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Understanding Amazon Vendor Central and the Benefits of EDI Integration

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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

Integration with Amazon Seller or Vendor account: Things you should know

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This post was updated to reflect current trends and information

Founded in 1994 in the USA, Amazon.com is the largest online retailer of books, clothing, electronics, music and many other products. Currently, he became one of the leading and largest eCommerce platforms in the world. Amazon keeps pace with technology, by leveraging it to minimize human errors factor and improve efficiency. Amazon was one of the early adopters of process automation and electronic data interchange for his eCommerce platform.

Read: Free Guide – Introduction to EDI

Amazon Vendor Central or Amazon Seller Central?

We have been hearing so much these terms: “Amazon Vendor central” and “Amazon Seller Central”. So, what are these terms? what do they mean? Let’s explore both, one at a time.

Any company that wants to sell its products or services on Amazon’s platform, will be setup on that platform either in the “Amazon Vendor Central” or in “Amazon Seller Central” portal. What is the difference?

Amazon Vendor Central

First, the Vendor Central, is a web-based portal used mainly by manufacturers and distributors. Access to Vendor Central, is by invitation only.

A company selling its products/services directly to Amazon, who in turns sells it to the end consumer, will be setup in the Vendor Central portal of Amazon. In a similar case, Amazon is the buyer of the company’s products. Amazon will sell the products under his own brand name to the end consumer. Usually, when a package is shipped from Amazon to the end consumer, packages are marked as: “Ships from and sold by Amazon.”

Companies setup to use Amazon Vendor Central are considered 1P (or first party seller).

Amazon Seller Central

Again, the Seller Central, is a web-based portal used mainly by the Seller (or store owner on Amazon). Amazon offers his eCommerce platform for companies who want to manage their own stores on his platform and give them the opportunity the Amazon Marketplace. This service is offered against a monthly fee for the usage, and other fees at the transaction level.

In this case, the manufacturer or distribution will be selling his own products directly to consumers on the Amazon marketplace by using Seller Central account.

As a marketplace seller, a subscriber will be able to handle fulfillment and logistics for his “seller account” based on (2) different options:

“Fulfillment by Merchant (FBM)”: The seller can handle the shipping, customer service, and returns for each individual order himself. Fulfillment by Merchant orders, will be shipped out of the merchant’s warehouse. Seller can also use drop-shipping method, subject to compliance with the Amazon Drop Shipping Policy.
“Fulfilled by Amazon program. (FBA):The seller will have the option to allow Amazon to handle fulfillment of his orders, through inventory sent to Amazon warehouses. Obviously, seller has to enroll his products on Amazon under the FBA program, and Amazon will have additional fees towards using his fulfillment resources.

Amazon Data Integration

Integration with Amazon, is the process of implementing one or multiple flows to extract relevant data from a company’s own system and send to its Amazon account/store (i.e. product and pricing information, inventory data…). At the same time, extract the information related to sales orders, clients and payment information from Amazon’s account/store and send to a company’s internal software system.

Read: Integration with Amazon Web Services (MWS): Things you should know

Automating Data Integration with Amazon

As described above, the integration with Amazon is very important and crucial for a company successful online commerce. The integration process does not happen once. It is a continuous process of keeping the “synchronization” as close to “real-time” as much as possible.

To be able to keep a persistent ongoing integration between a company’s Amazon account and its internal Software system, companies have no choice other than embracing “automated integration”.

Benefits of integration with Amazon

Here are the top 5 benefits of integration with Amazon, which will be also detailed in another post in the future:

1. Ability to deliver your products quickly to your consumer in a very competitive marketplace

2. Avoid chargebacks, credits and penalties related to poor or no accurate inventory and stock status on your Amazon account

3. Avoid unnecessary none-productive human errors when manipulating manually orders received from your Amazon account

4. Win on visibility and credibility of your Amazon account and products.

5. Comply with Amazon terms of agreements in relation to product delivery.

Options on Amazon for efficient integration?

Depending on the type of account your company is setup, Amazon offers (2) methods of integration:

EDI (X12) integration (in North America) for Vendor Central account customers
Amazon Marketplace Web Service (Amazon MWS) for Seller Central account customers.

Messages to exchange with Amazon

Whether using EDI X12 or Amazon MWS to exchange messages, he following documents are the mandatory ones for a successful integration:

Amazon works with various providers and types of EDI software:

EDI X12 documents

EDI 846 – Inventory Status
EDI810 – Invoice
EDI 850 – Purchase Order message (Customer triggered)
EDI 855 – Purchase Order Acknowledgment
EDI 856 – ASN (Advance Ship Notice)
EDI 860 – Order Change Notification

Amazon MWS messages

Products
Orders
Order Acknowledgment
Order Payment

Why integration with Amazon is crucial

As one of the largest online retailers in the world, Amazon is a powerhouse when it comes to e-commerce. Integrating your business with Amazon can provide you with unparalleled access to a massive customer base, improved visibility, and increased sales. By utilizing Amazon’s platform, you can tap into their extensive resources and take advantage of their advanced tools for product listings, inventory management, and shipping.

In addition, Amazon’s sophisticated algorithms can help you to target specific customer segments and increase your visibility within your niche market. With Amazon’s robust analytics and reporting tools, you can track your performance and identify areas where you can improve your sales strategy.

Moreover, integrating your business with Amazon can also enhance your brand credibility and customer trust. By aligning your brand with Amazon’s reputation for quality and reliability, you can build a strong customer base that is willing to invest in your products and services.

– The average number of monthly visits to Amazon, according to Similarweb is 2.6 billion.

– Amazon has over 2.5 million active sellers on its platform, with more than half of its sales coming from third-party sellers.

– Amazon’s global logistics network includes over 400 fulfillment centers and 75 sorting centers.

In 2022, Amazon achieved a net sales revenue of almost 514 billion U.S. dollars globally, with its headquarters located in the United States.

Amazon Integration for your business

Don’t miss the great opportunity for your business to trade on Amazon. We provide Integration and Automation for Amazon Seller Central Users as well EDI Integration for Vendor Central Users. Contact us today to get more information, request a quote or schedule a demo.

April 23, 2018

Becoming EDI Compliant with Amazon for a Seamless Integration

Blog, EDI, EDI2XML

This post was updated to reflect current trends and information.

As the Amazon Marketplace becomes people’s go-to for online shopping, I am asked about this successful eCommerce platform and why should e-retailers embrace EDI when selling on Amazon.com. Other great questions from business people include, “Why is it so important to go that route versus using Amazon Web Forms? What are the benefits to be on EDI? What are the steps that a company needs to follow, in order to become EDI-ready?”

To answer the above questions, I decided to write this article and share my experience. This can be helpful to a lot of business people such as executives and business owners and Amazon Account Managers, who most of the time have limited information about eCommerce integration and the use of EDI to simplify their business flow and processes.

What is Amazon.com?

Amazon.com is the pioneer in online retailing and now third largest retailer, behind Walmart and CVS. Amazon has truly come a long way: starting out as an online bookseller, this online marketplace now sells everything, from “A to Z”. In 2017, Amazon acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon’s presence as a physical retailer. The acquisition was interpreted by some as a direct attempt to challenge Walmart as a physical store (As per Wikipedia https://en.wikipedia.org/wiki/Amazon_(company) ). Amazon, as an eCommerce platform, has a presence everywhere (Amazon.ca, Amazon.uk, etc.) and is capable of delivering in almost every country. For more information, you can visit their site and learn more.

Here’s a bit more background on Amazon.com

Amazon is known to be “customer-obsessed”; they focus on selection, price and convenience to “build a place where people can come to find and discover anything they might want to buy online” (Amazon’s Mission Statement)
They are solely an online eCommerce store (eStore)
On Cyber Monday in 2019, it was reported Amazon sales of $9.4 billion in wider retail.
Amazon has acquired Zappos in 2009 and recently acquired Whole Foods
It owns 10% of North American eCommerce – which includes Office Depot, Staples, Apple and Walmart

There are 310 million active Amazon customer accounts worldwide, 90 million of which are Amazon Prime members, many companies are looking to sell their products on Amazon.com. Who wouldn’t want to when Amazon is the KING of eCommerce Stores with roughly 175 million monthly visitors or potential buyers – the largest online marketplace.

Creating an Account & Selling on Amazon.com

Selling on Amazon is quite simple and quick to achieve. It takes few moments to create an account on Amazon.com either personal or business account, setup your items and start selling. Amazon themselves provide a payment gateway solution and all kinds of logistics and assistance to make sure your products are sold and delivered to consumers. One thing for certain, every seller should work and respect Amazons’ own terms and conditions and pay the monthly subscription fee along with the selected program fees.

Managing your Profile on Amazon.com

Part of Amazon’s offering in the eCommerce platform is that they provide an easy “back office” interface, called Vendor Central (for 1P sellers), where brand administrators can add items to the platform, prices, stock availabilities, product descriptions and more. In this same interface, the admin can manage orders received from consumers, updates item statuses and shipment details.

What else is on Amazon Vendor Central?

One of the options provided by Amazon Vendor Central is the ability to set some type of integration between your business software system and your Vendor Central Interface using EDI. This is a very important feature offered at no additional cost to sellers, so that they can integrate their day-to-day orders received from their Amazon store into their Software Management System and vice versa.

Amazon Vendor Central vs EDI Integration

As highlighted in the previous section, the Vendor Central provided by Amazon allows you (as an account and eCommerce store owner) to manage every aspect of your store, manually. This process depends on human interaction and intense manual labour work.

The ability to transport and integrate your data between your software system and your Amazon account in both directions (in and out) is uniquely done through EDI. Meaning when you want to extract an order from Amazon and automatically integrate into your JDE, SAP, Sage or any other system, the only way to do so is using EDI integration. Whenever you need to push new Items, SKUs, pricing ….to your store on Amazon, EDI is the only way to do so without having to manual key in all of this data.

When should you embrace EDI with Amazon?

Selecting the EDI route and becoming compliant with Amazon is truly worth the investment, when the following criteria is met:

An overwhelming number of SKUs are being sold on the Amazon Marketplace
Your SKUs and items sold on Amazon are dynamically changing periodically which makes it very difficult and time consuming for a human to manage it all manually
Your number of orders generated on Amazon are exceeding 15 per day. Why is the magic number 15 orders? This is due to the fact that the window to ship those orders out to your customers is very narrow, about 24 to 48 hours. Therefore, managing this amount of daily orders manually can lead to a ton of human errors and in turn, penalties by Amazon.

What are the top benefits to be on EDI?

There are many benefits to be on EDI when selling on Amazon:

Reduced human errors in data entry
Increased capacity to deliver quickly and on-time
Increased response time when issuing advance ship notices for orders placed on Amazon
Increased scores/reviews and happy customers on Amazon
Ability to quickly and efficiently update your inventory status from your current software or ERP (i.e. JDE, SAP…) into your Amazon account without the need to even login to Vendor Central

Stay on the lookout for part 2 of this article where I dig deeper into the steps that a company needs to follow in order to be EDI compliant with Amazon. In the meantime, feel free to reach our EDI integration experts today to help you with your Amazon integration needs.

For more information on Amazon integration, please read these articles:

November 20, 2017