Merits :

(a) Limited Capital requirement.

(b) Elimination of middlemen.

(c) Absence of bad debts.

(d) Convenience.

Demerits :

(a) Lack of personal contact.

(b) High promotion cost.

(c) No credit facilities.

(d) Delayed delivery.

Detailed Answer :

Merits :

(a) Limited capital: In mail order retailing, the retailer need not to maintain any showroom shop, that saves the investment in shop's display, stock of goods, etc. 

(b) Convenience : Shopping becomes easy and convenient through mail order house. The customers can make purchases from their own homes. 

(c) Wider market : There is no geographical limit of market in mail order. Goods can be sold throughout the world wherever postal facilities are available. 

(d) No bad debts : As goods are sent through VPP so they are delivered only on receiving payment. Therefore, less chances of bad debts.

Demerits of Mail order House : 

(a) No personal contact : There is no face-to-face contact or interaction between buyer and seller. So many customers do not have confidence in this type of trading. 

(b) Limited variety : Bulky items, perishable items and the items requiring demonstration can't be sold through mail order retailing. 

(c) Postal delay : The mail order retailing has great dependence on the postal department. There are chances of undue delay, spoilage of goods in transmit, etc. 

(d) Heavy advertising cost : In mail order retailing, demand can be created only by advertisements. They have to spend a huge amount of funds on advertisement. 

(e) Chances of cheating : As there is no chance of personal inspection, dishonest traders may cheat. They may collect advance payments and fail to deliver the goods.