Business correspondence - Order letter

Order Letter in Business Correspondence

Meaning of Order Letter:

An Order Letter is a formal document sent by a buyer to a seller, requesting the supply of goods or services as per the agreed terms and conditions. It serves as a written confirmation of the order placed.

 Importance of Order Letter:

Acts as a legal record of the transaction.

Clearly specifies the requirements of the buyer.

Helps avoid misunderstandings and disputes.

Initiates the purchase process officially.

Useful for future references and follow-ups.

 Key Features of an Order Letter:

Formal Tone – Professional and polite language.

Complete Details – Clear description of items, quantity, price, and delivery.

Order Reference – Mention previous communication like quotation or catalog.

Delivery Instructions – Timeframe, shipping method, and address.

Payment Terms – Mode and timing of payment.

Signature – Authorized signatory’s name and designation.

 Format of an Order Letter:

1. Sender's Address

2. Date

3. Receiver’s Address

4. Subject: Order for Supply of Goods

5. Salutation (e.g., Dear Sir/Madam)

6. Body of the Letter

Opening: Refer to previous correspondence/quotation.

Details of Order: Product names, quantities, prices, delivery date, etc.

Special Instructions: Packing, transport, payment, etc.

Closing: Express expectation of prompt delivery and cooperation.

7. Complimentary Close (e.g., Yours sincerely)

8. Signature with Name and Designation

 Example of an Order Letter:

ABC Stores
Main Market, Delhi
27th June 2025

The Sales Manager
XYZ Electronics Pvt. Ltd.
Nehru Place, Delhi

Subject: Order for Supply of Electronic Goods

Dear Sir,

With reference to your quotation dated 20th June 2025, we are pleased to place an order for the following items:

Kindly arrange to deliver the goods to our store address by 5th July 2025. Payment will be made through cheque upon delivery.

Please ensure proper packaging to avoid any damage during transportation.

We look forward to your prompt delivery.

Yours sincerely,
(Signature)
Rahul Verma
Manager – ABC Stores

 Types of Order Letters:

1. Routine Order Letter: Order placed after reviewing catalogs or quotations.

2. Urgent Order Letter: Immediate supply is requested.

3. Repeat Order Letter: For goods previously ordered.

 Precautions while Writing an Order Letter:

• Ensure accuracy in product details.
• Clearly mention quantity, price, and specifications.
• Provide a complete delivery address.
• Specify delivery and payment terms.
• Maintain polite and professional language.