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 good according to the buyer’s order.
In modern time, sellers supply printed orders 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.
Factors to Be Considered In Writing Order Letter or, Contents of Order Letter
Through order letter, the potential buyers request the suppliers to deliver goods to them. In modern time, printed order blanks or purchase order forms supplied by the seller are typically used for placing orders. However, in absence of order blanks and purchase order forms, order letters are written. Such letters contain three major categories of information:
- Information about the items being ordered;
- Information relating to shipping; and
- Information relating to payment.
1. Information about the items being ordered: An order letter must contain full particulars of goods ordered. Such information include the followings:
- a. Product name
- Brand name
- Catalog number
- Model number
- Unit price
2. Information relating to shipping: Shipping information is very important. In absence of shipping information, there can arise misunderstanding between buyer and seller. Shipping information may include the followings:
- Desired receipt date;
- Desired shipping location; and
- Mode of shipping (rail, road, or waterways).
3. Information relating to payment: Mode of payment of prices for the ordered items must be clearly indicated. The seller will accept the order letter only when both of them come to a common ground relation to payment of price. Payment information include the following:
- Mode of payment (cash, cheque, draft)
- Payment data
The above stated factors are usually included in order letter. However, the buyer can include any other instruction or element if he thinks necessary.