Purchase Order
A purchase order (PO) is a document a buyer issues to a supplier that lists the SKUs, quantities, unit prices, delivery dates, and payment and shipping terms for an order of goods.
Why it matters for ecommerce brands
The PO is the record your warehouse receives against and your finance team pays against. Clean POs make receiving, landed cost, and three-way matching possible.
Common questions
- Is a purchase order legally binding?
- A purchase order generally becomes a binding contract once the supplier accepts it, whether by signing, confirming in writing, or starting performance. Until then it is an offer the buyer can usually withdraw.
Cite this entry
"Purchase Order (PO)." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/purchase-order/