Glossary term

Quote (quotation)

Definition

A formal offer stating the price and terms at which a seller will supply specific goods or services, usually valid for a stated period. It becomes an order once the buyer accepts it, and in Shopify B2B workflows a quote may be issued as a draft order for approval.

A quote (also called a quotation) is a formal offer that states the price and terms at which a seller will supply specific goods or services. It usually stays valid for a stated period, and it becomes a binding order the moment the buyer accepts it. Unlike an estimate, which is a rough figure that can shift, a quote is a firm commitment to the numbers written on it.

What a quote includes

A complete quote lists the exact items or services, quantities, unit prices, any discounts, taxes, shipping or handling, and the total. It also states the terms that matter to both sides: how long the price holds (the validity window), payment terms, lead time, and any conditions on the offer. Because those figures are fixed for the stated period, the buyer can compare it against other suppliers with confidence.

Why it matters in B2B

Business buyers rarely check out at list price. They order in volume, negotiate, and need internal approval before spending. A quote gives them a document they can circulate, sign off on, and turn into a purchase order. For the seller, it sets clear expectations and protects margin, since the price is only good until the expiry date.

How it works on Shopify

Native Shopify checkout is built for fixed-price retail, so quoting usually happens through a draft order. A merchant captures the request, prices it (custom line items, negotiated discounts, shipping), and issues it as a quote for approval. Once the buyer accepts, that draft converts into a real order they can pay through standard Shopify checkout. Tools like ShopQuotes formalize this into a Live Quote the buyer can review, accept, and pay in one place. See the full B2B quoting glossary for related terms like RFQ and draft order.

Frequently asked

What is the difference between a quote and an estimate?

An estimate is an approximate figure that can change as details firm up. A quote is a fixed offer: the prices and terms hold for the stated validity period, and the buyer can accept them as written.

Is a quote legally binding?

The seller is generally bound to honor the stated price and terms until the quote expires. It becomes a binding contract once the buyer accepts it within that window.

How does a quote become an order in Shopify?

A merchant typically issues the quote as a draft order. When the buyer accepts, the draft converts into a real Shopify order they can pay through native checkout.

Turn quote requests into paid orders

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