As businesses grow and diversify their online presence, integrating with platforms like Amazon Vendor Central becomes essential. One of the most effective tools for automating business processes on Amazon is Electronic Data Interchange (EDI). EDI facilitates the seamless exchange of documents such as purchase orders, invoices, and shipping notices between businesses in a standardized format. This guide will walk you through the ins and outs of EDI ordering in 2025, focusing on how you can leverage it for smooth purchase order processing with Amazon Vendor Central.
What is EDI Ordering?
EDI ordering refers to the process of electronically exchanging purchase orders (POs) and related documents between businesses. By converting information into a standardized digital format, EDI allows companies to automate various tasks such as order confirmations, invoicing, and shipping updates. For Amazon vendors, EDI is critical to handling large-scale operations efficiently, reducing manual labor, and eliminating errors.
EDI integrates directly with Amazon Vendor Central, enabling vendors to manage purchase orders, backorders, shipments, and more automatically. The platform supports EDI formats like X12 (commonly used in North America) and EDIFACT (widely used in Europe and other regions), allowing global compatibility.
Key Benefits of EDI Ordering
Before diving into the setup process, let’s explore why EDI ordering is essential for modern businesses working with Amazon:
- Automation: By automating the exchange of documents, EDI eliminates the need for manual input, reducing human error and saving time.
- Faster Processing: EDI drastically reduces the time taken to process orders, shipments, and invoices. POs are automatically confirmed and updated, helping businesses meet delivery windows.
- Cost Efficiency: Automation cuts down on administrative costs. Fewer errors mean fewer resources spent on corrections, disputes, or delays.
- Improved Data Accuracy: EDI ensures that information such as stock levels, pricing, and quantities remain accurate across systems, reducing discrepancies.
- Real-Time Updates: Businesses can update POs, backorder statuses, and product availability in real-time, allowing Amazon to make more informed purchasing decisions.
What is EDI Order Processing?
EDI order processing is a method of automating the exchange of essential business documents between Amazon and its vendors. Using the EDI X12 standard in the U.S., vendors can receive purchase orders through EDI 850, confirm them with EDI 855, and send Advance Shipment Notifications (ASNs) via EDI 856 as shipments are prepared. After dispatching goods, vendors then submit invoices through EDI 810. This fully automated process eliminates the need for manual data entry, speeding up processing times, reducing errors, and improving operational efficiency. Amazon further supports vendors with analytics tools in Vendor Central, which help track and confirm successful EDI transmissions, ensuring a seamless, optimized order processing experience.
Advantages of Automating Order Processing with EDI
- Increased Speed and Efficiency in Processing Orders: Automating order processing with EDI enables real-time processing, drastically reducing processing time and boosting efficiency compared to manual entry.
- Reduction of Manual Errors and Discrepancies: By replacing manual data entry with EDI, error reduction becomes significant, minimizing discrepancies and ensuring accurate order details every time.
- Cost Savings from Reduced Labor and Paper Use: EDI automation lowers labor costs by reducing the need for manual intervention and paper-based processing, leading to substantial cost savings.
- Enhanced Supply Chain Visibility and Responsiveness: Real-time processing with EDI provides up-to-the-minute supply chain visibility, allowing businesses to respond proactively to changing demands and trends.
This automation optimizes operations through efficiency, real-time data accuracy, and tangible cost savings, making EDI essential for modern eCommerce.
How to Set Up EDI in Amazon Vendor Central for Processing POs
Step 1: Access the EDI Integration Tab
To begin the EDI ordering setup, log into your Amazon Vendor Central account and navigate to the Integration (EDI/API) tab. Here, click on EDI Integration to start configuring your account for EDI.
- Choose your vendor code and select View EDI Setup to open the Messages Dashboard. This dashboard is your central hub for all EDI messages such as purchase orders (POs), acknowledgments (POA), and Advance Shipment Notifications (ASN).
Step 2: Configuring EDI for Purchase Orders (PO)
The purchase order process is one of the most critical for Amazon vendors. Amazon sends POs electronically, and your system needs to process them efficiently.
- From the Messages Dashboard, click Start next to the Purchase Order (PO) message to set up EDI for POs.
2. Acknowledge Business Requirements: Before moving forward, ensure you understand Amazon’s requirements for PO processing, including timeframes and format specifications.
3. Configure Settings: You can set PO preferences such as line item limits, fulfillment center codes, and more. Make sure these settings align with your business needs to avoid mismatches.
4. Promote to Production: After configuring the PO setup in a test environment, promote it to production once all tests are passed.
Step 3: Confirming Purchase Orders (POA)
Once a PO is received, it must be confirmed via a Purchase Order Acknowledgment (POA). Vendors have 24 hours to confirm each PO through EDI. This step ensures Amazon knows which items and quantities to expect, reducing the chance of shortages or mismatches.
- POA confirmation can be sent manually via Vendor Central or through EDI in either X12 or EDIFACT formats.
- Ensure Accuracy: POAs must match the original purchase order exactly, including item IDs and cost prices. If a mismatch occurs, the POA could be processed incorrectly, leading to fulfillment delays or chargebacks.
- Modify if Necessary: Vendors can update the POA up to 2 days after the PO is issued or 14 days before the Advance Shipment Notification (ASN) ship date, whichever is later. This is useful if quantities or delivery dates need adjustments.
Step 4: Updating Product Availability and Backorders
Keeping your product availability status updated is key to ensuring Amazon sends accurate POs. EDI allows vendors to update availability in real-time, impacting future PO generations.
- You can mark products as In Stock, Temporarily Unavailable, or Permanently Unavailable through your product catalog in Vendor Central. Backordered items can also be updated, but these only appear for sale if the restock date is within 30 days.
For backordered products, you can confirm any unavailable items through the EDI system by selecting Backordered under the availability column. If your PO doesn’t support backorders, cancel the line items you cannot fulfill and wait for the next order cycle.
We've covered the full EDI integration process in another blog. Check it out for a comprehensive guide on achieving seamless business operations with EDI integration.
Managing Purchase Order Changes
Even after confirming a purchase order, changes are sometimes necessary. Amazon allows vendors to modify confirmed POs in specific circumstances. You can update PO quantities, delivery dates, and availability status within two days of receiving the PO or 14 days before the ASN ship date.
How to Update a Confirmed PO:
- Navigate to Orders > Purchase Orders in Vendor Central.
- Select the PO you want to edit, then click Open Selected POs.
- Modify quantities, delivery dates, or availability status for each line item as needed.
- Submit the changes, and ensure that all the updates are reflected in your product catalog and shipping documentation.
Advance Shipment Notifications (ASN) and EDI 856 Integration
Advance Shipment Notifications (ASNs) are crucial for letting Amazon know when and what you’re shipping. ASNs must include details such as purchase order numbers, carton contents, and product quantities.
By integrating EDI 856, you can automate ASN submissions and ensure that Amazon receives accurate shipment data well before products arrive. This prevents delays during the receiving process at Amazon fulfillment centers.
Key Requirements for ASN:
- Purchase order numbers and item-level details (SKU, quantity, etc.).
- Shipping container information like Serial Shipping Container Codes (SSCC).
- For perishable items, expiration or production dates.
- Accurate carton and pallet labeling as per Amazon’s specifications.
Compliance and Acknowledgment Codes
EDI 855 (Purchase Order Acknowledgment) includes various acknowledgment codes that categorize your confirmation or rejection of specific PO line items. These codes must be accurate to avoid errors in processing POs.
- Full Acknowledgment: When the entire PO is accepted.
- Partial Acknowledgment: When only some line items are accepted.
- Rejection: When no items on the PO can be fulfilled.
Each line item must have a corresponding code that reflects its current status.
Conclusion
EDI ordering in 2025 offers vendors seamless integration with Amazon Vendor Central, automating key business processes such as purchase orders, acknowledgments, and shipping notifications. By implementing EDI, vendors can reduce costs, minimize errors, and ensure smooth, efficient transactions with Amazon.
To maximize the benefits of EDI, it’s important to stay updated on Amazon’s requirements, configure your system accurately, and maintain clear communication between your business and Amazon. By following the steps outlined in this guide, you’ll be well-equipped to handle EDI ordering efficiently and effectively for years to come.
At SalesDuo, we make Amazon and 1P Purchase Order management effortless with our 100% automated EDI system. Powered by our proprietary AI model, our solution helps you minimize Shortage Claims and Chargebacks, so you can optimize efficiency and profitability seamlessly. To automate your Amazon operations and maximize your business growth, get in touch with us!
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About the Author
Kevin Celestine is a powerhouse in eCommerce Business Operations and Customer Relationship Management, steering impressive growth across diverse categories. Outside work, Kevin fuels his passion for sports, globe-trotting adventures, and diving into the richness of new cultures.
