If you're entering North American retail for the first time, EDI — Electronic Data Interchange — is one of the first technical requirements you'll encounter. Almost every major US and Canadian retailer requires it, and failure to comply can delay your first order, trigger chargebacks, or get your vendor account suspended before it's even active.
EDI is the standardized electronic exchange of business documents between you and your retail partners. Instead of emailing purchase orders and invoices, everything flows through a structured electronic system using standardized formats (the most common being ANSI X12 in North America). The core EDI transactions you'll use are the 850 (purchase order), 856 (advance ship notice), and 810 (invoice).
Major retailers process millions of transactions annually. Manual processing is impossible at scale. EDI enables automated receipt of orders, real-time inventory updates, and faster payment processing — it's a prerequisite for operating efficiently in their supply chain.
You have three main paths: build in-house EDI capability (expensive, requires technical resources), use a third-party EDI provider (cost-effective for smaller vendors), or work with a 3PL that includes EDI services. For brands new to North American retail, a third-party EDI provider like SPS Commerce, TrueCommerce, or DiCentral is typically the right starting point.
Every retailer requires you to complete a testing and certification process before you can go live on their EDI system. This typically takes 2-6 weeks and involves sending test transactions back and forth until both parties confirm everything is working correctly. Don't underestimate this timeline — it can delay your first purchase order significantly if you haven't started early.
The most common EDI errors that trigger chargebacks include: incorrect UPC codes on the 856 ASN, ASN not sent within the required window after shipment, quantity discrepancies between the 850 and 856, and missing carton labels that match the ASN data. Getting these right from day one sets the foundation for a chargeback-free vendor relationship.
EDI setup should begin as soon as you know which retailer you're targeting — ideally months before your expected first order. MOART guides clients through the full vendor setup process, including EDI integration, to make sure nothing slows down your first sale.
