Order Letter - introduction, explaination, method and sample

Q:9 What is order letter? What points should be kept in mind while writing it?

Order Letter

Introduction:

An order letter is a contract between buyer and seller. While placing an order, you need just state your needs clearly and directly. Most of the companies use their own order forms. Order form presented by the buyer is called a purchase order and when it is provided by the seller it is called an order form. These forms have blank spaces to fill in with all the necessary information.

Definition:

“A letter written to the supplier for the delivery of goods is called an order letter.” or

“A formal request on the part of the buyer to the seller for the supply of good and services is called order letter.”

Importance of an Effective Order Letter

An effective letter is that which is complete, accurate and informative and brings the desired result as intended by the buyer. An incomplete orders result in delayed deliveries, and inaccurate facts and information result in the receipt of the wrong merchandise.  

 

Steps for Writing an Order Letter

 

Here are some main points which should be borne in mind while writing an effective order letter.  

1. Give The Information In A Clear Format 

An order letter must have accurate facts and pieces of information in clear form so as to execute the order timely. In order to make your letter easy to read and effective, one of the following steps may be suggested:  

• For each item write a separate, single-spaced paragraph and there should be double spacing between the paragraphs. 
• Arrange your order in a tabular form when there are many sets of numbers, items, and prices. In such cases avoid using sentences.

1. Mood In Letter  

An order letter should be written in imperative mood with mechanical words like please, kindly etc. Legally, an order letter is the “offer” in response to the reply of inquiry letter when the seller sends the merchandise, and this offer is accepted by the seller. Here the order contract is complete.

Specific and direct verbs should be used at the opening of sentence like “please send the following….” Or “Please ship…” instead of using vague phrases such as" I intend to ….." or “I’m interested in ….” Or “I’d like to….”  or “I want” or “I need,” 

1. Complete Description: 
   An order letter should be complete in every respect. In order to bring completeness, include the following pieces of information in your order letter:  

1.       Quantity ordered. 

2.      Catalog

3.      product Name

4.      Description of product as ;( 1) colour (2) size (3) material, (4) grade or quality etc.

5.      Per Unit price 

6.      Total price for the whole quantity  ordered

1. Mode of Payment:  

The buyer should tell the mode of payment to be used. It may be made on cash or credit basis. If you want to make payment through credit card, give the credit card number and the expiry date. Cheques, Bills of exchange, money order etc, may also be used for making payment.

1. Time of Shipping:

An order letter must tell the time limit or exact date when the merchandize should be shipped or delivered to the buyer. In case of any failure, the seller would be held liable for indemnity or as the buyer feels fit.

1. Mode of Transport:
   An order letter must tell the mode of transport through which the merchandize should be transported to the buyer. Goods may be transferred by rail, air or road.. In case of any delay, there may be a chance of loss.
2. Special Directions:
   The buyer may give some specific instructions regarding packing, insurance and custom duty.
    
   Order Letter
   Examination Hall,
   City A.B.C
   January 1, 2009
    
   The Sales Manager,
   XYZ Company,
   Lahore.
   Dear Sir, 
   We are greatly obliged to you for your letter of December 10, 2008 along with the catalog for Name of product. We have pleasure in informing you that we find your terms and conditions suitable. Please send us the following goods by train. 
   Sr. No.                            Item Name                                          Quantity
   1                                           
   2                                           
   3                                          
   4                                          
               The consignment may please be packed in strong cases. The book receipt may be sent with other documents through our bank from which you will receive the payment in cash. Payment will be made after we receive our consignment. Please make sure to send the consignment before January 20, 2009 so that we may accomplish our commitments with our customers timely.
    
                                                                                                                    Yours truly,  
   XYZ