EDI for E-Commerce: How Electronic Data Interchange Streamlines Online Retail


EDI for E-Commerce: Supercharge Online Retail with Automation
What is EDI for E-Commerce?
EDI for e-commerce is the use of Electronic Data Interchange to automate document exchange — like purchase orders, invoices, and shipping notices — between online retailers, suppliers, and fulfillment centers.
Instead of manually entering information or sending PDFs, businesses use EDI to enable real-time, seamless, and error-free communication.
Why EDI is Essential for Online Retailers
As e-commerce grows, so does the need for fast, scalable, and reliable operations. Manual order entry slows down fulfillment and increases the risk of costly errors.
Key Benefits of EDI in E-Commerce:
Faster Order Processing: Automate POs, invoices, and ASNs to ship quicker
Fewer Errors: Reduce manual entry mistakes and duplicates
Inventory Accuracy: Real-time data sync across sales and warehouse systems
Happy Customers: Improve shipping times and order accuracy
Retailer Compliance: Meet EDI mandates from Amazon, Walmart, and more
Common EDI Transactions in E-Commerce
EDI 850 (Purchase Order): When a customer places an order
EDI 810 (Invoice): Used to request payment
EDI 856 (Advance Ship Notice): Details what’s being shipped
EDI 940 (Warehouse Shipping Order): Sends ship instructions to 3PL
EDI 997 (Functional Acknowledgment): Confirms receipt of EDI docs
Real-World Example: Automating Shopify Orders
A health product brand using Shopify struggled with hours of manual order processing — double-checking inboxes, keying data, printing labels, and emailing updates.
After switching to ActionEDI:
Orders pulled directly from Shopify
Shipping details sent to warehouse via EDI 940
ASNs and invoices generated automatically
Every transaction tracked on a single dashboard
Results: 65% less processing time and 40% fewer fulfillment errors.
How ActionEDI Simplifies EDI for E-Commerce
ActionEDI delivers enterprise-grade EDI tools built for growing e-commerce companies.
Why Online Retailers Choose ActionEDI:
Fully Hosted Cloud Platform: No servers to manage
Launch Fast: Start using in days, not months
Unlimited Trading Partners: Grow without hitting limits
Flexible Integration: API, EDI, and WebEDI support for Shopify, ERPs, WMS
All-in-One Dashboard: Monitor every transaction in real time
“With ActionEDI, we connected our Shopify store, fulfillment partner, and accounting system in under a week. It’s a game-changer.” — CTO, Online Apparel Brand
Frequently Asked Questions
Is EDI just for large companies?
No — ActionEDI was built for small to mid-sized e-commerce businesses ready to scale.
How fast can we launch with ActionEDI?
Most brands are live in 7–10 business days.
Is it complicated to use?
No tech skills needed. Our team does the setup. The dashboard is user-friendly.
Next Steps
Are you still manually entering orders and chasing shipping updates?
Let ActionEDI streamline your online business.
EDI made simple. Book a demo at ActionEDI today.
Subscribe to my newsletter
Read articles from Action EDI directly inside your inbox. Subscribe to the newsletter, and don't miss out.
Written by

Action EDI
Action EDI
Achieve Full EDI Compliance in Days, Not Weeks, with ActionEDI. Discover the most complete and scalable EDI software for SME's that makes it easier and more cost-effective to do business with your trading partners. https://www.actionedi.com/