What is meant by trail, routine, conditional, approval, time-bound and cancellation of orders?


Trial order: No buyer places a very large order with a new seller for the first time. The first order is therefore, usually a trial order. A trail order is often placed either to test the efficiency of the seller or to test the marketability of the goods in question. Usually a trial order is the result of a sales drive on the part of the seller either in the form of a voluntary offer or a newspaper advertisement. A trial order usually contains a reject clause.

Routine order: Once the buyer is satisfied with the efficiency of the seller and the demand for the goods in the market he will place order at regular intervals. Such orders are called as routine orders. To save time, such orders are usually sent in the form of very short letters or in order forms that have been printed.

Conditional order: A conditional order is an order which asks for goods to be delivered on certain conditions only. The conditions usually are about safe packing, special discount for bulk order, free delivery or payment facility. A letter containing a conditional order must be persuasive in tone as the letter has to persuade the seller to grant the concession or special attention that has been asked for.

Time bound: In most orders time factor is important and they specify a time limit by which the order must be executed. If the order is not carried out in time the buyer has the right to cancel and reject the goods. Orders that contain time limit or date by which the goods should be delivered are called time bound orders.           

Approval of orders: If the goods are sold on approval the buyer can return them without obligation his part within the stipulated period. If however the buyer keeps the goods more than the reasonable period or beyond the stipulated period then he is said to have accepted them and has to pay accordingly.

Cancellation of orders: An order is usually cancelled by the buyer for one of the following reasons:

1)      If the order is not executed by the due date.

2)      Inability to supply ex-stock.

3)      Goods not matching the sample.

4)      Inferior quality making sales impossible.

5)      Substitution of another item.

If for any reason mentioned above an order is cancelled the party canceling the order must inform the seller immediately by telephone or fax. In the letter of cancellation that he sends later he must clearly show regret for the inconvenience he is causing the seller.


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