Reorder module to drop inside collection.liquid - may need CSS love. http://docs.shopify.com/manual/configuration/store-customization/advanced-navigation/add-a-reorder-drop-down-menu-to-a-collection-page

gistfile1.html

<div>
  <label for="sort-by">Sort by</label> 
  <select id="sort-by">
    <option value="manual">Featured</option>
    <option value="price-ascending">Price: Low to High</option>
    <option value="price-descending">Price: High to Low</option>
    <option value="title-ascending">A-Z</option>
    <option value="title-descending">Z-A</option>
    <option value="created-ascending">Oldest to Newest</option>
    <option value="created-descending">Newest to Oldest</option>
    <option value="best-selling">Best Selling</option>
  </select>
</div>
<script>
Shopify.queryParams = {};
if (location.search.length) {
  for (var aKeyValue, i = 0, aCouples = location.search.substr(1).split('&'); i < aCouples.length; i++) {
    aKeyValue = aCouples[i].split('=');
    if (aKeyValue.length > 1) {
      Shopify.queryParams[decodeURIComponent(aKeyValue[0])] = decodeURIComponent(aKeyValue[1]);
    }
  }
}
jQuery('#sort-by')
  .val('{{ collection.sort_by | default: collection.default_sort_by | escape }}')
  .bind('change', function() {
    Shopify.queryParams.sort_by = jQuery(this).val();
    location.search = jQuery.param(Shopify.queryParams).replace(/\+/g, '%20');
  });
</script>

Thank you all for the codes! It worked for me on the Debut theme. I was just wondering if anyone knew how to add space below the sort by drop down menu as it is currently touching the product image below it. Thanks

Thank you soo much. Its working perfectly fine for me. Huge Thanks.