Quick answer: EDI (electronic data interchange) lets retailers and suppliers exchange purchase orders, acknowledgments, shipping notices and invoices automatically in standard formats. Most U.S. retail EDI uses ANSI X12 documents: 850 (purchase order), 855 (acknowledgment), 856 (advance ship notice) and 810 (invoice). You need it when a trading partner requires it, which many large retailers do. Small suppliers usually start with a web EDI service.
Key takeaways
- EDI = standardized documents, exchanged electronically.
- The core four: 850, 855, 856, 810.
- Mistakes, especially in the 856, can trigger chargebacks.
- Small suppliers often use web EDI or an EDI provider rather than building it.
The core documents
| Document | Name | Who sends it | What it does |
|---|---|---|---|
| 850 | Purchase order | Retailer | Orders items, quantities, prices, ship dates, locations |
| 855 | PO acknowledgment | Supplier | Confirms the order or flags changes |
| 856 | Advance ship notice (ASN) | Supplier | Details what's on the truck: cartons, pallets, SSCC labels |
| 810 | Invoice | Supplier | Bills the retailer; must match the PO |
Retailers commonly expect the 855 within a day or two. The 856 is checked against what arrives at the dock, so a missing or mismatched ASN can lead to chargebacks, and an invoice that doesn't match the PO can stall payment.
How a typical order flows
- Retailer sends an 850.
- You return an 855 confirming quantities and dates.
- You pick, pack and label cartons with the retailer's required labels.
- You send an 856 before the truck arrives.
- The DC receives and matches the shipment against the 856.
- You send an 810; the retailer pays according to terms.
Your options
| Option | How it works | Best for |
|---|---|---|
| Web EDI | Log into a portal to view POs and create documents | Low order volume, first retail accounts |
| Integrated EDI provider | Connects your order or accounting system to retailers | Growing volume, multiple retailers |
| In-house EDI | Your own software and maps | Large suppliers with IT staff |
Budget for setup fees, per-retailer connections and per-document charges, and test thoroughly with each retailer before going live.
Common mistakes
- Sending the ASN after the truck arrives, or not at all
- Carton counts or SSCC labels that don't match the ASN
- Invoices that don't match PO prices or quantities
- Missing the acknowledgment window on new orders
Prerequisites
EDI depends on clean product data. You'll need GS1-based UPCs for every item (retailers generally require a GS1 Company Prefix licensed to your company), case and pallet configurations, and the retailer's label specifications.
Where EDI fits in the bigger picture
EDI is one part of becoming retail-ready. For barcodes, packaging, insurance and pricing, see our guide to selling to big box retailers and our retail-ready packaging explainer.
Working with Affogato Bean
Affogato Bean supplies branded drinkware and coffee accessories and is building toward retail and institutional programs. Buyers looking for a partner can talk to us.
Frequently asked questions
What is EDI?
Electronic data interchange (EDI) is a standard way for businesses to exchange documents like purchase orders, shipping notices and invoices computer to computer, using formats such as ANSI X12 in the U.S.
Do small businesses need EDI?
Only if your trading partners require it. Many large retailers, distributors and chains require EDI for orders, shipping notices and invoices. Smaller retailers often accept email or portal orders.
What are the main EDI documents for retail suppliers?
The 850 purchase order, 855 purchase order acknowledgment, 856 advance ship notice and 810 invoice. Some retailers require others, such as inventory or remittance documents.
Sources
- CData, “EDI for Manufacturers: X12 850, 856, and 810.”
- Bar Code Graphics, “UPC Barcode — Basic Overview.”
Sources checked October 2026. Statistics are reported as published by each source.