Amazon EDI requirement

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Understanding Amazon Vendor Central and the Benefits of EDI Integration

Intro: Amazon Data Exchange

Amazon Vendor Central supports several ways for vendors to exchange documents including EDI (Electronic Data Interchange), Vendor Central portal, or Vendor Central API (Application Programming Interface).

Since EDI is the preferred mode of document exchange with Amazon Vendor Central, this blog post aims to delve into all the essential aspects of EDI integration for Amazon Vendors.

What is Vendor Central Amazon?

Vendor Central is a program offered by Amazon that enables manufacturers and distributors to sell their products directly to Amazon as a wholesale supplier. In this program, Amazon acts as a retailer and purchases products directly from the vendor at wholesale prices and then resells them to Amazon customers.

Vendor Central provides vendors with several benefits, including access to Amazon’s massive customer base, increased sales volume, and the ability to use Amazon’s fulfillment network to ship products to customers.

To become a vendor in the Vendor Central program, vendors must apply and be invited by Amazon. Once accepted, vendors can manage their business with Amazon through the Vendor Central portal.

EDI for Amazon Vendor Central

Electronic Data Interchange (EDI) is the exchange of business documents between trading partners in a standardized electronic format. EDI is used by Amazon to exchange business documents, such as purchase orders, invoices, shipping notices, etc. with vendors.

For Amazon Vendors, EDI integration can provide a significant competitive advantage by streamlining business operations, reducing manual data entry errors, and improving communication with Amazon.

What are Amazon EDI Requirements?

Amazon has specific EDI requirements for EDI integration that vendors must comply with, in order to conduct business on their platform. These requirements are designed to ensure that all business documents exchanged between vendors and Amazon are in a standardized electronic format and can be processed efficiently. Here are some of Amazon’s EDI requirements:

1. EDI version: Amazon Vendor Central requires that vendors use EDI (Electronic Data Interchange) version 4010 or higher for their transactions in order to ensure compatibility and compliance with Amazon’s systems.

2. Transaction sets: Amazon requires vendors to use specific transaction sets for different business documents, such as purchase orders, invoices, and advance ship notices.

3. Data elements: Amazon specifies the data elements that must be included in each EDI transaction set, including product information, quantities, pricing, and shipping information.

4. Labeling and packaging: Amazon has specific requirements for labeling and packaging of products, including barcode formats and label placement.

5. Timeliness: Amazon requires that vendors transmit EDI documents in a timely manner, according to their specified timelines. Specifically, vendors are expected to:

Transmit Purchase Orders (850) by Amazon within 8 hours of receipt.

Transmit Advance Shipment Notices (856) to Amazon at least 4 hours prior to the shipment arriving at the Amazon fulfillment center.

Transmit Invoices (810) to Amazon within 24 hours of shipment confirmation.

It’s important for vendors to review Amazon’s specific EDI requirements for their business and product category to ensure that their EDI system is set up correctly and can effectively communicate with Amazon’s platform. Failure to comply with Amazon’s EDI requirements can result in delayed shipments, order cancellations, or even the suspension of the vendor’s account on Amazon’s platform.

Key EDI Documents for Amazon

The following are some of the major EDI documents in X12 and EDIFACT standards that Amazon works with:

Inventory Inquiry/Advice EDI 846 (X12) / INVRPT (EDIFACT)

The EDI 846 transaction set is used by vendors to provide Amazon with information about their inventory levels, which helps to ensure that Amazon has accurate information about the availability of products for sale on its platform.

Purchase Order EDI 850 (X12) / ORDERS (EDIFACT)

Amazon sends a purchase order to the vendor in an EDI format. The purchase order includes information about the products being ordered, the quantity, pricing, and shipping information.

Purchase Order Acknowledgment EDI 855 (X12)/ ORDRSP

The vendor sends an order acknowledgment in EDI format to confirm the details of the purchase order and that they can fulfill the order. The Purchase Order Acknowledgment is a critical step in the order fulfillment process, as it helps to ensure that both Amazon and the vendor are in agreement on the details of the purchase order.

Advanced Shipping Notice EDI856 (X12) / DESADV (EDIFACT)

Before shipping the products, the vendor sends an Advanced Shipping Notice (ASN) in EDI format to provide Amazon with information about the shipment, including the contents of the shipment, the quantity, and the carrier information.

Invoice EDI 810 (X12) / INVOICE (EDIFACT)

Once the products are shipped, the vendor sends an invoice in EDI format to request payment for the products. The invoice includes information such as the invoice number, the purchase order number, the quantity shipped, the price, and any applicable discounts or charges.

Payment Order/Remittance Advice EDI 820 (X12) / REMADV (EDIFACT)

In Amazon Vendor Central, the Remittance Advice is used to transmit information related to payments made between trading partners. The Remittance Advice provides information about a payment that has been made, including the amount paid, the date of payment, the invoice number, and any deductions or adjustments made to the payment.

Vendors can use the EDI 820 or REMADV to reconcile their accounts and ensure that they have received payment for all invoices submitted to Amazon. By using EDI to exchange payment information, vendors can improve their cash flow management and reduce errors associated with the manual processing of payments.

Amazon Vendors must ensure that their EDI documents with Amazon are functioning properly and without any issues. Therefore, it is highly recommended to enlist the services of a reliable and experienced EDI provider, such as EDI2XML.

If you want to learn more about EDI, check out our latest guide to EDI

EDI Integration for Amazon Vendor allows for seamless communication between your company’s backend systems and Amazon’s Vendor Central platform. This can help you automate processes, reduce manual data entry, and increase efficiency.

EDI Integration Benefits for Amazon Vendors

Amazon Vendors who implement EDI can enjoy a host of benefits that help streamline their operations, reduce errors, and improve communication with Amazon. Here are a few reasons why Amazon Vendors should consider implementing EDI:

Streamlined Order Management: With EDI integration, orders from Amazon can be automatically received and processed directly into the vendor’s order management system. This can help reduce manual data entry errors, minimize order processing time, and improve order accuracy.

Reduced Costs: EDI integration can help reduce costs associated with manual data entry, paper-based processes, and manual order fulfillment. This can help vendors save time and money and increase profitability.

Improved Communication: EDI integration provides a more reliable and efficient way to communicate with Amazon, ensuring that orders and other business documents are exchanged accurately and in a timely manner.

Increased Visibility: With EDI integration, vendors can gain real-time visibility into their order and inventory data, enabling them to make more informed business decisions.

Is it Possible to Set up EDI Amazon Vendor Integration Yourself?

Yes, it is possible to set up Amazon Vendor integration on your own. Amazon provides technical documentation to help vendors integrate their systems with Amazon Vendor Central through EDI.

However, setting up integration can be a complex process, and vendors may need technical expertise to ensure that the integration is properly implemented and meets Amazon’s requirements.

Most often, vendors choose to work with a third-party EDI service provider or systems integrator to help set up and manage their integration with Amazon.

The EDI service providers like EDI2XML can offer expertise and support to help vendors optimize their integration and ensure that it is operating smoothly.

Ultimately, the decision to set up Amazon Vendor integration on your own or with the help of a service provider will depend on factors such as the vendor’s technical capabilities and resources, the complexity of the integration, and the vendor’s business needs.

Best Practices for Successful EDI Integration with Amazon Vendor Central

To ensure successful EDI integration for Amazon Vendors, here are a few best practices to follow:

1. Choose an EDI provider that has experience working with Amazon Vendors.

2. Work closely with your EDI provider to ensure that your system meets Amazon’s EDI requirements.

3. Integrate EDI with Your Order Management System (ERP/CRM) to ensure that orders are automatically received and processed.

4. Continuously evaluate and optimize your EDI integration to ensure that it meets your business needs and remains compliant with Amazon’s requirements.

Conclusion: Amazon Vendor Central and the Benefits of EDI Integration

Overall, integrating EDI with Amazon Vendor Central can help you streamline your operations, reduce errors, and increase efficiency. By working with a reliable EDI provider and following Amazon’s documentation and requirements, you can achieve successful integration and enjoy the benefits of automated processes and faster payments.

At our company, we have years of experience in EDI integration and are committed to helping businesses successfully integrate their systems with Amazon Vendor Central. We understand the challenges involved in EDI integration and provide the first free consultation to help businesses get started on the right foot. Contact us today to take advantage of our expertise and start reaping the benefits of EDI integration.

March 27, 2023/0 Comments

What is EDI 846 document?

Blog, EDI

This post was updated to reflect current trends and information.

What is EDI 846 Document?

One of the most important electronic EDI documents heavily exchanged between trading partners is the 846 X12 document. It is important mainly due to the evolution of the drop-shipping business that saw a great advancement in the last few years, because of eCommerce and online sales.

The EDI 846 document, also known as the Inventory Inquiry/Advice transaction set, is used in Electronic Data Interchange (EDI) to provide inventory information between trading partners in the context of e-commerce. This transaction set is commonly employed in the retail industry to facilitate the exchange of inventory details.

This EDI document originates from the paper-based “inventory inquiry and advice”. Basically, it is a notification sent by the manufacturer to the seller, advising about stock status and availability. It can also include pricing information. In other words, this EDI message is to exchange information about stock levels and the availability of goods.

For e-commerce, it is very important to have up-to-date information about the availability of goods. That is why one of the major EDI requirements for Amazon, is the capability of the supplier to transmit an EDI 846 Inventory Inquiry message. This is not only a requirement for Amazon exclusively; Other leading retailers such as Cabela’s, Wal-Mart, Costco … all have the same EDI requirement, to be able to feed their e-commerce platform with quality inventory status information.

The EDI 846 document can be sent to business partners, as many times as necessary. It can be 2-3 times a week, up to several times a day; each retailer has his own requirements. EDI 846 Inventory Inquiry/Advice permits suppliers to provide trading partners with information about their products without forcing them to make a purchase. In addition, the EDI 846 transaction is often used to notify business partners about the availability of goods at discounted prices.

EDI 846 Inventory Inquiry and Advice Usage

The other obvious question about 846: who uses this EDI 846 message other than Amazon and the major eCommerce retailers?
The truth is that not only eCommerce retailers can use this EDI transaction and exchange 846 documents. All trading partners can agree to use it to exchange inventory availability and stock level. Some examples:

sellers to provide inventory information to a potential customer
seller’s representatives to supply the seller with inventory information
one seller’s location to give another location inventory information
seller to demand the availability of inventory

Diverse Applications of the EDI 846 Transaction Set in Varied Industries and Business Scenarios

The EDI 846 Inventory Inquiry/Advice transaction, has varied usage across different industries and business scenarios. Its primary purpose is to provide detailed information about the current inventory levels of a product at a specific location, typically a warehouse or distribution center. This information is crucial for effective supply chain management and helps trading partners optimize their inventory levels and order fulfillment processes.

Here are some of the varied uses of EDI 846:

Inventory Replenishment: Retailers and suppliers use the EDI 846 to communicate current inventory levels and forecast demand. This helps in making timely decisions regarding inventory replenishment and avoiding stockouts.
Order Planning: The information exchanged through EDI 846 aids in order planning by providing insights into product availability. Retailers can adjust their order quantities based on the actual inventory levels at the supplier’s end.
Demand Forecasting: By analyzing historical inventory data provided through EDI 846, businesses can better forecast future demand for products. This can lead to more accurate production and procurement planning.
Vendor-Managed Inventory (VMI): In VMI arrangements, suppliers use EDI 846 to monitor and manage the inventory levels at their customers’ locations. This collaborative approach helps in maintaining optimal stock levels and reducing carrying costs.
Supply Chain Optimization: The use of EDI 846 contributes to overall supply chain optimization by enhancing communication and collaboration between trading partners. It streamlines the flow of information related to inventory, reducing manual processes and improving efficiency.
E-commerce Integration: In the context of e-commerce, EDI 846 plays a role in updating online product availability and supporting real-time inventory visibility for customers. This is important for online retailers and marketplaces to provide accurate information to customers about product availability.

Overall, the varied usage of EDI 846 reflects its importance in facilitating efficient inventory management, enhancing collaboration between trading partners, and improving the overall supply chain performance.

What Information Does the EDI 846 Document Transmit?

In the EDI 846 transmission, inventory location identification, item, and part description, and quantity are the basic information included in almost any EDI 846 document; however, additional information can be added such as:

Quantity forecasted
Quantity sold already
Quantity available in stock
Pricing information

With EDI 846 online stores optimize their deliveries. They do not need to enter data manually into their internal systems, such as ERP or back-office of their stores. It gives an accurate information to online shoppers about the availability of stock, in a real-time mode. Moreover, it does reduce the administration fees and expenses to process orders and items bought by consumers, while having no stock.

What are the Benefits of Using the EDI X12 846 Inventory Inquiry/Advice?

The EDI X12 846 Inventory Inquiry/Advice transaction set provides several benefits for businesses that use it. Here are some of the key benefits:

1. Improved inventory management: The 846 transaction set provides real-time updates on inventory levels and enables businesses to quickly identify inventory shortages or excesses. This helps businesses to optimize their inventory levels, reduce carrying costs, and avoid stockouts.

2. Increased efficiency: The use of EDI eliminates the need for manual data entry and reduces the risk of errors. This can result in faster order processing times, reduced labor costs, and improved accuracy.

3. Enhanced collaboration: The 846 transaction set allows for seamless communication between trading partners and provides a standardized format for inventory information. This makes it easier for businesses to collaborate with their partners and share inventory data consistently and efficiently.

4. Better decision-making: By having access to real-time inventory data, businesses can make better decisions about when to reorder products, how much to order, and where to allocate inventory. This can help businesses to reduce inventory holding costs, improve customer satisfaction, and increase profitability.

5. Competitive advantage: By using the 846 transaction set, businesses can differentiate themselves from their competitors by offering faster, more accurate inventory information to their customers. This can help businesses to attract and retain customers, increase customer loyalty, and gain a competitive edge in the marketplace.

For more information about how edi2xml fully managed services or web service can help you set up your EDI 846 Inventory Inquiry/Advice with your trading partners, please contact us.