QS Study

Meaning of Order Letter

The letter that is written by a potential buyer to the seller requesting him to deliver goods is known as order letter. By writing inquiry letters, buyers can collect necessary information about the price, quality of goods and terms of sale. If the buyer finds the quoted price, quality of goods and terms of sales satisfactory, he places an order to supply goods in his address. The seller delivers the goods according to the buyer’s order. It usually includes more information about what you are ordering, like quantity, model number, or color, the payment terms, and the matter in which the products are to be shipped.

In modem time, sellers supply printed order forms to the customers and customers place orders by filling up those printed order blanks. In this case, the printed order sheet or blank is considered as the order letter. Such letters contain three major categories of information:

  • Information about the items being ordered;
  • Information relating to shipping; and
  • Information relating to payment.