An estimate is an approximate figure for the likely cost of goods or services, provided when the exact price cannot yet be fixed. It is not a binding offer. By its nature it tells the buyer that the final amount may move up or down once the details are settled.
How an estimate differs from a quote
The difference is commitment. A quote (or firm quote) states a price the seller agrees to honor, usually for a set period. An estimate is a best guess based on the information available at the time. If a buyer accepts a quote, both sides expect that number to hold. If a buyer works from an estimate, both sides understand the final invoice may differ.
Estimates are common when scope is still loose: custom manufacturing, freight that depends on final weight or destination, large orders where volume pricing is not yet locked, or products with variable material costs.
Why it matters in B2B
Estimates keep a deal moving before every variable is known. A buyer can budget and get internal approval off an estimate, then you convert it to a firm quote once quantities, shipping, and specs are confirmed. Being clear about which one you are sending protects both sides. Labeling an estimate as a quote can create a dispute when the real cost lands higher.
Example
A merchant selling branded packaging gets a request for 50,000 custom boxes. Ink coverage and shipping are not final, so they send an estimate of $0.42 per unit. Once artwork and freight are confirmed, they issue a firm quote at $0.44 that the buyer can accept and pay.
On Shopify, this maps to a normal workflow: start with an approximate figure while details settle, then send a firm, checkout-ready quote the buyer can accept and pay through native Shopify checkout. See the B2B quoting glossary for related terms like quote, RFQ, and draft order.