UNIT 2

KINDS OF BUSINESS LETTERS

A. Definition of Business Letter

Business letter is a letter sent one company to others, or one organization to another
that aims to get profits for both. This letter can be sent through post office although
nowadays these letters are usually sent via email or fax. This is because both medias are
more efficient for both parties especially when they need the information faster.

B. Simple Flowchart of Business Letter

Below is the simple flowchart of common business letter:
Buyer Seller
First Inquiry Letter/Routine Inquiry
Reply to Inquiry/Sales Letter/Quotation
Letter
Order Letter + Giving Reference Execution of Order Letter
Letter Declining of Order Letter
Payment Confirmation Letter Reminder Letter
Complaint Letter Adjustment Letter

C. Kinds of Business Letter

1. Inquiry Letter
Inquiry letter is a letter from a buyer to the seller asking for some product
information needed. The information need usually are the price of the product, the
discount given, the terms of payment, the terms of delivery, the sample of product if it is
available, the catalogue and the quotation from the seller. Inquiry letter can be divided
into two, first inquiry letter and routine inquiry letter.
When we talk about first inquiry letter, it means we talk about the letter sent by
the buyer who has not done a business with the seller yet. So, it is the first time both meet
in a business. While when we talk about routine inquiry letter, it means both buyer and
seller have done some business before. Because of that, the content of both letters is also
different. The difference of both is in the first paragraph as shown in the following table:

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 Paragraph First Inquiry Letter Routine Inquiry Letter
1 Tell the seller where the buyer got Mention what the buyer needs
the information about the seller, for from the seller, like the quotation,
example, from website, terms of payment, terms of
newspapers/magazines, exhibition, delivery, the discount, the sample
or other buyers’ business partner. of the product and the catalogue.
2 Mention what the buyer needs from Hope that the seller can reply the
the seller, like the quotation, terms letter immediately.
of payment, terms of delivery,
delivery method, the discount, the
sample of the product and the
catalogue.
3 Hope that the seller can reply the
letter immediately.

2. Reply to Inquiry Letter

Reply to inquiry letter is an answer letter for inquiry letter that sent by the seller.
The letter is also called sales letter/offering letter/quotation letter. In this letter, the
seller must briefly explain all questions from the buyer related to his/her/their products
sold. For example, the seller must explain the requirement to get the discount; the
possibility to get the sample of products; the price; the minimum order allowed; and the
delivery methods used (land, air, or water transportation).
Reply to inquiry letter consists of three paragraph and the content of it:
Paragrap Content Note
h
1 Thanking The seller thanks the buyer for sending him/her/them the
inquiry letter.
2 Providing The sellers will give the details information asked by the

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 information buyers in the inquiry letter, for example, the products
quantity, terms of delivery, terms of payment, how to get
the discount, the samples if it is possible for the seller to
send the samples, and the quality of the products. The
seller can also give additional information related to their
other products, too.
3 Closing Here, the seller hopes that the buyer will place
his/her/their first order soon so their business will also
start soon.

3. Order Letter
Order letter is a letter from the buyer who wants to buy the seller’s products after
receiving brief explanation about the products and the terms from the buyer in the reply
to inquiry letter. Usually, the buyer has his/her/their own printed order forms when
he/she/they want/s to place an order to the seller. This printed order form is different from
one company to another, and it is adjusted to each product. However, the buyer can also
write the order on the letter sent to the seller, or without enclosing the order form. In
summary, when a buyer wants to place an order, he/she/they can use an order form or
not, depending on the rule of the company. That is why there are two kinds of order
letter: order letter with order form and order letter without order form.

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 The following is the example of the printed order form:

Name of the company (the buyer)

Complete address
Telephone/Email

Order No. … Date: …………

Name of the company (the seller)
Complete address

Please supply:

Quantity Item(s) Catalogue No./Code Price

Name of the products

Signature
Name of the person who place the order

Note: The table will be different for different products, too; and you can add color
or size, for example.

If the buyer does the first cooperation with the seller, he/she/they will also mention
the business reference and bank reference in the second paragraph of order letter without
being asked by the seller. So, there is a difference below the content of the order letter for
the first order and the routine order:
First Order Letter Routine Order Letter
Paragraph 1 Paragraph 1
Thanking for receiving the reply to Thanking for receiving the reply to
inquiry from the seller. inquiry from the seller.
Paragraph 2 Paragraph 2
Telling the seller what products will be Telling the seller what products will be
ordered by mentioning whether it is ordered by mentioning whether it is

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 enclosed or written on the letter. enclosed or written on the letter.
Then, telling the seller who are the
business partners and the bank who have
been cooperating with the buyer.
Paragraph 3 Paragraph 3
Hoping that all the products are available Hoping that all the products are available
because those are needed immediately. because those are needed immediately.

4. Execution of Order Letter (Acknowledgement of Order)

Execution of order letter is a letter informing the buyer that their order is available
in stock so it can be sent immediately after the seller receives the payment from the
buyer. Execution of order letter will be sent by the seller after he/she/they investigate the
business reference and bank reference given by the buyer in the order letter before. In this
letter, the seller also writes the method of delivery (mention the transport used if it is
possible), and the estimated date the products will reach the buyer. Usually the seller also
encloses the invoice as the proof of the transaction between both parties. If the references
given in the order letter make the seller doubt, the seller can decline the order sent by the
buyer. This happened because the seller does not want to take a risk by sending the buyer
their order while their validity in paying the order is still being questioned.
Below is the content of the execution of order letter:
Acknowledgement for First Order Acknowledgement for Routine Order
Paragraph 1 Paragraph 1
Thanking for getting order from the Thanking for getting order from the
buyer. buyer.
Paragraph 2 Paragraph 2
a. Confirming price and delivery Confirming price and delivery
information. information.
b. Informing other goods that may
attract buyers’ attention.
Paragraph 3 Paragraph 3
Hoping that the buyer feels satisfied with Hoping that the buyer feels satisfied with

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 the products and wishing for the future the products.
business dealings.

5. Complaint Letter
Complaint letter is a letter sent by the buyer for he/she/they find/s something
wrong with the products ordered before. There are some kinds of complaint letter:
Complaint letter about goods
1 Complaint concerning The buyer sends this letter because some or all goods
wrong goods ordered are wrong, different from those written on the
order form/invoice.
2 Complaint concerning The buyer sends this letter because the quality of the
quality goods ordered is different from the product sample
given before.
3 Complaint concerning a. Shortage in quantity: the buyer receives less than the
quantity total number of products written on the invoice.
b. Surplus in quantity: the buyer receiver more than the
total number of products shown on the invoice.
4 Complaint concerning The buyer sends this letter because the price of the
goods price products (unit price or the total price) is different from
the price that has been agreed before.
Complaints Concerning Delivery
1 Complaint concerning The buyer sends this letter because there are some or
damaged goods all goods are damaged after being checked in the
warehouse.
2 Complaint regarding The buyer sends this letter because the seller packs the
bad packing products in bad condition that can make the products
themselves damaged.
3 Complaint regarding The buyer sends this letter because the buyer has not
non delivery received the product yet. The time for dispatching the
products is longer than the time agreed.
4 Complaint regarding The buyer sends this letter because the seller often

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 frequent late deliveries sends the product late. This influences the buyer’s
operational activity for the products are highly needed.
Complaint Concerning Poor Service
This letter means that the buyer does not feel satisfied with the seller’s service related
to their order. The reason is because the buyer does not get proper attention when
he/she/they order/s the products from the seller.

The following points can be remembered when we make a complaint letter:

a. do not delay as this will weaken your position, and the supplier may have difficulty
investigating the cause;
b. do not assume that the supplier is automatically to blame. They may have a perfectly
good defense;
c. avoid rudeness because it will create ill-feeling and cause the supplier to be unwilling
to resolve matters;
d. in your letter: (1) describe the item or service you bought; (2) say where and when
you bought the item, and how much it cost; (3) explain what is wrong, any action you
have already taken, to whom you spoke and what happened; (4) explain what you
expect to be done to rectify the situation, for example a refund or repair, or the job
done again without charge;
e. use recorded/special delivery so that you have a check that your letter has been
received;
f. keep copies of your letters, and never send original documents or receipts.
In general, the content of the complaint letter is the same. It consists of three
paragraphs. The difference is only in the second paragraph because it must be matched
with the kinds of the complaint faced.
Content of Complaint Letter
1 Informing the seller that the buyer has received the products order. However,
when you send complaint letter regarding non delivery/frequent late deliveries,
this paragraph will inform the seller that the buyer has not received the products
yet.
2 Informing the sellers the details about complaint or reasons for dissatisfaction.

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 This paragraph will be based on each category of complaint letter you sent to
the seller.
3 Informing the sellers the action requested.

6. Adjustment Letter
Adjustment letter is a letter sent by the seller to solve the complaint letter from the
buyer. This letter is also called acknowledgement letter. Every adjustment letter sent by
the seller should be matched with complaint received so sometimes different complaint
will get different adjustment.
The content of the adjustment letter:
Paragraph Content
1 Expressing regret.
2 Explaining how the mistakes occurred and telling the buyer that the action
is being taken to rectify the matter.
3 Apologizing for the mistakes occurred.

Most sellers, in dealing with a complaint, will investigate, explain, and put things
right. Receiving such complaints may also suggest ways in which the sellers’ products or
service can be improved. Remember these points if a seller deals with the complaint:
a. the customer is always right, although it may not be the case,
b. acknowledge complaint properly and if the seller is not unable to reply fully, explain
that it is being investigated and a full reply will be sent later.

D. Expressions Used in Each Business Letter

1. Inquiry Letter
a. First Inquiry Letter
1) Paragraph 1 (opening paragraph)
a) We saw your products at the Hanover Fair earlier this year and would like to
know…
b) We have seen your advertisement in last Sunday’ Observer.

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 c) Your advertisement in this month’s issue of The Shoemaker states that you
can offer …
d) British Chamber of Commerce in Hamburg has given your name.
e) We are interested in … (name of the products) as advertised recently in …
(mention where the buyer gets the information: website, newspaper, or
magazines).
f) I understand you are manufacturers of (dealers in) … and should like to
receive your current catalogue.
2) Paragraph 2 (main section/main paragraph)
a) There is a brisk demand here for high-quality …you manufacture (product).
b) These fancy goods are in demand during the tourist season.
c) Will you please send us your catalogue and pricelist for … (name of the
products).
d) It would be helpful if you could send us samples showing your range of
suitable coverings.
e) Please send us details of (name of the product) which you supply, together
with prices.
f) If you can supply suitable goods, we may place regular orders for large
quantities.
3) Paragraph 3 (closing paragraph)
a) We look forward to receiving your reply immediately.
b) We appreciate your fast response.
c) Your prompt reply would be appreciated.
d) We look forward to hearing from you soon.
e) I hope to hear from you soon.
b. Routine Inquiry Letter
1) Paragraph 1 (opening paragraph)
a) Please send me your latest catalogues together with the price of your …
(mention the name of the products).
b) I have seen your latest product on your website so please send me the details
of the products.

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 2) Paragraph 2 (closing paragraph)
a) I hope to hear from you soon.
b) I should appreciate your advice on these matters.
c) Your prompt reply would be really appreciated.
2. Reply to Inquiry Letter
Paragraph 1: Thanking
a. Thank you for your letter of … (write the date of the inquiry letter). As requested
we enclose … (mention things you enclose for the buyer, such as catalogue,
sample of the products, or the pricelist).
b. I was pleased to learn that you are interested in our … (mention the name of the
product).
c. Thank you for your enquiry letter dated … regarding …
d. We thank you for your letter enquiring our … (mention the name of the product)
and we are pleased to enclose the catalogue and the details you needed.
Main section – reply for asking catalogue
a. You will find details of … (name of product) shown on page … of the
catalogue.
b. We also would like to recommend you check our newest products and all
details are on page … of our latest catalogue.
c. Our … (name of the product) has high quality differed from other companies.
d. We are careful in choosing the material so that our product has its loyal
customers.
Main section – replying for specific terms (discount, payment, quotation, delivery,
sample)
a. On regular purchases of quantities of not less than … (mention how many units,
like 100 pieces, 500 units or other) individual units, we would allow a trade
discount of … (write how much the discount given, such as 20%, 25%, or
more).
b. For payment within 10 days from receipt of invoice, an extra discount of …
(write how much the discount) of net price would be allowed.
c. We will send the products if you have paid 60% from the net price.

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 d. If you have paid 50% from the total amount, we will directly send the products
to your warehouse.
e. We also enclose our sample of the materials in separate post.
f. Our representative in your town are available to demonstrate our awesome
products. Please just contact him/her on … (phone number of the
representative).
Paragraph 3 – closing
a. We look forward to receiving a trial order from you soon.
b. We shall be pleased to send you any further information you may need.
c. Any orders you place with us will have our prompt attention.
d. Please let me/us know if you need any further details.

3. Order Letter
Paragraph 1 – opening
a. Thank you for your quotation of … (mention the name of the products).
b. We have received your reply to inquiry letter dated …, enclosing your latest
catalogue and all terms we need.
c. Thank you for sending us your reply inquiry letter on … (date).

Paragraph 2 – main section

a. After learning your terms, we have decided to order the following items:
(mention the products will be ordered).
b. We have enclosed our order form no …
c. Please supply the following items as quickly as possible and charge to our
account:

If it is the first order, you can add:

a. We also would like to inform you that we bank with … (name of the bank) and
we have done some business with … (name of the other business partners, more
than one will be better).
b. As this is our first time sent you an order, we have some references. We bank

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 with … and we also does some business with …
Paragraph 3 – closing
a. Prompt delivery would be appreciated as the goods are needed urgently.
b. Please acknowledge receipt of this order and confirm that you will be able to
deliver by … (the date).
c. We hope to receive your advice delivery by the return post.
d. We look forward to your prompt delivery.
e. All these items are urgently required by our customers so we hope you will
send them immediately.
f. We understand that you are arranging for immediate delivery.

4. Execution of Order Letter

Paragraph 1 – thanking
a. Thank you for your order dated …
b. We thank you for your order number … and will dispatch the goods by …
c. We were pleased to receive your order no. … of … (date).
Paragraph 2 – informing the goods delivery or others
a. As the stocks are available in our warehouse, we will send the products by …
(date) and it will reach you on … (date).
b. We confirm supply of … (name of the products) at the prices stated in your
letter.
c. Delivery should be made after we receive 50% payment from the total amount
stated in the invoice.
d. We will deliver the products early next week by our own vehicles.

Declining the order

a. We are sorry to inform you that we cannot supply the products for the stocks
are not available in our store.
b. After learning from your references, we are sorry that we must decline your
order.
c. We are sorry to inform you that the products ordered on … (date) cannot be

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 supplied.
Paragraph – closing
a. We hope the goods reach you safely and that you will be pleased with them.
b. We hope that you will find the goods satisfactory and look forward to receiving
your further orders.
c. We are pleased to say that these goods have been dispatched today (will be
dispatched in …/are now awaiting collection at …).

5. Complaint Letter
Paragraph 1
a. The goods we ordered from you on … have not yet been delivered.
b. Delivery of the goods ordered on … is now considerably overdue.
c. We regret having to report that we have not yet received the goods ordered on …
d. We regret to report that one of the cases of your consignment was badly damaged
when delivered on …
e. When we examined the goods dispatched by you on … we found that …
f. We have received a few complaints from several customers regarding the …
supplied by you on …
Paragraph 2 – Main section
a. I am very unhappy with …
b. This situation is causing us a great deal of inconvenience.
c. This standard of workmanship is not what I have come to expect from you.
d. This service is well below the standard expected.
e. I felt you would wish to know about this.
f. I am sure you will wish to investigate this and find out what happened.
g. I am used to good quality from …
Paragraph 3
a. Please investigate this matter at once and let us know the reason for this delay.
b. We hope to hear from you soon that the goods will be sent immediately.
c. We feel there must be some explanation for this delay and await your prompt reply.

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 d. We hope to learn that you are prepared to make some allowance in these
circumstances.
e. I hope to receive a complete refund soon.

6. Adjustment Letter
Paragraph 1 – opening
a. We are concerned to learn from your letter of … that the goods sent under your
order number … did not reach you until …
b. I am sorry that you have experienced delays in the delivery of …
c. I am very sorry to hear about … in your letter of …
d. Thank you for your letter of …, which has given us the opportunity to rectify a
most unfortunate mistake.
e. We wish to apologize for the unfortunate mistake pointed out in your letter of …
Paragraph 2 – main section
a. We appreciate the opportunity to clarify this issue.
b. From your comments it is obvious that on this occasion a mistake was made.
c. You have rightly pointed out that …
d. In the circumstances I feel we should make amends for the inconvenience
caused.
e. Due to an oversight …
f. It is unfortunate that …
g. I am sorry about the distress this caused you.
Paragraph 3 – closing
a. We assure you that we are doing all we can to speed delivery and offer our
apologies for the inconvenience this delay is causing you.
b. We hope you will be satisfied with the arrangements we have made.
c. We trust these arrangements will be satisfactory and look forward to receiving
your future orders.
d. We regret the inconvenience which has been caused in this matter.
e. We apologize once again for the unfortunate mistake and can assure you that a
similar incident will not occur again.

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f. As a gesture of goodwill, I am pleased to enclose …
g. Thank you once again for taking the time to write to us.

--- End of Unit 2 ---

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