding their products then it will assist in attracting more customers to come back again.           


The bottom line

So these are all about the reasons for the growth of ecommerce as it offers large customer bases, easy business handling and operations, and many more. I hope this article help you with beneficial information.    



Why amazon is so successful?

 Amazon was established in 1994, and till now, it is known to be the top ecommerce company not only in USA, but in the entire world. The company is popular as best retailer Ecommerce Company. But what is the reason behind the success of the Amazon? Off course, it is its strategy that has made the Amazon one of the top successful company in USA as well as the best ecommerce company.

Now the question arises, what is the strategy of the company? Here in this guide, we will discuss about the strategy of the amazon company and will find out how this strategy is making the company reaching the top of the industry.

What is the strategy of Amazon Company?

  The primary strategy that is giving the wings to the success of the company is the Cost strategy. This ecommerce company focuses on delivering the high quality product at the most competitive price. Along with the cost strategy, the company is also utilizing mixture of many more strategies including the marketing strategy, and many more. The customer oriented strategy is also the major reason for the success of the company. The amazon company is reported to be primarily customer oriented. They are known for keeping their customers on high priority and hence attracts most of the customers. Also, the amazon company is popular for tailoring the user experiences and the customer service customized for each and every customers as per their interest based on their search. And, thus ensures that every customer is getting the tailored and best customer service.     

SWOT analysis is probably the best method for analyzing the success of the Amazon company. With the help of the SWOT analysis, it is possible to analyze the possible strengths, weaknesses, opportunities, as well as the threats to the company. Following is the elaborated SWOT analysis of the Amazon company in order for analyzing its success:

Strengths of the Amazon company

Brand Loyalty

The first strengths of the amazon company are its brand loyalty. The brand loyalty is known to be the spine for the success of the company. It received with time, and the Amazon company is having a big number of loyal customers who prefer shopping from Amazon only.

Cost Leadership

The primary strength of the Amazon company is that it offers the most competitive price. The product’s price at Amazon is reported to be less in comparison to the competitors and thus they gain competitive advantage over the others. This is also one of the major factor for the amazon company to gain success in such a small period.

Leveraging IT technology

 Though the use of IT is not quite popular in all the companies, but Amazon is among the first companies to leverage the IT platform and the IT technology in order for promoting and operating their brand. This is also one of the reason for the amazon to gain the popularity and the competitive advantages. Further, the amazon is known for using the highly advanced technology for making their platform most responsive as well as offering the best customer service.

Customer Oriented strategy

Another major reason for the success of the amazon company is their customer oriented strategy. The company is known for placing their customers on priority. With their strategy, they ensures to listen all the customers, making all the customers feel special, customize the customer service as well as user experience for each and every customers ensuring the to get the best service. This is all that attracts the customers to this ecommerce platform.

Wide product range

Another best strength of the amazon company is that it offers the wide product range. Instead of selling a particular niche, they are dealing with a wide range of products. Instead, they are selling almost every daily use product from the clothing to home accessories, cleaning and utility products and many more.


Not so good place for retailers

The amazon company operates on zero profit margin that resulted in low margin to the retailers as well. This is the reason why amazon is not considered as the great place for the retailers.

Less revenue

As the amazon company operates on zero margin, it causes them company to work in very less profitability. Though the revenue generation is high for amazon, still they are not making the meaningful profit. 

Free shipping

Amazon have now started offering the free shipping services to the customers as well. This is also a big threat for the amazon company to loss their margin and might generate no revenue from their business model.

Single minded retailing platform

The amazon is a single minded retailing platform and this concept of single minded retailing is also hindering the expansion of the company.


Own brand products

Currently, the company is selling the products from the third party only. The company can leverage the opportunity to start selling their own brands product. The company is already having a big market, starting their own brand will not only increase their revenue generation, but will favour their marketing as well as peoples will have more trust on the amazon’s product.



Growing competition is the major threat to the amazon company. Now there are many companies emerged in the ecommerce platform as well and these are stealing the customers of amazon.

The bottom line

So these are the major strengths, weaknesses, opportunities, and the threats of the amazon company. Basically, the cost leadership and the customer oriented strategy along with wide product range is the reason for the success of the company. 





 Storage always plays a vital role in an aspect of economic development. The warehouse had initially been viewed as static units for keeping and storing goods scientifically and systematically to maintain their original quality of goods. Generally, the warehouse receives goods by train, truck, and bullock carts. Warehouse services are used by manufacturers, importers, exporters, wholesalers, transporters, and several businesses. Warehouses services are not limited to storages services, but they also provide several services such as repackaging, stock inventories, and using e-commerce shipping solutions at a large scale. Warehouses help in the availability of the right quantity, at the right place, at a right time, and appropriate physical form at an affordable cost. There are lots of facilities in Morden warehouses including automating with automatic cranes and forklifts for moving goods and also using much logistic automation software for management of the warehouse. There are distinct types of warehouses that offer different types of services. Here in this guide, we will discuss the type of warehouses. 

Types of warehouses 

Heres a quick look at some of the different types of warehouses in the maintenance supply chain. It gives a guide on which one of the warehouses is appropriate for individual business. The selection of a warehouse is highly depending on the nature of the business.

Private warehouses 

Private warehouses are operated and owned privately by the large business themselves, retailers, wholesalers, and many more. Many businesses purchase in bulk at the peak of the season and store them in the warehouses in a systematic manner and distribute them according to the demand of goods. Generally, an efficient warehouse plans around a material handling system to increase maximum efforts in product movement. The private warehouses benefits are including control, flexibility; improve the relationship with dealers, and many more. 

Public warehouses 

The government is operating these warehouses by issuing licenses to private parties. An owner of these warehouses is acted as the agent of goods and takes care of the goods. The public warehouse can use for the storage of goods by traders, manufacturers, or any other member of the public after paying a certain amount of fees to a storage facility. These warehouses offer several facilities including transporting of goods by rail and road. They have responsibility for the safety of the goods. These types of warehouses are very convenient for many small businesses that they cannot afford to construct their warehouse.   

Bonded warehouses 

Bonded warehouses are licensed by the government to provide services for accepting import goods before paying tax and customs duty. These goods are imported from other nations. Importers are not allowed to remove goods from the docks and airports till customs duty is paid. When importers are not able to pay the duty and they do not require goods immediately. In this case, the imported goods are kept in the bonded warehouses by the customs authorities till the custom duty is paid. These warehouses offer several services including branding, packaging, blending, and grading. Importers can remove their goods in parts and according to their requirement of goods and also they can pay customs duty in installment.

Government warehouses 

These warehouses are completely regulated and operated by the government. The government operates warehouses through organizations set up in the public sectors for instance Food Corporation of India, state trading corporation, and central warehousing corporation. 

Digital warehouses

Smart warehouses are operated automatically with AI like storage, management, fulfillment process. There are so many software for management to robots and drones for performing several tasks such as packing, weighing, transporting, and storing goods. These types of warehouses are used by e-commerce markets like Amazon, Alibaba, and many more, They will use to make orders fulfillment quickly and less prone to human error.  

Cooperative warehouses

Cooperative warehouses are run by cooperative organizations like farmers or many others. These are used by cooperative members only. The charges of using warehouses are not fixed. The cooperative warehouse can be grate option for a cooperative society. 

Function of warehouses 

Warehouses are not only offering storage but also providing much more than that. There are several facilities provided by warehouses which are followings. 


Storage is the primary function of the warehouses. The warehouse provides spaces for the equipment, inventory, and many more. It gives storage facilities to businesses to store their goods until goods are not called for a sale. It helps in preventing wastages of stocks and give ensures of protection and safety of the goods. 

Dividing the bulk

One of the common functions is perform by the warehouse is dividing the bulk quantity of goods accepted from the production plants into small quantities. These small quantities are depending on the requirement of clients.


Value-adding services  

There are certain value-adding services performed by warehouses such as in transit mixing, packaging, and labeling, some goods need to open and repackage and label again at the time of inspection, and many more. Maintaining the safety of quality of product and dividing it into smaller lots is also another function of the value-added services. 


Warehouses owners take advance money for the owners on the security of goods and further them provide services on credit term to their regular customers. 

Prices stabilization    

Warehouse performs the function of stabilizing price by adjusting the supply of goods according to their demand of production. Thus, prices can fluctuate when supply is increased and demand is slack, it will work vice versa. 


Here in this guide, we mentioned the above type of warehouses and the function of the warehouse. I hope this will help you with which types of warehouses service are better according to your business.        



Role of communication in business

 Communication is the process of imparting or exchanging information by speaking, writing, or using some other medium as well. The requirement of communication is at every place where we need to give information to others, especially in business. Communication is the flow of several accurate information it is important for the people for successful completing of the job. All the things we need to know about the importance of communication services is that in the establishment of links with functions of business management. Business activities do not exist in isolation; it has to communicate with others to convey ideas and information. Business needs to establish communication links with suppliers, consumers, competitors, etc. Communication is one of the main components for the foundation and management of the business. It provides strength in managerial efficiency and assists in making human capital in the organization. Communication plays a crucial role in the efficient and smooth running of a business, in making a decision, proper planning, and production at low cost, creating mutual trust, confidence, and many more. Here in this guide, we will discuss the role of communication in business activities. The following points are highlighted.

Clearing objective of business 

The main object of communication is clearing the objects of business. Communication is a tool for conveying of vision of the business. Once the communication of vision is clear then we can make a road map and set objects of business. Communication is necessary information regarding objects of business. Clear instruction is important for every employee of the business for understanding their duty, aim, requirements of the business, and many more. Communication is an important tool for clearing the duties of employees, instruction to subordinates, business policies, and many more. It will help employees better understand the objects of business. 

Smooth and efficient operation of the business 

The smooth and efficient operation of a business completely relies on the effectiveness of the system of communication. Communication provides the essential for direction and leadership. An effective communication system in business helps to guide employees to take action under the desires of the management. Without proper communication, it is hard to perform business activities and achieve of goals of the business. 

Decision making

Communication is the basic factor for decision-making. It helps in making the quality of an organizational decision because the final decision entirely depends on the quality of information available to the management. And, the quality of information depends upon effective communication. Effective communication can influence the quality of the decision.

In the absence of communication, it might not be possible taking a decision and implement the decision in management.  


Communication is one of the main components of the management of the organization. It is the only tool for sharing thoughts, plans, opinions, and many more. Effective communication is required not only for building relations with the employees but also affecting the success of the business. It assists to enhance the productivity of the workplace. 

Strategy and coordination 

Communication is very crucial for making planning and coordinating business activities. When a good communication system prevails in the company then all the subordinates give their opinions regarding planning and performing activities to the superiors. This will help in the better formation of the plans. Participation of employees in planning and executing plans is essential for achieving desired goals. Communication plays an important role in Coordinating business activities and performance as well.

Increasing productivity at minimum cost

Good communication between superiors and subordinate plays a vital role in obtaining maximum production at minimum cost. Without effective communication, it is impossible to achieve desirable products. The leader of the production shares information regarding product manufacturing to employees through effective communication. Communication helps in giving details about the product and achieve in minimum cost. 

Motivating employees’ morale 

Motivation is one of the important factors for achieving the goal of business. The morale of employees refers to the self-confidence and discipline of employees for a business. Employees’ enthusiasm at the workplace gives the best results for the business. Management always tries to motivate the morale of employees through effective communication. Communication assists in building mutual trust and faith, and that will ultimately ensure job satisfaction among the employees. 

Democratic management 

Effective communication is the basic component of democratic management. There are several methods of democratic management including consulting, participating, and collaboration. These methods help in improving the business culture of employees’ engagement, commitment, and job stratification. 

Achievement of co-ordination 

There is a large number of employees are working in a large scale business. Mostly they adopt the method of working on basis of division of work and specialization. In this situation, they need co-ordination among the workers to attain the organization's goal. The achievement of co-ordination is obtained by effective communication.  

Creating mutual trust and confidence

Effective communication is important for building mutual trust among employees. It gives stratification regarding jobs to the workers. Trust is essential for healthy industrial relations. Communication assists employees in sharing their ideas and experiences this will eliminate their fears and help in building trust and confidence among employees. 

Increase in managerial confidence 

Mostly we see managers nearly spends 80 percent of the time transmitting the information to employees regarding the business targets, programs, policies, rules, ethics, and many more. Communication assists in managers completing their duties systemically and facilitates them to enhance their productivity.



All the mentioned points help everyone to understand the role of communication in the business. Here in this guide, is how communication affects the success of the business.