Amazon Vendor Central EDI - An Essential Guide

Amazon Vendor Central EDI: The Essential Guide for Suppliers

For wholesale suppliers, Amazon Vendor Central is the premier platform to partner with the e-commerce giant. When Amazon purchases your products and sells them directly, it's called a first-party (1P) relationship. But what's the secret to making this relationship run smoothly and profitably? The answer is EDI.

This guide will demystify Vendor Central EDI and show you how this powerful technology is the key to scaling your business on Amazon.

What is Amazon Vendor Central?

First, let's clarify what Vendor Central is. This is Amazon's invitation-only portal for manufacturers and distributors to sell their products directly to Amazon as a wholesale supplier. In this model, you sell your products to Amazon at a wholesale price, and Amazon then handles the listing, pricing, sales, and fulfillment to the end customer. Products appear with the "Ships from and sold by Amazon.com" label.

What is EDI and Why Is It Necessary?

EDI, or Electronic Data Interchange, is the computer-to-computer exchange of business documents in a standardized electronic format. Think of it as a universal digital language that allows different computer systems to "talk" to each other without any human intervention.

While you could manually process every order and invoice through the Vendor Central website, this becomes inefficient and prone to errors. For any supplier with significant order volume, this manual process is unsustainable. It's too slow, too error-prone, and can quickly lead to operational headaches.

This is where EDI becomes essential. It automates this entire cycle, allowing your internal systems (like your ERP or accounting software) to communicate directly with Amazon's systems.

The Core EDI Documents in the Amazon Vendor Central Cycle

The magic of Amazon Vendor Central EDI happens through the exchange of specific electronic documents, each identified by a number. These documents follow the X12 standard, which is the most common format in North America.

Here's the typical flow of documents:

1. Purchase Order (EDI 850): The process begins when Amazon's system automatically generates and sends you a digital Purchase Order. This document contains all the details of what Amazon wants to buy from you, including product IDs, quantities, pricing, and the shipping location.

2. Purchase Order Acknowledgement (EDI 855): Your system automatically receives the PO and sends back an acknowledgement. This document confirms to Amazon that you've received the order and can fulfill it. It can also be used to confirm or reject specific line items if you are out of stock.

3. Advance Ship Notice (ASN) (EDI 856): This is one of the most critical documents. As soon as you prepare a shipment, your system automatically sends Amazon an ASN. This document tells Amazon's fulfillment center exactly what to expect in the shipment, including what's in each box, the tracking number, and the estimated arrival time. An accurate and timely ASN is crucial for Amazon to receive your goods quickly.

4. Invoice (EDI 810): Once the products have been shipped, your system automatically generates and sends an invoice to Amazon. This electronic invoice matches the contents of the purchase order and the ASN, which is a key requirement for getting paid on time.

The Top Benefits of Using EDI for Amazon Vendors

By automating these processes, EDI provides suppliers with a significant competitive advantage.

• Increased Efficiency: Manual tasks like copying data from the Vendor Central portal to your internal systems are completely eliminated. This frees up your team from repetitive work, allowing them to focus on strategic activities like sales and product development.

• Improved Data Accuracy: EDI dramatically reduces the risk of human error. The system-to-system exchange of data ensures that a product ID or quantity is never mistyped, which can be a major source of compliance issues.

• Faster Business Cycles: Automation accelerates the entire order-to-cash cycle. From receiving a PO to submitting an invoice, every step is faster, which improves cash flow and operational agility.

• Scalability: With EDI, your business can handle a much larger volume of Amazon orders without needing to hire more staff to manage the paperwork. This makes it easier to grow your business on Amazon.

• Better Compliance: EDI ensures you meet Amazon's strict deadlines and data requirements, which is essential for a smooth and profitable partnership. It’s the most effective way to maintain a positive relationship with Amazon.

Getting Started with Amazon Vendor Central EDI

Implementing an EDI solution doesn't have to be a complicated process. While Amazon provides the guidelines, most vendors partner with a third-party EDI provider to handle the technical details. A good provider like TPSynergy will connect your internal systems to Amazon's, ensuring all documents are formatted correctly and transmitted seamlessly. This allows you to reap all the benefits of automation without the technical headache.

Ultimately, Vendor Central EDI is more than just a technical requirement—it's a strategic investment in the long-term success and profitability of your partnership with Amazon.

The EDI process is a cycle of communication between the Wholesale Supplier's System and Amazon's System:

1. Amazon's System ➡️ Wholesale Supplier's System

   • Sends a Purchase Order (EDI 850).

2. Wholesale Supplier's System ➡️ Amazon's System

   • Sends a Purchase Order Acknowledgement (EDI 855).

3. Wholesale Supplier's System ➡️ Amazon's System

   • Sends an Advance Ship Notice (ASN) (EDI 856).

4. Wholesale Supplier's System ➡️ Amazon's System

   • Sends an Invoice (EDI 810).

Amazon Vendor Central EDI - Explained