Selling by Mail Order

Increase profits with a focus on list management and order fulfillment
By Amy Gesenhues, Director of Marketing Autodemo LLC Selling by mail order may seem like a thing of the past with the success of online retailing, but if you already own a mail order business you know that there are still plenty of dollars to be made via U.S. mail — if you know how to sell, that is. After all, a successful mail order business takes time and tenacity on the front end, but on the back end it's simply a matter of:

1. Pricing your merchandise correctly
2. Marketing your products effectively
3. Fulfilling your orders quickly
4. Serving your customers completely

 

Revisit your sales offers

Pricing is crucial in mail order, and so is presentation. A product that you sell at "two for $2" might be better marketed as "buy one at $2, get one free."
Try: While consultants are often costly, it may be worth the investment to hire pricing experts, such as those listed in the Professional Pricing Society's directory of experts, to help you find your magic numbers.

Overhaul your mailing list

Continued success in mail order demands that you keep your mailing lists current.
Try: Microsoft's Dynamics CRM, NetSuite or iRadeon, can help you manage your lists to keep them current and prevent decay. You should also work with a list broker, however, such as AllMedia Inc. or USAData, to identify new list opportunities. The National Mail Order Association can also advise you regarding list management and growth.

Study shipping

Selling more products won't help your bottom line if your shipping costs are spiraling out of control. Know your shipping options in order to find often-overlooked savings.
Try: Even the smallest mail order companies can save on shipping. Start with eBay's Tips on how to save on shipping cost.An Introduction to Mailing for Businesses from the U.S. Postal Service has tips for mailing more efficiently and inexpensively. The UPS Solution Finder helps you save money on shipping.

Fix your fulfillment problems

Mail order isn't only about collecting orders; it's also about processing, packing and shipping them. Doing all of the above accurately and inexpensively is key.
Try: Use Ecometry Software or Everest Software to manage your fulfillment process more easily and effectively. Or consider other options, such as drop shipping or even outsourcing your fulfillment to efficiency-minded experts, such as Coast to Coast Fulfillment or Technipak.

Market more strategically

Successful mail order requires successful advertising. Put your marketing dollars to better use by advertising your merchandise in the right media at the right time of year. And always include a call to action, including a Web site and phone number from which to place orders.
Try: Use MediaFinder to find the best media outlets and publications for your ads. QuantumMail or DirectMail help design, create and send direct mail campaigns, as well as buy and manage mailing lists.

Choose a better product

Perhaps the easiest way to improve your mail order sales is to choose stronger merchandise. The best mail order products are lightweight, difficult to break, appeal to a broad market and have a large profit margin.
Try: Rather than selecting a product and then finding a market for it, a unique approach to new product selection is to start with your market and then choose a product. Survey your existing customers – via an online survey service such as InstantSurvey – to find out what they'd be interested in buying.

• The secret to selling more via mail order is testing; test thoroughly and often to find out what marketing venues work best, what sales language gets most results and what distribution makes your mailings most profitable.
• Marketing to repeat customers is key; keep detailed records of past purchases in order to identify – and target – your most loyal consumers.
• Consider using a co-op mailing service, which can help you save money by sharing postage costs with other mail order sellers.
• Be aware of all laws applicable to the mail order business; for example, the Federal Trade Commission's 30-day Delay Delivery Rule.
• The best months to sell by mail order are, from best to worst: January, February, October, November, March, September, August, April, December, July, May, and June.