Electronic Data Interchange
Electronic data interchange (EDI) is the exchange of standardized electronic documents between trading partners, such as purchase orders (850), invoices (810), and advance ship notices (856).
Why it matters for ecommerce brands
EDI is the price of entry for selling to most large US retailers, and errors in it cause chargebacks. Purchase orders, ship notices, and invoices move between systems in standard formats such as the 850, 856, and 810. Every field must match the retailer's specifications and the physical shipment. For example, an ASN that lists 40 cartons when 38 arrive can trigger a compliance fine and a delayed payment. Small brands often use an EDI provider or their 3PL's EDI service instead of building their own.
Common questions
- Do I need EDI to sell to retailers?
- Most large US retailers require suppliers to exchange purchase orders, ASNs, and invoices via EDI. Smaller brands often use an EDI provider or their 3PL's EDI service instead of building it in-house.
- What are the most common EDI documents?
- For retail suppliers, the main ones are the 850 purchase order, the 855 purchase order acknowledgment, the 856 advance ship notice, and the 810 invoice. Retailers may also use others, such as the 846 inventory report.
- What is the difference between EDI and an API?
- EDI exchanges standardized business documents, often in batches, which suits retailers and large trading partners. APIs exchange data in real time between software, which is common with ecommerce platforms and 3PLs.
Cite this entry
"Electronic Data Interchange (EDI)." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/electronic-data-interchange/