The Small Business Guide to Selling to Big-Box Retailers with EDI

Why Small Businesses Want to Sell to Big Retailers

For small businesses looking to grow, partnering with big-box retailers like Walmart, Target, Costco, and Amazon represents a major growth opportunity. Getting a product onto those shelves or online marketplaces gives access to thousands of new customers, boosts brand credibility, and drives long-term business expansion.

Despite the excitement, without electronic data interchange (EDI) integration, businesses can't meet the automation, accuracy, and speed requirements that big-box retailer partners demand. 

Fortunately, modern web EDI solutions like the Orderful platform make EDI for small businesses easier, faster, and more affordable than ever, allowing them to start selling at scale without massive IT investments.

This guide will walk you through what to expect, covering what EDI is, why retailers require it, common challenges, and how modern web EDI solutions like Orderful can help you succeed.

What Is EDI and Why Do Retailers Require It?

Electronic Data Interchange (EDI) allows businesses to electronically exchange key documents like purchase orders, invoices, and shipping notices via standardized formats. Instead of emailing PDFs or faxing paperwork, companies can automatically send and receive structured data between systems, saving time and reducing errors. In short, EDI streamlines business processes by letting partners talk to each other’s systems directly, without relying on manual input.

How EDI Works in Retail

In the retail world, EDI typically handles core transactions like:

• Purchase Orders (POs): Retailers send POs to suppliers to request goods.

• Advance Ship Notices (ASNs): Suppliers notify retailers when shipments are coming.

• Invoices: Suppliers bill retailers electronically once they fill their orders.

This automated data flow helps both sides maintain accurate inventory levels, fulfill orders quickly, and avoid the costly mistakes that come with manual data entry.

Why Big Retailers Demand EDI

Large retail chains manage thousands, or even tens of thousands, of supplier relationships at once. Manual paperwork simply moves too slowly to keep up with the supply chain flow.

By requiring EDI, these companies can:

• Streamline communication with suppliers

• Ensure accuracy in order fulfillment and invoicing

• Speed up operations from ordering to delivery

Businesses that support EDI have the potential to gain access to major retail companies' supply chains. Understanding and implementing EDI for small businesses is critical for growing through big-box partnerships. A platform like Orderful brings that support, providing an opportunity for access.

Common Challenges Small Businesses Face with EDI

Cost of Traditional EDI Providers

Many small businesses first encounter EDI through large managed service providers (MSPs). While they offer robust solutions, their services often incur additional charges and unexpected fees. For businesses operating on tighter margins, these charges quickly become a financial hurdle, with hidden costs tied to every transaction.

EDI Without ERP

EDI setups are often built assuming an enterprise resource planning (ERP) system is in place to manage inventory, finance, and operations. Smaller businesses might not have an ERP and may not necessarily need one. Traditional EDI providers may push ERP integrations that are expensive, complex, and unnecessary for smaller operations.

Lack of In-House EDI Expertise

Even if a small business wants to embrace EDI, setting up and managing a seamless integration often requires technical skills that smaller teams may not have. Outsourcing experts or hiring consultants can stretch budgets and slow operations.

Onboarding Times

The traditional EDI business model sometimes takes months to implement. Testing connections, verifying compliance requirements, and resolving technical issues create delays before a business even starts selling. This translates directly into lost revenue opportunities.

What Retailers Expect from Suppliers

Required EDI Documents

When working with big-box operations, you'll be expected to exchange specific business documents electronically through EDI, containing purchase order data, billing information, and shipping expectations. The most common documents include:

• EDI 850 document (purchase order): The retailer’s official request for goods, outlining quantities, pricing, and shipping details.

• EDI 810 document (invoice): The supplier’s billing statement, sent after fulfilling an order.

• EDI 856 document (advance ship notice): A document notifying the retailer when a shipment is en route, including detailed shipment contents and logistics information.

To meet retailer compliance requirements, these documents must follow precise formatting and timing standards.

Timelines for EDI Compliance

Large retail partners like Walmart expect EDI setup and testing to move quickly once agreements are signed. Suppliers are often given strict deadlines to become EDI-compliant.

Delays or errors during this phase can impact valuable relationships before sales even begin.

Testing and Certification Requirements

Suppliers must complete testing and certification processes before they can start trading electronically.

This usually involves:

• Sending test documents (POs, ASNs, Invoices) in approved formats

• Demonstrating accurate data transmission and reception

• Passing quality checks to verify error-free communication

Certification ensures both parties can conduct business efficiently, but it adds another technical hurdle for small businesses already managing tight resources.

How Web EDI Solves These Problems

Modern web EDI solutions are designed to eliminate hurdles small businesses face with traditional EDI setups. Instead of expensive integrations, complicated systems, and long wait times, platforms like Orderful offer accessibility and scalability, even without an ERP.

Here’s how web EDI addresses key challenges:

Simple, Browser-Based Access

Traditional EDI often assumes you have a full ERP system running behind the scenes. The Orderful web EDI solution changes that.

Manage purchase orders, third-party logistics, and invoices directly from a standard web browser without investing heavily in software. This makes EDI accessible to small and mid-sized businesses that need agility without complex tech stacks.

Pre-Built Retailer Integrations for Faster Go-Live

Several large retail partners already have fully integrated connections inside the Orderful platform, which allows you to skip long custom integration projects and start trading with major retailers faster.

Orderful shrinks onboarding timelines from months to days, clearing a path to new revenue and increased productivity.

Self-Serve Tools for Quick, Flexible Onboarding

Many traditional EDI implementations require you to depend on their teams to get EDI up and running.

Web-based EDI platforms like Orderful empower your internal team with intuitive, self-serve tools, letting you stay in control. You can manage retailer connections, monitor data flow, and resolve simple issues yourself without needing heavy IT support — all without the hidden fees often accompanying traditional EDI services.

Checklist: What You’ll Need to Get Started with EDI

Before selling to big box retailers, it helps to gather a few essentials that will make your EDI onboarding process go smoothly.

Here's what you'll need to begin:

Basic Business and Contact Information

Provide accurate company contact details, including your legal business name, primary contact, and billing information. This information helps set up your supplier profile within their systems.

Retailer-Specific EDI Requirements

Each retailer may have slightly different document standards and testing processes. Obtain a copy of your trading partner’s compliance guidelines to know which document types you’ll need to send and what format each requires.

A Designated Team Member to Manage the EDI Portal

Even with self-serve tools, an internal point person helps keep communication organized and ensures quick responses to any issues. Choose someone with the skills to oversee transactions, monitor shipments, and follow up on purchase orders and invoices.

How Orderful Helps Small Businesses Sell to Big Box Retailers

The Orderful web EDI solution is built specifically to make the transition to fulfilling large orders simple, fast, and scalable for small businesses ready to grow.

See how Orderful stands out:

Fast Onboarding

Orderful helps eliminate long onboarding timelines that traditional EDI solutions create.

Pre-built connections to major trading partners let you get up and running in days to start selling faster and capitalize on new opportunities. 

No ERP Required

Orderful doesn’t require an ERP system, but many legacy EDI providers require one to be in place before onboarding begins.

You only need a web browser and key trading partner details. Orderful handles the heavy lifting, making EDI accessible even for teams without dedicated IT.

Seamless Retailer Integrations

Adding new retailers becomes a streamlined, straightforward process that supports your growth strategy. Orderful maintains a network of pre-built retailer integrations and third-party logistics providers, so you don't have to start from scratch every time you onboard a new partner.

Transparent and Predictable Pricing

Unlike many traditional managed service providers, which charge hidden fees for onboarding, support, or transactions, our pricing is clear and scalable. As a result, small businesses can budget confidently without fear of unexpected costs.

Unlock Your Web EDI Potential with Orderful

Selling to big box retailers is a great way to accelerate growth, build brand credibility, and reach thousands of new customers.

Modern Web EDI solutions make overcoming common hurdles, meeting retailer expectations, and unlocking powerful new revenue streams easier than ever.

Orderful simplifies trading partner connections, eliminates onboarding headaches, and lets you start fulfilling purchase orders faster. Explore our Web EDI Fulfillment solution to streamline your operations and start selling to big box retailers with confidence. Or schedule a demo today to see how we can help your business grow.