Glossary term

Quotation

Definition

Another word for a quote, referring to the seller's stated price and terms for a specific set of items. It is generally treated as a binding offer for the duration of its validity period.

A quotation is a seller’s formal statement of the price and terms for a specific set of items a buyer has requested. It is another word for a quote, and it typically lists line items, quantities, unit prices, applicable taxes or discounts, and any delivery or payment conditions. For the length of its validity period, a quotation is generally treated as a binding offer: if the buyer accepts within that window, the seller is expected to honor the stated numbers.

What goes into a quotation

A complete quotation usually covers the items and quantities, agreed unit pricing (which for B2B may differ from public catalog prices), taxes, shipping, an expiry or “valid until” date, and terms such as payment window or minimum order quantity. The validity period matters because costs change. Once it lapses, the seller is free to requote.

Why it matters in B2B

Business buyers rarely pay list price. They ask for a quotation so they have a documented, approvable number to take to procurement or finance. Because the figure is treated as a firm offer during its validity window, both sides can plan around it. A clear expiry date protects the seller from being held to old pricing while giving the buyer a real deadline to decide.

Quotations on Shopify

Standard Shopify checkout assumes fixed catalog pricing, so quotations do not fit the default flow. Merchants handle this by converting a quote request into a draft order with custom pricing, then sending the buyer a link to review and pay. Tools like ShopQuotes turn a request into a branded, checkout-ready quote page that expires on a set date, so acceptance flows straight into native Shopify checkout. See the full B2B quoting glossary for related terms like quote request, draft order, and validity period.

Example

A distributor asks for 500 units. You send a quotation at 12.50 per unit, valid for 14 days. If they accept on day 10, that price stands. On day 20, you can requote.

Frequently asked

Is a quotation legally binding?

A quotation is generally treated as a binding offer for the duration of its stated validity period. If the buyer accepts within that window, the seller is expected to honor the quoted price and terms. Once it expires, the seller can decline or requote.

What is the difference between a quotation and an invoice?

A quotation is issued before a sale to propose price and terms the buyer can accept. An invoice is issued after the buyer has agreed and requests payment for goods or services already committed to or delivered.

How long should a quotation stay valid?

There is no fixed rule, but 14 to 30 days is common. The right window balances giving the buyer time to approve internally against protecting you from cost changes. Always state a clear expiry date so both sides know the deadline.

Turn quote requests into paid orders

ShopQuotes is a free-to-start Shopify app for branded, checkout-ready quotes.