EDI
What is EDI?
Electronic Data Interchange (EDI) is a system used by vendors and Amazon to automate the exchange of key business documents without manual input. Instead of sending emails or paper forms, EDI allows structured data to flow directly between systems in real time.
In the Amazon ecosystem, EDI is primarily used by 1P Vendors through Vendor Central for:
- Receiving purchase orders (POs)
- Sending order acknowledgments
- Submitting advance shipment notifications (ASNs)
- Transmitting invoices
- Confirming delivery and receipt
Benefits of EDI:
- Faster and more accurate order processing
- Reduced manual errors and paperwork
- Improved supply chain efficiency
- Better tracking and reconciliation of shipments
Who uses EDI with Amazon:
- Large manufacturers and distributors (mainly 1P vendors)
- Third-party logistics (3PL) providers
- Integration partners and ERP systems that support EDI
💡 Example: When Amazon places a bulk PO for a vendor's product, the EDI system sends that order directly into the vendor’s ERP system. The vendor replies via EDI with shipment details and invoicing - no manual emails needed.
In short:
EDI = an automated, digital communication system that streamlines document exchange between Amazon and its vendors - improving speed, accuracy, and scalability in operations.
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